78723CO

MANAGERIAL ACCOUNTING

CONTROLLING

SAP Calls Managerial Accounting as ‘Controlling’ and the module is commonly known as ‘CO’. The CO module is thus primarily oriented towards managing and reporting cost/revenue and is mainly used for internal decision making. As in which any other module this module has configuration setup and application functionality.

The controlling module focuses on the internal users and helps the managements by providing reports on cost centres, contribution margin and profitability etc.

Maintain Controlling area

A controlling area is the central organizational structure in Controlling (CO) and it is used in the cost accounting. The controlling area, as in the case of company code, is a self contained cost accounting entity for internal reporting purpose. The controlling area is assigned to company code so as to ensure that necessary transactions posted in FI are transferred to controlling for cost accounting process.

1- A company code needs to be attached to the controlling area (1:1 relationship). 2- More than one company code can work with same controlling area. 3- A Chart of Account can be assigned to more than one controlling area4- One or more controlling area can be defined under an Operating Concern5- At Client level there can be one or more controlling areas.

Sub-module in CO

Cost element Accounting

Cost elements are nothing but update the GL master records in to controlling

Cost Centre Accounting

This module we are using to view the departmental wise Cost

Internal Orders

These internal orders we are using for view the specific cost of cost

Profit Centre Accounting

This profit centre accounting we are using for viewing the profit in product wise/product group wise/location wise etc

Profitability Analysis

This profitability analysis we are using for viewing the profit at a time in different parameters

- 1 -UBAID ANCHALAN


like product wise/ Customer wise/ Plant wise/ Division wise/ Sales organization wise/Distribution channel wise.

Product Costing

This product costing we are using for valuate the inventory value like finished goodsWork-in-progress

Maintain Controlling Area (OKKP)

Path: Spro → Img → Controlling → General Controlling → Organization → Maintain Controlling Area

Double click on Maintain Controlling areaClick on new entriesControlling area – TACO (Any)Name – Controlling area for TAST

Assignment of ControlCompany code – TAST Area – Cross company code cost accountingCurrency – 10 (Company code Currency)Currency – INR Chart of Account – CHACFiscal year variants – T1 (std – V3)Cctr- standard hierarchy – TAST_CCTR (Any)Double click on Assignment of Company code folderClick on yesClick on new entriesCocd Name TASTPress enter key and SaveDouble click on Activates components/ Control indicators folderClick on new entriesFiscal year – 2009Cost center – Component Active (Tick mark)Activate AA Activity type (AA- Activity allocation)Order managements – Components activeSelect profit center AccountingPress enter key and SaveCome back 5 times

Maintain number range for Controlling document (KANK)

Path: Spro → Img → Controlling → General controlling → Organization → Maintain number range for controlling documents

- 2 -UBAID ANCHALAN


Co-area – TACOClick on group tab (f6)Now go to group in Menubar → Insert Text – Controlling documents number range for TASTFrom Number To Number

100000Press enter key and SaveCome back wise

Maintain Version

Path: Same

Now go to Extras in Menubar → Set controlling area Controlling area – TACOSelect – 0 VersionDouble click on Controlling area settings folderAgain Select 0 VersionDouble click on settings for each Fiscal year folder

Note: Now by default we will get 5 fiscal year in this 5 fiscal year if the current fiscal year is not exist so that we have to create the current fiscal year

Click on new entries for creation of new fiscal year Fiscal year – 2009 Deactivate Version Locked (If you activate this check box that mean it is not possible to maintain the value in 2009)Deactivate Integrated Planning (If you want to transfer to the planning value from one cost object to another on that time we have to activate this check box)Activate Copying allowed (If you activate this check box it is possible to copy the plan value from one fiscal year to another fiscal year)

Exchange rate type – M (Avg rate)Press enter key and SaveNote: Just like this we can create any number of fiscal year. If the 2008 is already exist no need to create Come back 4 times

Period Lock

In this period lock we are locking the CO business transaction that mean we are not giving the authorization for users to post to CO transaction

- 3 -UBAID ANCHALAN


Period Lock procedures (OKP1)

Path: Sap easy access → Accounting →Controlling → Cost center accounting → Environment → Period lock → change

Controlling area – TACOFiscal year – 2009Version – 0Click on Actual tabTransaction 01 (First period) CO through posting from FI ActivateClick on SaveNow got to F-02 try to post a CO documents on the time you will get the following message“Transaction CO through Posting from FI has been locked”Deactivate the period lock check box

COST ELEMENTS ACCOUNTING

Cost element is nothing but the updating master data in to CO. There are two types of cost elements they are

1) Primary cost elements 2) Secondary cost elements

Primary cost elements

The primary cost elements represents the consumption of production factors like raw-material, human resources, utilities etc. The primary cost elements have their corresponding GL account in FI. All the expenses or revenue accounts in FI correspond to the primary cost elements in CO.SAP treats revenue elements also as primary cost elements in CO processing. The only difference is that all the revenue elements are identified with negative sign while posting in CO. The revenue elements correspond to the revenue account in FI, and they all under the category 01/ 11 of Cost elements category.

Secondary cost elements

The Secondary cost elements represents the consumption of production factors provided internally by the enterprises itself, and are the presents only in the CO. Those elements we are recorded with in the CO side only is called secondary cost elements

Cost elements creation

There are two type of cost elements creation procedures1) Manual Creation2) Automatic Creation

- 4 -UBAID ANCHALAN


Manual Creation

In this manual creation after the creation of GL account users should update this account in to COAutomatic Creation

Here after the creation of GL accounts the system automatically update this account in to CO

Manual Creation

Cost Account updation

Go to FS00 Select the salaries accountClick on change field Click on create/bank/interest tabNow change the field status group in to G004 (Cost account)Press enter key and SaveClick on edit cost elements tabCost elements - Salaries AccountValid from – 01-04-09 to 31-12-9999Click on master data tabCost elements category – 1 (Primary Cost)Press enter key and SaveNote: Just like we can update all cost of accounts

Revenue Account updation

Go to FS00 Select the sales accountsClick on change field Click on create/bank/interest tabNow change the field status group in to G029 (Revenue account)Press enter key and SaveClick on edit cost elements tabCost elements - Sales AccountValid from – 01-04-09 to 31-12-9999Click on master data tabCost elements category – 11 (Revenues)Press enter key and SaveNote: Just like we can update all Revenue accounts

Automatic Updating

Path: Spro → Img → Controlling → Cost elements accounting → Master data → Cost elements → Automatic creation of primary and Secondary cost elements

A) Make default settings (OKB2)

- 5 -UBAID ANCHALAN


Chart of Accounts – CHACAccount from Account to Cost elements category (CECT) 300001 400000 11 (Revenue)400001 500000 1 (Primary cost)Press enter key and SaveCome backB) Create Batch input session (ORB3)Controlling area – TACOValid from – 01-04-09 Valid to – 31-12-9999Session name – UbaidPress F8 for executeCome back twise

C) Execute Batch input Session

Select your Session – UbaidClick on Process TabSelect display errors onlyClick on process Click on session overviewCome back

Note: But generally we are not preferring the automatic updation

Display of Cost elements index (KA23)

Path: Sap easy access → Accounting → Controlling → Cost elements accounting → Information system → Report for cost and Revenue elements Accounting → Master data index → Cost elements master data report

Select All cost elementsPress f8 for execute

COST CENTER ACCOUNTING

Cost Centre Accounting

Cost centre is an organizational element within the controlling area. Cost centre accounting helps to track the where the costs are incurred in your enterprises. All the cost elements like salary, wages, rent, water charges etc incurred are either assigned or posted to a cost centre.This cost centre accounting we are using for view the departmental wise cost

Cost Centre Category Creation (OKA2)

Cost centre category is an indicator in the Cost centre master record to identify what kind of activities a particular cost centre will be performing.

- 6 -UBAID ANCHALAN


Path: Spro → Img → Controlling → Cost centre Accounting → Master data → Cost centre → Define cost centre categories

Just check the categories and study the check box. No need to create own categories because already various categories available. If you want you can do by clicking new entries

Creation of Cost Centre group (KSH1)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Master data → Cost centre group → Create Cost centre group – TAST_CCTRClick on Hierarchy (F6)Click on YesTAST_CCTR – Cost centre group for TASTClick on lower level tab→ Prod – Production DepartmentsClick on same level tab→ Purc – Purchase departmentsClick on same level tab→ Sale – Sales DepartmentsClick on same level tabMagm – Managements DepartmentsClick on same level tab→ Admn – Administration departmentsClick on same level tab→ RanD – Research and DevelopmentsClick on saveCome back wise

Creation of Cost Centre (KS01)

Create the following Cost centre under the Production DepartmentsDepartment – ADepartment – BDepartment – C

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Master data → Cost centres → Individual Processing → Create

Cost centres – Dep AValid from - 1-04-09 to 31-12-9999Click on Master data tabName – Dep ADescription – Department APerson responsible – UBAID

- 7 -UBAID ANCHALAN


Cost centre category – 1 (Production)Hierarchy area – Prod (Production Departments)Business area – TAHYCurrency – INRPress two times enter key and Save

Note: Just like we can create Departments B, C and Many more.

If you want to change Cost centre master data go to KS02 If you want to display the cost centre go to KS03

Display of Cost Centre Index (KS13)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information system → Reports for Cost centre accounting → Master data index → Cost centre master data reports

Select all Cost centresPress F8 for execute

CO Documents Number ranges Settings (KANK)

Path: Spro → Img → Controlling → General controlling → Organization → Maintain number ranges fro controlling documents.Controlling area – TACOClick on group tab (F6)Click on Controlling documents number ranges for TAMTSelect COIN CO Through Posting from FIClick on elements group tabClick on saveCome back wise

CO Documents Posting through FI

Go to F-02Paid department A salary 10000 through bank on 30-04-09Document date – 30-04-09 Type – SA Company code – TASTPosting date - 30-04-09 Period – 01 Currency – INRDocu header text – Salaries paidPstky – 40 Account – Salaries AccountPress enter key Amount – 10000Cost center – Departments AText – Salaries paidPstky – 50 Account – Bank AccountAmount - * Business area – TAHY

- 8 -UBAID ANCHALAN


Text - +Press enter key simulate the documents and SAVENote: Now you will get the FI Documents Number internally in CO system generate the documents.

Display of CO Documents (KSB5)

Path: Sap easy access → Accounting → Controlling → Cost center accounting → Information system → Reports for Cost center Accounting → Line items → CO Documents Actual Cost

Documents number - *Layout – 1SAP (Primary cost posting)Press f8 for execute and Check the documents details

Display of Cost centre Reports (KSB1)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information system → Reports for Cost centre Accounting → Line items → Cost centre actual line items

Cost centre – Dep ACost elements – Salaries AccountsPosting date – 01-04-09 to 31-03-2010Layout – 1SAPPress F8 for execute

Planning of Cost Centre (KP06)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Planning → Cost and Activity inputs → Change

Version - 0From Period – 1 to period - 1Fiscal year – 2009Cost centre – Dep ACost elements – Salaries Accounting Select form based (We can change in future)Press F5 for Overview the screen Assign the 8000 in Plan fixed Cost columnPress enter key and Save

Actual / Plan Variants Reports (S_ALR_87013611)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information system → Reports for Cost centre Accounting → Plan/ Actual Comparison → S_ALR_87013611-Cost centre/ Plan/ Actual/ Variants

- 9 -UBAID ANCHALAN


Controlling area – TASTFiscal year – 2009From period - 1 to Period – 1Plan Version – 0Cost centre value – Dep ACost elements value – Salaries AccountsPress F8 for execute

REPOST CO LINE ITEMS

This repost CO line items we are using by the time of documents posting when we don’t know where that cost was incurred

Go to KS01 Create the Dummy Cost centres under production departments

CO Documents number range settings

Go to KANK Controlling area – TACOClick on Group tab (F6)Select controlling documents number ranges Double click on RKU3 Repost cost line items business transaction from not assigned Column Click on elements/ Group tabClick on Save

Go to FS00 Select Printing and stationary account and Update in to CO (Field status group – G004 (Cost accounts)

Purchase printing and Stationary 10000 on 01-04-2009 through cash and this assigned to Dummy Cost centres

Go to F-02 Post the following Documents

Printing and Stationary Account 10000To Cash 10000

Note the FI documents number -19

Repost cost line item Procedures (KB61)

Now in this above documents Printing and Stationary at moth end we distribute the following Cost centresDep A – 6000 Dep B – 3000 Dep C – 1000

Path: Sap easy access → Accounting → Controlling → Cost centre Accounting → Actual Posting → Repost line item → Enter

- 10 -UBAID ANCHALAN


Documents Number – 19 Company code - TAST Fiscal year – 2009Cost elements – Printing and Stationary AccountCost centre – DUMMYPress F8 for execute Double click on 10000Click on header tabPosting date – 30-4-2009 Document date – 30-04-2009Click on Raw tabNew Account AssignmentAmount – 6000Cost centre Dep APress enter keyAmount – 3000Cost centre Dep BPress enter keyAmount – 1000Cost centre Dep CPress enter key and Save

REPOST COST

This repost cost we are using when user assign the wrong cost centre

CO Documents Number ranges settings

Go to KANK Controlling area – TACOClick on group tab (F6)Select control documents number ranges Double click on RKU1 Repost cost business transaction from not assigned column Click on elements/ group tabClick on Save

Go to F-02 Post the following documents on 30-04-09 Assigned to department A cost centre

Salaries account 10000 To Bank account – 10000

Actually this cost was incurred on Dep B Cost centre but User wrongly assigned to Dep A Cost centre.



Repost Cost Procedures (KB11N)

Path: Sap easy access → Accounting → Controlling → Cost centre Accounting → Actual Posting → Manual reposting of cost → Enter

Documents date – 30-04-09 Posting date – 30-04-09Period – 1 Documents text – Repost CostCCTR (old) Cost elements Amount CCTR (New) Dep A Salaries Account 10000 Dep BPress enter key and Save

STATISTICAL KEY FIGURES

Statistical key figures is nothing but cost unit

Cost Units Salaries Number of employeesTelephone bill Number of tel billsElectricity bill Number of unitRent Number of Sqft

Creation of statistical key figures (KK01)

Path: Sap easy access → Accounting → Controlling → Cost center accounting → Master data → Statistical key figures → Individual processing → Create

A) Statistical key figures – 100 (any)Click on Master data tabName – Number of employees Statistical key figures units – ea (each)Key figures category – Select Fixed value (Number of employee will be same)Press enter key and Save.B) Statistical key figures – 200Click on master dataName – Number of SqftStatistical key figures – eaKey figures category – Select fixed value Press enter key and SaveC) Statistical key figures – 300Click on master dataName – Number of tel call unitStatistical key figures – eaKey figures category – Select total value (Call will be change in every year)Press enter key and SaveD) Statistical key figures – 400Click on master data



Name – Number of electricity unitStatistical key figures – eaKey figures category – Select total value (unit will be change in every year)Press enter key and Save

The Phone bill posting with statistical key figures

Step1: Paid telephone bill 1000 through cash on 30-04-09 for 1000 telephone call

Step2: Go to FS00 select telephone bill account and update in to CO (Field Status – G004)

Step3: Go to F-02 Post the following documents for departments A on 30-04-09

Telephone bill a/cTo Cash a/c

Define plan value for telephone bills (KP06)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Planning → Cost and activity inputs → Change

Version – 0From period – 1 To Period – 1Fiscal year – 2009Cost centre - Dep ACost elements – Telephone bill a/cSelect Form based Press F5 for Overview screenAssign 800 in Plan fixed cost columnPress enter key and Save

Statistical key figures posting

A) CO Documents number ranges settings

Go to KANK for number range settingsControlling area – TACOClick on maintain group tabClick on controlling documents number ranges Double click on RKS - Enter statistical Key figures business transaction from not assigned columnClick on elements Group tabClick on SaveCome back wise



B) Statistical key figures Posting procedures (KB31N)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Actual posting → Statistical Key figures → Enter

Document date – 30-04-09 Posting date – 30-04-09Document header text – Telephone cost unit postingRec cct Statistical key fig Total Qty Dept A 300 1000 (Calls)Press enter key and Save

Planning value for statistical key figures ( KP46)

Path: easy access → Accounting → Controlling → Cost centre accounting → Planning → Statistical key figures → Change

Version – 0From period – 1 To Period – 1Fiscal year – 2009Cost centre - Dep AStatistical key figures - 300Select Form based Press F5 for Overview screenAssign 800 in Current plan value columnPress enter key and Save

Reports (S_ALR_87013611)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information system → Reports for cost centre accounting → Plan/ Actual Comparison → Cost centre Actual/ plan/ Variants

Controlling area – TACOFiscal year – 2009From period - 1 To Period – 1Plan version - 0Cost centre value – Dep ACost elements value – Telephone bill accountPress F8 for execute



MANNUAL COST ALLOCATION

Distribution and Assessments are the two important Manual cost allocation in SAP. This manual cost we are using for allocating the primary cost and secondary cost from one cost centre to another cost centre.

Go to KSB1 and check the cost centre value of Dep-A for salaries in the 1st period

Cost centre – Dep – ACost elements – SalariesPosting date – 01-04-2009 To 30-04-09Layout – 1SAPPress f8 for executeNow we can see cost centre value is 8000

Distribution

This distribution also we are using for allocate the primary cost from one cost centre to another cost centre through a distribution cycle.

Step1: CO Documents number range settings for distribution

Go to KANK for number range settingsControlling area – TACOClick on maintain group tabClick on controlling documents number ranges Double click on RKIV (Actual Overhead distribution) business transaction from not assigned columnDouble click on RKPV (Plan overhead distribution) business transaction from not assigned columnClick on elements Group tabClick on Save

Distribution Cycle Preparation (S_ALR_87005757)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Period end Closing → Current settings → Define distribution

Cycle – Salary accountStart date – 01-04-09Press enter keyText – Salaries DistributionClick on attach segments tabSegments name – Salary – Salary distributionSegment Header tab



Sender valuesSender rule - Posted amountShare in % - 100Select actual valuesReceiver tracing factor tabReceiver rule – Fixed percentageClick on Sender/ Receiver tabSendersCost centre – Dep –ACost elements – Salary AccountReceiverCost centre – Dep B Dep CClick on Sender value tabVersion – 0Receiver tracing factor

Percentage / Portion Dep B 25Dep C 25Press enter key and SaveCome back three times Click on yes

Distribution cycle run (KSV5)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Period endClosing → Single transactions → Allocation → Distribution

Period – 1 to – 1Fiscal year – 2008Select test runSelect details list tabCycle – SalaryPress enter key Press f8 for executeSelect Sender 1Click on Sender tab (Shift+F4)Come back Now select number of receiver 2 Click on Receiver tab (Shift+F5)Come back wiseClick on yes Deactivate test run and again press f8



Assessments

This assessment is also we are using for to allocate the cost from one cost centre to another cost centre

What is the difference between Distribution and Assessment

Distribution AssessmentIn this distribution we are allocating the In this assessment we are allocating the total Particular cost elements cost from one cost of a cost centre (All cost elements cost Cost centre to another cost centre of cost centre) from one cost centre to

Another cost centre

Creation of Secondary cost elements (KA06)

Path: Sap easy access → Accounting → Controlling → Cost elements accounting → Master data → Cost elements → Individual Processing → Create Secondary

Cost elements – SalaryValid from – 01-04-09 31-12-9999Click on master data tabName – AssessmentDescription – Assessment Cost elements Cost elements category – 42 (Assessments)Press enter key and Save

CO Documents number ranges settings

Go to KANK for number range settingsControlling area – TACOClick on maintain group tabClick on controlling documents number ranges Double click on KMPN – Manual cost allocation from not assigned columnDouble click on RKIU - Actual Overhead Assessment business transaction from not assigned columnDouble click on RKPU - Plan overhead assessment business transaction from not assigned columnClick on elements Group tabClick on Save

Go to KS01 create Dep D Cost centre under production departments

Go to F-02 or (FB50 for Multiple posting) following expenses for Dep D Cost centre on 30-04-09 Salaries – 2000Telephone – 2000



Electricity – 2000Printing and Stationary – 2000

Go to KSB1 Check the cost centre value in Dep D

Cost centre – Dep DCost elements – Keep blankPosting date – 01-04-09 30-04-09Layout – 1SAPPress f8 for execute Now total value is 8000

Now in this above 8000 Manually allocate 2000 to Dep A Cost centre

Manual Cost allocation (KB15N)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Actual posting → Manual cost allocation → Enter

Documents date – 30-04-09 Posting date – 30-04-09Period – 01 Document header text – Manual AssessmentsCost elements – SalaryAmount – 2000Sender Receiver Cost centre – Dep D Cost centre – Dep AClick on Save it

Now go to KSB1 check the values in Dep D

Cost centre – Dep DCost elements – Keep blankPosting Date – 01-04-2009 to 30-04-2009Layout - 1SAPPress F8 for execute Now the values is 6000

Now in this above 6000 allocate the 50% cost to Dep A 25% and Dep D 25% through a Assessment

Creation of Assessment Cycle (S_ALR_87005742)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Period end close → Current settings → Define assessment

Cycle – AssesStart date – 01-04-2009



Press enter keyText – Assessment cycleClick on attach segments tabSegment name – Asses (Assessment cycle)Assessment cost elements – SalaryReceiver tracing factorReceiver rule – Fixed PercentageClick on Sender/ Receiver tabSender Receiver Cost centre – Dep D Cost centre Dep A – Dep BClick on sender value tabVersion – 0Click on Receiver Tracing factor tabDep A 25%Dep B 25%Press enter key and SaveCome back three times Click on yes

Assessment Cycle Run (KSU5)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Period end close → Single function → Allocation → Assessment

Period – 1 to - 1Fiscal year – 2009Activate test runActivate Details list Cycle – AssesPress f8 for executeNow select Sender 1 click on Sender tabCome backSelect number of Receiver 2 click on Receiver tabCome back wiseClick on yes Deactivate the test run and again Press F8

ACCRUAL CALCULATION

This accrual calculation we are using for month end provision. It generate the documents only in CO. Cost element categories – 03

Go to KS01 create the following cost centres1. Department E Under production department.2. Bonus under administration department.



Go to FS00 create bonus account under expenses and update in to CO.cost element categories-03

CO document number range settings.

Go to KANK for number range settingsControlling area – TACOClick on maintain group tabClick on controlling documents number ranges Double click on KAZI (Actual Cost Centre Accrual) business transaction from not assigned column.Double click on KAZP (Plan Cost Centre Accrual) business transaction from not assigned column.Click on elements Group tabClick on SaveComeback wise

Maintain Overhead Structure (KSAZ)

Path : Spro → Img → Controlling → Cost element Accounting → Accrual Calculation → Percentage Method → Maintain Overhead Structure

Click on Create Overheads Structure fields (F7)Overhead Structure – TAST (any for digit)Description – Overhead Structure for bonus

Give the Row Base 10 (any) TA1 (any)

Press enter key Name – Salaries Click on Create FieldRow Base Overhead 20 TA2Press Enter Key Name – Bonus Dependency – KRS1 (Controlling Area)Click on Create Field Assign 10 To 10 in from and to column.From To Credit 10 10 TA3 (in front of the bonus line items)Press Enter Key Click on CreatePress Enter Key and save. (Tick Mark)Go to Bottom of the screen Select overhead structure of TASTClick on Assignment Tab Controlling Area – TACO



Select Actual Accrual Click on Continue field (Tick Mark)Valid From Valid To Overhead Structure 01 – 2008 12-2009 TASTPress enter key and SaveDouble click overhead structure – TASTClick on SaveSelect overhead structure tree TAST→ Open Controlling area Dailar box→ Select Actual Accrual Now go to environment in Menubar → Select baseClick on positionBase TA1 (Tick mark)Double click on TA1 key (Salaries)Cost elements SalariesPress enter key and SaveComeback Again Select Actual accrual Go to Environment in Menubar →Select overhead rate Click on positionOverhead rate – TA2 (Tick mark)Double click on TA2 keyValid from Valid to Actual overhead 01-2008 12-2009 10Press enter key and SaveComeback Again Select Actual AccrualGo to Environment in Menubar →Select credit Click on positionOverhead rate – TA3 (Tick mark)Double click on TA3 keyBusiness area Valid to Cost elements Cost center 01-2008 12-2009 Bonus BonusPress enter key and SaveComeback

Go to F-02 Post the following documents on 30-04-2008 Assign the Dep E Cost centre

Salaries Account To Cash

Accrual Calculation Procedures (KSA3)

Path: Sap easy access → Accounting → Controlling → Cost elements Accounting → Actual Posting → Accrual calculation



Select cost centre – Dep EPeriod – 1Fiscal year – 2009Select test runSelect Details list tabPress F8 for executeClick on next list level field (cltr+shift+F3)Comeback wiseDeactivate test runPress F8 for executeNote: For every month we should run this program

INTERNAL ORDERS

Internal Orders

An Internal order is a cost object used mainly for recording costs associated with certain events taking place within the company. The events are unique like marketing campaigns, repairs, trade exhibition etc. Unlike the cost centres where you typically post only the cost, you will be able to post the cost and revenue information to the internal orders. You can plan, monitor collect and settle the cost / revenue on internal orders. These internal orders we are using for view the specific task of cost. These are two types of internal order.

1- Statistical orders2- Real orders

Statistical orders Real orders Settlement is not possible Settlement is possible

Statistical orders

A statistical internal order is used to collect the cost for the purpose of information and reporting, as the costs collected on this order are never settled to a cost objects.

Creation of field status variants

Go to OBC4 for field status variantsClick on positionField status variants – FSTV (Tick mark)Select your field status variantsDouble click on field status group folderSelect G004Click on copy as (F6)Change the field status group in to G002Change the text in to Cost account and Internal ordersPress enter key



Double click on G002Double click on additional account assignmentsKeep cost centre, CO/PP orders as required entries Come back twise and SAVEComeback

Go to FS00 select telephone bill accountClick on change field Click on create/bank/interest tabChange field status group in to G002

Maintain number range for orders (KONK) Path: Same

Click on Maintain Group tabNow go to Groups in Menubar → Insert (F6)Text – Internal Orders number range for telephone billFrom number To Number 90201 90300Press enter keyGo to bottom of the screenSelect Internal order number range for telephone billDouble click on TBCD Telephone bill cost from not assigned column Click on elements group tabPress enter key and SaveComeback wisePress enter key and Save

Internal Order type Creation ( KOT2_OPA)

Path: Spro → Img → Controlling → Internal Orders → Order master data → Define Order type

Click on new entriesOrder category – 01 (Internal orders) (Tick mark)Order type – TBCD (Any 4 code) (telephone bill cost)Planning profile – 000001Object class – Overhead costSelect Release Immediately Press enter key and SAVE (Tick mark) (Tick mark)Comeback wise

Internal Orders Creation (KO01)

Path: Sap easy access → Accounting → Controlling →Internal Orders → Master data → Special function → Orders → Create



Order type – TBCDClick on master data tabDescription – Tel – 9847652968Business area – TAMUClick on Control data tabSelect Statistical Orders Press enter key and Save(Note reference number)

Like we can create any number of telephone account Paid telephone bill 1000 through cash on 30-04-09 Cost center – Dep A Internal Order – 9847652968

Go to F-02 Post the above documents

Documents date – 30-04-09 Type – SA Company code – TASTPosting date – 30-04-09 Period – 01 Currency – INRDocument header text – Telephone billsPost key – 40 Account – Telephone bill accountPress enter keyAmount - 1000Cost center - dept A Order – 9847652968Text – Telephone billPost key – 50 Account – Cash AccountAmount - * Business area – TAHYText - +Press enter key and Save

Display of internal Order Report (KOB1)

Path: Sap easy access → Accounting → Controlling → Internal Orders → Information System → Reports for Internal Orders → Line items → Orders Actual line item

Order – 9847652968Cost elements – Telephone billPosting date – 01-04-09 to 30-04-09Layout – 1SAPPress F8 for execute

Planning Internal Orders (KPF6)

Path: Sap easy access → Accounting → Controlling → Internal Orders → Planning → Cost and Activity inputs → Change

Version – 0From period - 1 To Period – 1



Fiscal year – 2009Order – Internal Orders Number (9847652968)Cost - Telephone billSelect form based Press F5 for Overview screenAssign 800 in total Plan cost columnPress enter key and Save

Reports – Internal Order/ Plan/ Actual/ Variants (S_ALR_87012993)

Path: Sap easy access → Accounting → Controlling →Internal Orders → Information systems → Reports for internal orders → Plan/ Actual / Comparison → Orders: Actual / Plan / Variants

Controlling area – TACO Fiscal year – 2009From period – 01 To Period – 01Plan version – 0Order value - Orders numberCost elements value – 40006Press F8 for execute

REAL ORDERS

A real internal order is always used to settle costs to the other cost objects. So even if you specify the real cost object while making a posting to the real order, the system will consider that cost object as a statistical one as the internal orders itself is a real cost objects.

Field Status Group creation ( OBC4)

Go to OBC4 for field status variantsClick on PositionField status variants – FSTVSelect your field status variantsDouble click on field status group folderSelect G004Click on copy as (F6)Change the field status group in to G010Change the text in to Internal ordersPress enter keyDouble click on G010Double click on additional account assignmentsKeep cost center, CO/PP orders as required entries Come back twise and SAVEComeback

Go to FS00 Create Petrol expenses account (Primary cost elements) Under Expenses with field status group G010 and Update in to CO



Now we are going to create s secondary cost elements

Secondary Cost elements Creation (KA06)

Path: Sap easy access → Accounting → Controlling → Cost elements accounting → Master data → Cost elements → Individual Processing → Create secondary

Cost elements – 500002 (Settlements)Valid from – 01-04-2009 To – 31-12-9999Click on master dataName – Settlements Description – Settlements Cost elementsCost elements category – 21 (Internal Settlements)Press enter key and Save

Maintain Allocation Structure (OK06)

Path: Spro → img → Controlling → Internal Orders → Actual Posting → Settlements → Maintain allocation structure

Click on new entriesAllocation structure Text VH Vehicle allocationPress enter key Now select your allocation Structure Double click on Assignments FolderClick on new entriesAssignment Text PET Petrol ExpensesPress enter key and SaveNow select your Assignments Double click on Source folderFrom Cost elements Petrol elements Double click on settlements Cost elements folderClick on new entriesReceiver Category Settlements Cost elements CTR (Cost center) 50002 (Settlements)Press enter key and SaveComeback Six times

Maintain Settlements Profile (OK07)

Path: Same Double click on maintain settlements profiles



Click on new entries Settlements profile – STPL (Any code) Vehicle settlement profileAllocation Structure – VHDefault object type – CTRSelect % SettlementsSelect Amount SettlementsValid Receivers Cost center – Settlements Required Other ParametersDocuments type – SAMaximum of Dist rece – 999Residence time – 12Comeback twise

Maintain number range for Settlements Documents (KO8N)

Path: Same

Click on maintain group tab (F6)Select standard accounting documents Double click on TACO Controlling area from not assigned columnClick on elements group tabClick on SaveComeback twise

Maintain Number ranges for Orders (KONK)

Path: Same

Click on maintain Group tabNow go to Groups in menubar → Insert (F6)Text – Internal Orders number range for Vehicle

From number To Number 90301 90400Press enter keyGo to bottom of the screenSelect Internal order number range for VehicleDouble click on VHC Vehicle order type from not assigned column Click on elements group tabPress enter key and SaveComeback wise

Internal Order type Creation (K0T2)

Path: Spro → Img → Controlling → Internal orders → Orders master data → Define orders type



Click on new entriesOrder category – 01 (Tick mark)Order type – VHCSettlements profile - STPLPlanning profile – 000001Object class – Overhead CostSelect Release immediatelyPress enter key and SaveComeback twise

Internal Orders Creation (KO01)

Path: Sap easy access → Accounting → Controlling → Internal orders → Master data → Special function → Order → Create

Order type - VHCClick on master data tabDescription – Vehicle number 768Business area – TAMUObject class – OverheadClick on Settlement rule tabCategory Settlement receiver Percentage CTR DEP A 50CTR DEP B 30CTR DEP C 20Press enter key and Save

FI Documents postings

Go to F-02 Paid petroleum expenses 10000 for vehicle 768 through cash on 1-04-09

Documents date – 1-04-09 Type – SA Company code – TASTPosting date – 1-04-09 Period – 01 Currency – INRDocument header text – Petroleum expenses paidPost key – 40 Account – Petroleum expenses accountPress enter keyAmount - 10000Order - Vehicle no 768Text – Petroleum expenses paidPost key – 50 Account – Cash AccountAmount - * Business area – TAHYText - +Press enter key and Simulate and Save





Order – Vehicle No-768Cost elements – Petroleum expensesPosting date – 01-04-09 to 30-04-09Layout – 1SAPPress F8 for execute

CO Documents number ranges settings for Settlements

Go to KANKControlling area - TACOClick on maintain group tab (F6)Select controlling documents number ranges Double click on KOAO (Actual settlements)Double click on KOAP (Plan settlements)Click on elements group tabPress enter key Click on SaveComeback twise

Settlements (KO88)

Path: Sap easy access → Accounting → Controlling → Internal orders → Period-end Closing → Single function → Settlements → Individual Processing

Order – Vehicle no -768Settlements period – 1Fiscal year – 2009Activate Test runPress F8 for executeClick on details list fieldCome back wiseDeactivate Test run and again Press F8 for execute



Order – Vehicle NO-768Cost elements – SettlmentsPosting date – 01-04-09 to 30-04-09



Layout – 1SAPPress F8 for execute

BUDGETING AND ACTIVITY CONTROL

Budgeting is nothing but just like a planning. A small difference between budgeting and Planning. Planning we are using for Short term Purpose (Monthly) but budgeting we are doing for long term purpose (Yearly)

Path: Spro → Img → Controlling → Internal orders → Budgeting and availability control

a) Maintain Budget profile (OKOB)

Double click on Maintain budget profileClick on new entriesBudget profile – BUDTEL (Any code)Text – Budget profile for Telephone billTime framePast – 2Future – 3 Activate Total value Activate Annual valuesExchange rate type – MActivity type – 1 (automatic activation)Decimal place – 2Press two times enter key and SaveCome back wise

Double click on Maintain budget profile in order type (KOAB)

Click positionOrder type – VHC (Tick mark)Double click on VHC Order typeBudget profile – BUPRPress enter key and SaveCome back wise

b) Maintain number ranges for budgeting (OK11)

Path: Same

Click on change intervalsNote: Here no need for define the number range because by default we have some number range. The number range is 4



Click on SaveComeback wise

c) Define Tolerance limit for availability control (OKOC)

Path: Same

Click on new entriesContr area Profile Tolerance group Action Control Usage TACO BUPR + + 1 (Warning msg) 80TACO BUPR + + 2 85TACO BUPR + + 3 90Press enter key and SaveCome back wise

d) Specify exempted Cost elements from Availability control (OBTK)

Path: Same

Click on new entriesContr area Cost elements TACO 40005 (Salary) you can any cost elementsPress enter key and SaveComeback wise

e) Maintain Budget Manager (OK14)

Click on new entries Control area Order Object class Username TACO VHC Overhead UbaidPress enter key and SaveComeback wise

Internal Order Creation (KO01)

Path: Path: Sap easy access → Accounting → Controlling → Internal orders → Master data → Special function → Order → Create

Order type - VHCClick on master data tabDescription – Tel Number -9618941802Business area – TAMUClick on Control data tabActivate Statistical OrderClick on Save



Budget posting for Internal Order (KO22)

Path: : Sap easy access → Accounting → Controlling → Internal orders → Budgeting → Original budget → Change

Order – Tel – 9618941802Click on Original budget tabPeriod Budget Overall 600002006 100002007 100002008 100002009 100002010 100002011 10000Press enter key and SaveCome back

GL Documents Posting

Paid Telephone bill 8700 through bank assign the internal order 90221 (tel – 9618941802)Cost center – Dep A

Mail views

Path: Sap easy access → Office → Work place (SBWP)Double click on InboxSelect budget control order – 90221 (Tel -9618941802)

COMMITMENT MANAGEMENTS

In FI commitment refers to certain Commitment, Liabilities like the outstanding orders, open purchase orders, bill liability etc. In CO the Commitment refers to the contractual or scheduled commitments in CO production orders, Internal orders, Maintenance orders, Production orders, Sales Orders, Network, Cost centres etc. that has not yet been passed on to FI but will result in actual expenditure in the future.

Maintain Financial Management Area (OF01)

Path: Spro → Img → Enterprise structure → Definition → Financial Accounting → Maintain Financial Management area

Click on new entries



FM Area FM Area text FM Area currency FMGT Financial Management Area for TAST INRPress enter key and Save

Note: The FM area Currency is need to be same with Currency assigned to the company code

Assign Company code to FM area (OF18)

Path: Spro → Img → Enterprise structure → Assignment → Financial Accounting → Assign company code to FM areaClick on PositionCompany code FM Area TAST FMGTPress enter key and Save

Assign Fiscal year Variant to FM area (OF32)

Path: Spro → Img → Public sector Management → Funds management government → Basic setting → Fiscal year variant → Assign fiscal year variants to FM Area

Click on positionFM area Fiscal year variant FMGT TEPress enter key and Save

Assign field status variants to company code (FMUV)

Path: Spro → Img → Controlling → Cost centre Accounting → .Commitment and Fund managements → Field control for fund managements → Assign filed status variant to company code

Click on Position Company code – TASTField Status variants – FMRE (earmarked fund status variants)Press enter key and Save

Commitment item creation (FMCIA)

Path: Sap easy access → Accounting → Public sector managements → Fund managements → Master data → Account assignment elements → Commitment item → Individual Processing

FM Area – FMGT (tick mark)Commitment item – 1000 (Any code)Click on create field Name – PurchaseDescription – Purchases



Financial transaction – 30 (Revenue, Expenses, Asset, Inventory stock) Commitment item category – 3Press enter key and Save

Assign Commitment item to GL

Go to FS00 Select Purchases Account and click on change field Click on create/ bank /interest tabCommitment item – 1000 Press enter key Save

Commitment Item Posting (FMZ1)

Path: Sap easy access → Accounting → Controlling → Cost elements Accounting → Actual Posting → Funds commitment → Create

Documents type – CO (CO fund commitment)Document date – 31-04-09 Type – DR Company code – TASTPosting date – 31-04-09 Period – 01 Currency – INRDocuments header text – PurchasesOriginal amount – 500000Commitment item – 1000 (Purchase)GL – Purchase account Business area – TAHYPress enter key and Save

Note: Before going to posting the Commitment account update with Purchase account in to CO

Field Status group settings (OBC4)

Go to OBC4 Field status variants Click on PositionField status variants - FSTVNow select your Field status variants Double click on field status groupDouble click on G004 Double click on Additional Assignment groupKeep Commitment item as Optional entryClick on Page down key in keyboardKeep Earmarked funds as Option entryPress enter and Save

Purchase Documents Posting

Purchase 100000 Goods from Vendor on 01.10.2009

Go to F-43 Post the documents



Document date – 31-04-09 Type – DR Company code – TASTPosting date – 31-04-09 Period – 01 Currency – INRDocuments header text – PurchasesPostkey – 31 Account - Vendor AccountAmount – 100000Text - PurchasePostkey – 40 Account – Purchase AccountAmount- * Text - + Business area – TAHYClick on More fields bottonEarmarked funds – Select Earmarked fundPress enter key and Save

Display Fund Commitment Status (FMZ3)

Path: Sap easy access → Accounting → Controlling → Cost elements Accounting → Actual Posting → Funds commitment → Display

Document Number – Give Document numberPress enter keyClick on Consumption tab

PROFIT CENTER ACCOUNTING

This profit centre Accounting we are using for view the profit of a particular product wise, Product group wise, location wise etc. (If business area is not maintain in FI records/ Division wise etc) At the same time you prepare the profit and loss account and Balance sheet.

Set controlling area (OKKS)

Path: Spro → Img → Controlling → Profit centre accounting → Basic settings → Set controlling area

Controlling area – TACOClick on save

Maintain Controlling area settings (0KE5)

Path: Same as up to basic settings → Controlling area settings → Maintain controlling area settings

Standard hierarchy – TAST_PF (any)Profit centre local currency type – 20 (Controlling area currency)Profit centre local currency – INRPress enter key and Save



Comeback

Create Dummy profit Centre (KE59)

Path: Spro → Img → Controlling → Profit centre accounting → Master data → Profit centres → Create Dummy profit centre

Double click on create Dummy profit centreDummy profit centre – DummyClick on basic data tabName – DummyDescription – Dummy profit centrePerson reasonable – UbaidProfit centre group – TAST_PFPress enter key and Save

Set Control parameters for Actual data (1KEF)

Path: Same as up to Profit centre accounting → Basic settings → Controlling area settings → Activate direct posting → Set control parameters for actual data


From year Line item Online transfer 2009 Tick mark Tick markPress enter key and SaveCome back wise

Maintain Plan Version (OKEQ)

Path: Same as up to activate direct posting → Plan version → Maintain plan version

Select 0 plan versionDouble click on settings for profit centre accounting folderClick on new entries Year Online Transfer Line items Exchange rate type 2009 Tick mark Tick mark MPress enter key and SaveCome back three times

Define number range for local Documents (GB02)

Path: Same as up to Profit centre accounting → Actual Posting → Basic settings actual → Define number range for local documents

Click on maintain group tab (F6)



Activate click on Actual documents from direct posting check boxGo to Intervals in Menubar → Select Maintain Company code – TAST (tick mark)Click on insert IntervalsYear From number To number 2009 1 10000Press enter key and SaveComebackActivate click planned documents from direct posting check boxGo to intervals in Menubar → Select maintainCompany code – TAST (Tick mark)Click on insert intervalsYear From number To Number 2009 100001 200000Press enter key and SaveCome back three times

Creation of Profit Centre (KE51)

Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Master data → Profit centre → Individual Processing → Create

Profit centre – Steel (Product wise)Click on Master data tabAnalysis period – 01-04-09 To 31-12-9999Name – SteelLong text – SteelPerson responsible – UbaidProfit centre group – TAST_PFPress enter keyClick on Activate Field (No need for Save)

Creation of Cost Centres

For profit centre directly we post revenues values but its not possible to post cost values. If you want to post cost values for profit centres we create a cost centre in cost centre accounting through this cost centre we are posting cost.

Go to KS01 Create cost centre Steel under Production departments

Cost centre – SteelValid from – 01-04-09 To – 31-12-9999Click on Master data tabName – SteelDescription – SteelPerson responsible – Ubaid



Cost centre Category – 01Hierarchy area – ProdBusiness area – THAYCurrency – INRProfit Centre – SteelPress enter key and Save

Revenue Elements Creation

Go to FS00 Create the Sales of Steel account under the incomes with field status group G029 and Update the account in to CO. Cost elements category – 11

Maintain automatic account assignments of Revenue elements (OKB9)

There we assign what are the revenue we are posting to profit centre those elements we are assigning here.

Path: Spro → Img → Controlling → Profit centre accounting → Actual posting → Maintain automatic account assignments of revenue elements.

Click on new entries Company code Cost elements Account assignments details TAST Sales of Steels a/c 2 (business area is mandatory)Select your Company code Double click on Details per business area Click on new entriesBusiness area Profit centre TAHY SteelPress enter key and SaveComeback four times

Choose additional balance sheet and Profit and Loss account

Path: Same

Choose Accounts (3KEH)

Click on new entries Account from Account to Profit centre 100001 300000 SteelPress enter key and SaveClick on Profit centre Deter: Details tabClick on create field (F5)Description – Profit centre balance sheet business area wiseSource fieldGSBER – Business area



Click on maintain rule values tabClick on yesClick ON/OF tabAccount Number To Account Numb Business area Profit centre 100001 300000 TAHY SteelPress enter key and SaveCome back four times

Account Group Creation (KDH1)

Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Master data → Account group → Create

A) Acct Group – PL-ItemsClick on Hierarchy field (F6)PL Items – Profit and Loss itemsClick on Account tabPL Items – Profit and Loss Items→ 300001 - 500000Press enter key and SaveCome back three times

B) Acct Group – BS_ItemsClick on Hierarchy Field (F6)BS_items – Balance sheet itemsClick on Account tabBS-items→ 100001 - 300000Press enter key and SaveComeback wise

Define Plan values for PL items (7KE1)

Path: Sap easy access → Accounting → Controlling → Profit centre Accounting → Planning → Cost/ Revenues → Change

Version – 0From period - 12 To – 12Fiscal year – 2009Company code – TASTProfit centre – SteelAccount Group – PL itemsSelect form based Press F5 for Overview the screenAccount Numb Text Reporting Currency 3000014 Sale of Steel a/c 80000



400005 Salaries a/c 8000Press enter key and SaveNote: Like we can assign the plan value of every PL items

Define Plan Value for Balance sheet items (7KE3)

Path: Sap easy access → Accounting → Controlling → Profit centre Accounting → Planning → Balance sheet accounts → Change

Version – 0From period - 12 To – 12Fiscal year – 2009Company code – TASTProfit centre – SteelAccount Group – BS_ itemsSelect form based Press F5 for Overview the screenAccount Numb Text Reporting Currency 100009 SBI Loan a/c 100000200008 SBI Account a/c 100000Press enter key and SaveNote: Like we can assign the plan value of every BS items

Actual Values Postings

Revenue Postings Go to F-22 Post customer invoice with 100000 on 31-04-09

Customer Account To Sales of Steel a/c

Document date – 31-04-09 Type – DR Company code – TASTPosting date – 31-04-09 Period – 01 Currency – INRDocuments header text – Customer invoice postingPostkey – 01 Account – Customer AccountPress enter keyAmount – 100000 Business area – TAHYText – Customer invoice posting Post key – 50 Account – Sale of Steel accountPress enter keyAmount - *Text - + Business area – TAHYPress enter key Simulate and Save



Cost posting

Go to F-02 post the following Documents on 31-04-09 and Assign the Steel cost centre

Salaries account 10000 To Cash 10000

Profit Centre PL Report (S_ALR_87013326)

Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Information systems → Reports for Profit centre accounting → Interactive Reporting → Profit centre group: Plan/Actual/Variance

From Period – 12To period – 12Fiscal year – 2009Plan version – 0Profit centre values – SteelProfit + Loss Values – Click on the arrow Mark in front of the P+L valuesAssign Single value column

300014400005

Press F8 for execute

Profit Centre wise Balance sheet (S_ALR_87013336)

Path: Same as up to Interactive Reporting → Profit centre group: Profit centre group: Balance sheet account Plan/Actual/Variance

From Period – 12To period – 12Fiscal year – 2009Plan version – 0Profit Centre Value – SteelClick on the (Arrow mark) in front of the Balance sheet value Assign 1000920007Press F8 for copy and press F8 for execute

PROFITABILITY ANALYSIS (CO-PA)

What is the functionality of a PA Module?

PA Module is the most important when it comes to analysis the result of the organization.



In this module we basically collect the revenues from the sales order cost from production order, cost centre, internal orders and analysis there results.

The interesting part about this module is that when it collecting the cost and revenue at the same times it also collect the characteristics associated with the cost and revenue

Using PA Module we can find out the following things…1- Profit of a certain product2- Profit of a certain products in certain region3- Profit of a certain products in certain region by certain customers4- Profit of certain products in certain region by certain sales person that mean we can view

the products for the number of parameters at a time

What is mean by operating concerns?

The operating concern is the highest module in profitability analysis. The operating concern is assigned to controlling area with in the operating concerns all the transaction of profitability analysis are started.

What are the characteristics and value fields?

Value fields

In the operating concern there are two things are basically defined

a) Characteristicsb) Value fields

Characteristics

Characteristics are nothing but those accepts on which we want to breakdown the profit classically surcharge, region, products, product z, sales person etc.

Value fields

Values fields are nothing but the values are associated with this characteristics. Once we defined the characteristics and values are updated in the table..Once we have capture the all cost and revenues how do u analyses them?By analyses the report writes using the report writer functionality in SAP.

Define operating concerns (KEA0)

Path: Spro → Img → Controlling → Profitability analysis → Structure → Define operating concern → Maintain operating concerns



Operating concern – TAST (Any code)Click on Create fieldsDescription – Operating concerns for TASTSelect costing-basedSelect Account-basedClick on Attributes tabOperating concern currency – INRCompany code currency – (Tick mark)Fiscal year variants – V3 (Standards)Press enter key and Save.

Click on Data structure tabClick on create filed under data structure tabSelect KMVTNR – Sales employee characteristics from transfer from column tab and click on left tabClick on value fields tabSelect VV010 – Revenue, VV140 – Cost of goods sold value fields from copy from column select click on left arrow

Now go to Data structure in Menubar → Select SaveNow again go to Data structure in Menubar select Active Comeback and click on yesIgnore the warning messagesComeback

Define profitability segments characteristics (KEQ3)

Path: Same

Characteristics Description Costbased+Acc ARTNR Products Select radio bottonKNDNR Customer Select radio bottonPress enter key and SaveComeback

Assign controlling area to operating concerns (KEKK)

Path: Spro → Img → Enterprise structure → Assignments → Controlling → Assign controlling area to operating concerns

Click on positionControlling area – TACO (Tick mark)Operating concern – TASTPress enter key and SaveComeback



Determine number ranges for actual postings (KEN1)

Path: Spro → Img → Controlling → Profitability analysis → Flow of actual values → Initial steps → Define number ranges for actual postings

Operating concern – TASTClick on maintain groupClick on generated group check box (Tick mark)Go to interval in Menubar → Maintain Here system generates some default number you can use this or create newClick on SaveComeback three times

Maintain assignment of SD condition to CO-PA Value fields (KE4I)

Path: Spro → Img → Controlling → Profitability analysis → Flow of actual values → Transfer of billings documents → Assign value fields

Double click on Maintain assignments of SD Condition to CO-PA Value fieldsClick on new entriesCondition type Value fields PR00 VV010 (500)VPRS (Cost of goods sold) VV140 (400)Press enter key and SaveComeback twise

Maintain PA Transfer structure for direct postings (KEI2)

Path: Same as up to flow of actual values → Direct postings from FI/MM → Maintain PA transfer structure for direct postings

Select FI (Financial account to CO-PA)Double click on Assignments line folderSelect 20 – direct revenues from FIDouble click on Source folderFrom – 300001 - 400000Double click on value fields folderClick on new entries Quanty / Value Fixed indi Value fields 1 Value fields 1 VV010 (Revenues)Press enter key and SaveDouble click on Assignments linesSelect 10 – Direct cost from FIDouble click on source folderFrom – 400001 - 500000



Double click on value fields folderClick on new entriesQuanty / Value Fixed indi Value fields 1 Value fields 1 VV140 Press enter key and SaveComeback four times

Activate profitability analysis (KEKE)

Path: Same as up to flow of actual values → Activate-profitability analysis

Click on positionControlling area – TACO (Tick mark)Activate status4 – Components active for both type of PAPress enter key and Save.

Sales Order creation

Creation of Sales Order

Path: Sap easy access → Logistics → Sales and Distribution → Sales → Order → Create (VA01)

Order type – ORSales organization – TASODistribution channel – DRDivision – STPress enter keySold to party – Customer accountPO Number – 0001 (any)Reg delivery date – 02-04-2009Delivery plant – TAPLPayments terms – 0001Item Material Order Qty 10 TAF8MC 1Press two times enter key Select item 10Select go to in Menu bar → Item → Condition Check the values and TaxClick on shipping tabCheck the shipping pointNote the sales order number 11800



Goods Deliver

Path: Same as up to Order → Subsequent function→ Outbound delivery (VL0IN)

Shipping point – TASPDate – Current dateOrder – 11800Press enter key Select 10Click on Picking tabAssign 1 in the Picked quantity columnClick on Post Goods issue tabNote the delivery documents number – 80015001

Display of Documents

Now Go to Outbound delivery in Menu bar → Display Outbound delivery – 80015001Press enter keyClick on Documents flow field (F7)Select Goods issueClick on display documents tabClick on Accounting Documents tabDouble click on Accounting Documents

Billing (VF01)

Path: Same

DocumentsDelivery documents number – 80015001Click on SaveNote the billing documents number – 90036105

Billing Documents update in FI ( VF02)

Go to VF02 for the change billing documents Billing documents – 90036105Click on flow field (Release to Ac)

CO-PA Report Generation

Path: Spro → Img → Controlling → Profitability analysis → Information system → Report components → Define forms → Define forms for profitability report (KE34)

Double click on create forms



Form – TAST (Any) from from copaClick on create fieldsSelect Operating concern currency (Tick mark)Double click on Row 1Select value fields with characteristics (Tick mark)Value fields – RevenueClick on confirmDouble click on Row 2Select value fields with characteristics (Tick mark)Value fields – Cost of goods soldClick on confirmDouble click on Row 3Select Formula (Tick mark)

Click on Y001 – Revenue Click on

Click onY002 – Cost of goods sold Short – Net profitClick on copy short text (Tick mark)Double click on column 1Select characteristics (Tick mark)Select plant / Actual indicatorClick on ←

FromAssign 0 (Actual data)Click on confirmClick on SaveNow go to editing in Menubar → General data selection → General data selectionSelect record type, period / yearClick on ←

From To For record type select from column B FPeriod / year click on variable ON/OF Check box in from column Local variable – 1 (Tick mark)Click on variable ON/OF Check box in to ColumnLocal variable – 2 (Tick mark)Click on confirmNow go to extras in Menubar → Variable → Variable definition

Description1 – From period2 - To period / Year (Tick mark)Press enter and SaveComeback wise

Create Profitability Report


-


Path: SameDouble click on create Report - TAST COPA ReportSelect Report with forms – TASTClick on Create fieldsSelect Customers, Distribution, Channel, Division, Plant, Sales organization, ProductClick on ← Click on Output type tabSelect Classical drilldownSelect Available on selection screenClick on Save (Tick mark)Press F8 for executeFrom Period/ year - 01-2009To Period/ Year – 12-2009Press F8 for execute

PRODUCT COSTINGS

Its product costing we are using for value at the inventory data flow from FICO, MM, PP Module

Cost sheet format for finished Goods

Raw-material - *****Raw-material overhead rate - *****Production cost - *****

Cost of manufacturing - *****

Add Selling and Administration expe- *****

Cost of Goods sold - *****

Ho you calculate the production cost

Production cost values

Salaries - 200000Wages - 500000Rent - 20000

720000

In our organization we have 100 machines all this machine we are using 24 hours in every period

Calculate the machines hours



100*24*30 = 72000 hours

Machine hour rate calculate

Total Production cost - 720000Total Machine hour per month - 72000Machine Per hour rate = 10

Costing sheet for TAMFG01 (Finished Goods)

TAMRW01 (Raw-material) - 75TAMRW02 - 100Raw-material OH - 175Add 10% OH Raw-material - 17.5Add 10% Machine cost (5*10) - 50

Cost of manufac value - 242.5Add Selling and Admin Expenses -Creation of Secondary cost elements (KA06)

1- Overhead cost elements 2- Activity cost elements

Path: Sap easy access → Accounting → Controlling → Cost element accounting → Master data → Cost elements → Individual processing → Create secondary

Cost elements – 1100000 (Any)Valid from – 01-04-2009 to 31-12-9999Click on Master data tabName – Raw-material OHDescription – Raw-material OHCost element category – 41 (OH rate)Press enter key and SaveCost elements – 1200000 (Any)Valid from – 01-04-2009 to 31-12-9999Click on Master data tabName – Activity cost elements Description – Activity cost elementsCost elements category – 43 (Internal allocation)Press enter key and Save

Creation of Activity types (KL01) (For Machine hours)

Path: Sap easy access → Accounting → Cost centre accounting → Master data → Activity type → Individual processing → Create



Activity type – MACValid from – 01-04-2009 to 31-12-9999Click on Master data tabName – Machine hoursDescription – Machine hoursActivity unit – H (Hours)CCTR-Category - * (For all cost elements)ATYP Category – 1 (Manual entry, Manual allocation)Allocation Cost elements – 1200000 (Activity cost elements)Press enter key and Save

Creation of Cost centre (KS01)

Go to KS01 Create the following Cost centre under Production departmentsDepartment – GDepartment – H

Define Overhead keys (OKOG)

Path: Spro → Img → Controlling → Product cost controlling → Product cost planning → Basic settings for material settings → Overhead → Define overhead keys

Click on new entriesOverheads Description OHA RM overhead keyPress enter key and SaveComeback

Define Overhead Groups (OKZ2)

Path: Same

Click on new entries Valuation area OH Group OH key Name of OH Group TAPL (Plant) OHG OHA RM OH GroupPress enter key and SaveComeback wise

Define Calculation base (KZB2)

Path: Same as up to Overhead → Costing sheet components → Define calculation bases

Click on new entriesBase Name RA Raw-materialPress enter key and Save



Now Select RADouble click on Details folderControlling area – TACOClick on SaveClick on new entriesFrom cost elements To cost elements 4000001 4000100Press enter key and SaveComeback three timesClick on new entriesBase Name RB Production costPress enter key and SaveNow Select RBDouble click on Details folderControlling area – TACOClick on SaveClick on new entries

From cost elements To cost elements 4000101 40002001200000 1200000Press enter key and SaveComeback four times

Define Percentage Overhead rate

Path: Same

Click on new entriesOverhead rate Name Dependency RC Raw-material OH rate D010 (OH Type/OH Key)Press enter key and SaveNow select RCDouble click on Details folder (tick mark)Click on new entriesValid from To Co area OH Type OH Key Percentage 01-04-2009 31-12-2010 TACO 2 (Plan) OHA 1501-04-2009 31-12-2010 TACO 1 (Actu) OHA 10 Press enter key and SaveComeback four times

Define Credits

Path: Same



Click on new entriesCredits Name RD RM Credit keyPress enter keyNow select RDDouble click on DetailsControlling area – TACOClick on SaveClick on new entriesValid to Cost elem Fix % Cost centre 31-03-2010 1100000 100 Dep – HPress enter key and SaveComeback four times

Define costing sheet (KZS2)

Path: Same as up to Overhead → Define costing sheet


Cost sheet Description COST (Any) Cost sheet for TASTPress enter key and SaveDouble click on Costing sheet rows folderClick on new entriesRow Base Overhead Description From To row Credit 10 RA 20 RC 10 10 RD30 RB40 Cost of Manuf 10 30Press enter key and SaveComeback four times

Assign Costing sheet to costing variants (OKKN)

Path: Spro → Img → Controlling → Product cost controlling → Product cost planning → Material cost estimates with quantity structure → Defining costing variants

Select PPC 1 – Structured cost Est (mat)Click on Details fieldClick on valuation variants tabClick on Create fieldClick on new entriesIn plant – TAPLPress enter key and SaveComeback



Select 001 – TAPL Valuation variantsClick on Details bottonClick on Overhead tabCosting sheet - COST Costing sheet for TASTCosting sheet – COST Costing sheet for TASTClick on SaveComeback four times

Define Cost components structure (OKTZ)

Path: Same as up to Product cost planning → Basic settings for Material costing → Define cost components structure

Select 01 Cost components structure Double click on Cost components with Attributes folderSelect 01 - 10 - Raw-materialDouble click Assignment : Cost components folderClick on new entries

Cost comp structure Chrt ac From cost To cost Cost Comp 01 CHAC 4000001 400099 10

Press enter key and SaveDouble click on Cost components with Attributes folderSelect 01 - 80 Material OverheadDouble click Assignment : Cost components folderClick on new entriesCost comp structure Chrt ac From cost To cost Cost Comp

01 CHAC 1100000 1100000 80Press enter key and SaveDouble click on Cost components with Attributes folderSelect 01 - 50 - Production machineDouble click Assignment : Cost components folderClick on new entriesCost comp structure Chrt ac From cost To cost Cost Comp

01 CHAC 4000100 4000199 5001 CHAC 1200000 1200000 50

Press enter key and SaveDouble click on Cost Components structure folderClick on Active check box in front of 01 (Tick mark)Click on Save

Creation of person responsible for work center (OP10)

Path: Spro → Img → Production → Basic data → Work centre → General Data → Determine person responsible



Click on new entriesPlant Person responsible Person responsible for work centre TAPL UBAID UBAIDPress enter key and SaveComeback wise

Define MRP Controller (OMD0) (Material requirement planning)

Path: Same as up to Production → Material requirements planning → Master data → Define MRP Controllers

Click on new entriesPlant – TAPLMRP Controller – B – B (Any)Press enter key and Save

Define Floats (OMDC)

Path: Same as up to material requirements planning → Planning → Scheduling and Capacity parameters → Define floats


Plant Margin Opening perce FI Before FI After Ref-Per TAPL TAMR (Any) 2 2 2 2Press enter key and SaveComeback wise

Define Production Scheduler (OPJ9)

Path: Same as up to Production → Shop floor control → Master data → Define Production scheduler

Click on new entriesPlant Produc scheduler Description TAPL C (Any) CPress enter and SaveComeback wise

Cost Centre Planning (KP06)

Go to KP06

Version – 0From Period – 2 To Period – 2Fiscal year – 2009



Cost centre - Dep – GCost elements – Salary AccountSelect form basedPress F5Plan fixed cost 720000Press Save

Planning of Machine hours (KP26)

Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Planning → Activity output/price → Change (KP26)

Version – 0From Period – 2 To Period – 2Fiscal year – 2009Act type - MACSelect form basedPress F5Planned Activity 72000Press enter and Save

Machine hour rate Calculation (KSPI)

Path: Same as up to Planning → Allocation → Price calculation

Cost centre group – ProdVersion – 0From period – 2 to - 2Fiscal year – 2009Select Test RunSelect Detail listPress F8 for execute and SaveGo backDeactivate the Test run check box and again Press F8 for execute Click on Save

Material Creation (Raw-material)

Go to MM01 Create 2 Material TARM01, TARM02

Material – TARM01Industry sector – Mechanical engMaterial type – ROH



Select views tabSelect Basic data 1, Purchasing, General plan data / Storage 1, Accounting 1Organizational level tabPlant – TAPLStorage location – HYD (Tick mark)Material – TARM02 – Raw-materialBase unit – Kg Material Group – STClick on Purchasing tabPurchasing group – TAPRClick on Accounting 1 tabValuation class – 3000Price control key – V (Moving price)Moving Price – 100Press enter and Save.

New Material Creation (Finished Goods)

Material – TAFG01Industry sector – Mechanical engMaterial type – FERTSelect views tabSelect Basic data1, MRP1, MRP2, Work scheduling, General plan data / Storage1, Accounting1, Costing1.Organizational level tabMaterial – Finished ProductsBase unit – Kg Material Group – STClick on MRP1 tabMRP Type – PD (Standard)MRP Controller - BLot size – ExClick on MRP2 tabSchedule margin key – TMRClick on Work Scheduling tabProduction scheduler – CClick on Accounting1 tabValuation class – 7920Standard price – 300Click on Costing1 tabOverhead group – OHGClick on SaveAvailability check – KP (No check)Again Save it.



Creation of bill Material (CS01) (BOM)

Path: Sap easy access → Logistics → Production → Master data → Bill of Material → Bill of Material → Material BOM → Create

Material – TAFG01 Plant – TAPLBOM Usage – 1Press enterComponents Qty TARW01 1TARW02 1Press enter key and Save

Creation of work centre (CR01)

Path: Same as up to Master data → Work centre → Work centre → Create

Work centre – Dep – GWork centre category – 0001 (Machine)Click on Basic data tabWork centre – Department – GPress enter Person responsible – UBAIDUsage – 009 (All task)Standard valuation Key – SAP1 (Normal Production)Click on Costing tabStart date – 01-04-2009Cost centre – Dep – GActivity Description Activity type Activity unit Formulas

Machine MAC H (Hours) SAP002 (Machine time)Press enter and Save

Creation of Routings (CA01)

Path: Same as up to Master data → Routing → Routings → Standard routings → Create

Material – TAFG02Plant – TAPLPress enter keyUsage – 1Status – 4Click on operation tabWork centre Control key Dep – G PP01 (In house Production)Select this line item



Double click on 0010Standard value Unit

Machines 5 HPress enter and Save

Creation of Cost estimates with Quantity structure (CK11N)

Path: Sap easy access → Accounting → Controlling → Product cost controlling → Product cost planning → Material costing → Cost estimates with quantity structure → Create

Material – TAFG02Plant – TAPLCosting DataCosting variants – PPC1Costing Version – 1Click on Dates tabCosting date from – Current DateCosting Date to - 31-12-9999Quantity structure date – Current DateValuation date – Current datePress enter key


78723CO

Documents

maintain budget

press enter

statistical

field status

additional

entries quanty

master data

maintain group