Integartion OBYC SAP FI-MM

Integration

IntegrationOrganization structure

Company

In SD: Combination of sales Organization, distribution channel & division they call at as

One sales area.

Movement types: posting keys in FI

101 Material receipt against purchase order/production

102 Reversal of 101

201 Issue to cost centre (stores of all departments)

202 Reversal of 201

261 Issue to orders (Raw material shows)

262 Reversal of 261

521 Material receipt with out production order

522 Reversal of 521

561 Opening stock talking

562 Reversal of 561

601 Delivery

602 Reversal of 601

Process key (Transaction keys)These are system defined keys

1). BSX Inventory postings

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

(I.R Invoice receipts)

3). PRD price difference/production order differences

4). GBB Offsetting entry for inventory posting

a). VBR consumption

b). VNG scrapping

c). BSA opening stocks talking

d). SUF production receipt against production order

e). ZOF production receipt with out production order

f). VAY Delivery where sales account is not a revenue

account

g). VAY delivery where sales account is not a revenue

account

h). AUA production order differences

GBBVBR Raw material consumption A/C Dr

BSX to inventor raw material local A/C

Valuation class:

Valuation class determines the G/L account to be posted automatically

a). Raw material: 4 valuation classes

- Local

- Imported

- Inter Unit

- Inter company

b). Stores: 2 valuation classes

- Local

- Imported

b). Finished goods: 1 valuation class Own goods

Advantage is we need create valuation group each company code wise.

Material types

Price control

Purchase Price1. Raw material ROH

V Moving average price -Available

2. Stores & Spares FRSA

V Moving average price -Available

3. Packing material VERP

V- Moving average price -Available

4. Finished goods FERT

S Standard priceRaw material + overheads

5. Semi finished goods:

Purchased HALB - V moving average price Available

Produces HALB - S Standard price Raw material + overheads

6. Traded goods HAWA -

V Moving average price

7. Service DIEN

Material types similar to account in G/L

In M.M we create material mater

- Material master is to be created under material type

- Material master to be created at plant level

- When no. of plants area using same material it will be

extended to other plants

- Material periods we can open 2 periods at a time

- In G/L it is called as tabs, where as in MM it is called

No. of views like:

- Basic data

- Purchase data

- Sales data

- MRP data

- MRP data

- Ware house

- Quality

- Accounting

- Costing

Why system supports inventory account, not purchase account:

Purchase order

Price 10

Qty 5

Taxes 8% Cenvat

4% Vat

Other expenses 2%

In normal accounting system

RM 1

If other expenses not taken

Opening stock

0

Add: Purchases

63

63

Less: closing stock

10

Consumption

X

If invoice is not taken (Only Delivery challan copy is taken)

Opening stock 0

Purchases

0

0

Closing stock

20

Consumption

X

In SAP

Opening stock -0

Purchases 5 -

63

Consumption 3 -37

Closing stock 2 -

26

(Here the price of the good is taken from purchases order).

MM flow (Material management flow)

1. Material requisition: Production dept to stores called internals

If the material not available, stores department raised.

1. Purchases requisition stores to purchases dept

2. Purchases dept call for enquiry, quotations & price comparisons

3. Raising the purchases order by purchase dept

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

4. Release procedure work flow

Up to 10000 Manager Purchases

5. Goods receipt ( G.R )

G.R should be against purchases

Inventory raw material local Dr Balance sheet current asset BSX

To GR/IR clearing raw material local Balance sheet current liabilities WRX

6. Invoice verification Verification against GR (or)/ Purchase orders

GR/IR clearing Raw Material Dr Balance current liabilities WRX

To party Sundry creditors Balance sheet current liabilities Feam po

7. Consumption:

Raw material consumption local Dr P&L debit GBBVBR

To inventory raw material local B/S current assets BSX

8. Wages Payment:

Wages A/C Dr

To Bank A/C

9. Production receipt:

Inventory finished goods (At product cost) Dr Balance sheet current assets BSX

Increase/decreased stock finished goods P/L A/C credit GBBAUF (Production order) GBBZOF (NO Production order)

10. Delivery:

Increase/decrease in stock finished goods P&L credit: GBBVAY sales

(At product)

GBBVAX sales not revenue account

To inventory finished goods Balance sheet current asset BSX

11. Sales billing:

Customer A/C Dr Sundry debtors Balance sheet current asset from sale order

To sales- P&L A/C credit ERL

40161180 COGS-OTHER MATERIALIntegration is based on 3 rules:

1. In material master we specially valuation class

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

transaction.

3. Stores person when he received (or) issues material he will enter

Movement type, material number and quantity accounts will be

Updated automatically based on account assignment to valuation class

Which is specified in material master.

Example:

Po1

Po1Move type 101

Raw material 1

Material No RM1

qty: 100

Qty: 20 Kgs

Rate 5

Save

Vendor 1234

Movement type 101 Debit BSX 200121 inventory raw materials Qty in GRX

Credit WRX 150000 GR/IR clearing.

1st rule:

In material master we specify valuation class:

Here RM1 & RM2 (Material master) is specify the valuation

Class 3000 RM local & 3001 RM imported respectively.

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

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

Assign G/L accounts inv. Postings (BSX) (200121- Inventory raw material local, 20012-

Inv. Raw material imported), GR/IR clearing. WRX (150000 GR/IR clearing),

150001 (GR/IR clearing raw material imported)

Batch mode:

Batch:

Qty

Rate

Amount1

100

10

1000

2

200

40

8000

300 9000

1

10

10

100

8900

9080

Receipt:

a). Inv. Raw material local A/C

Dr

1000 BSX

To GR/IR clearing raw material local

1000 WRX

Consumption:

b). Raw material consumption local

Dr

100 GBBVBR

to raw material local

100 BSX

Price difference:

Inv. Verification

GR/IR clearing raw material 1000

Inv. Raw material local 200

To party

1200

Moving average:

Stock partly available

Qty

Rate

Amount

100

10

1000

200

40

8000

300

30

9000

Consumption280

30

8400

20 600

Price difference

40

20

640a) receipt;

Invent raw material localDr1000

-BSX

To GR/IR Clearing raw material 1000-WRX

b) Consumption:

Raw material consumption LocalDr8400-GBBVBR

To Inv. Raw material

8400-BSX

c) Inv Verification:

GR/IR Clearing raw material local

1000-WRX

Price difference raw material

160-Prd

Inv. Raw material

40 (20*2)BSX

To Party

1200 (from P.O)

The difference between batch method and moving average method

In batch method it checks with material no and batch number only

Moving average

-Stock not available

Qty

Rate

Amount

100

10

1000

200

40

8000

------

------

--------

300

30

9000

Consumption

300

30

9000

------

------

-------

a) Receipt:

Inv raw material loadDr1000-BSX

To GR/IR clearing raw material1000-WRX

b) Consumption:

Raw material localDr9000-GBBVBR

To Inv raw material

9000-WRX

c) Inv. Verification:

GR/IR Clearing raw material

1000-WRX

Price difference raw material

2000-PRD

To Party

SD to FI

1. Enquiry and quotation

2. Sale order:

Material qty, plant, sale, organization, rate, delivery terms, payment

3. Delivery:

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

With post goods issue (with PGI) Transfer of ownership

FOB (Free on Boards);

Example:

Plant

Port

Customer

Hyd

Chennai

Delivery without PGI

Delivery with PGI

Only material

Material document

No FI document

FI document

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

To inventory finished goods BSX

a). Billing should be with reference to delivery

Billing: in SD module there is a pricing procedure

Procedure:

i) From region - Andhra Pradesh

To region Andhra Pradesh

Customer Taxable

Material - Tax

Billing

Basic XXX

Excise XXX

VAT XXX

Bill amount XXX

ii). From Region Andhra Pradesh


Customer Non taxable

Material Non taxable

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

From H

Billing is

Basic XXX

Bill amount XXX

iii). From region Andhra Pradesh


Customer Taxable

Material Taxable

Billing is

Basic XXX

ExciseXXX

CSTXXX

Bill amountXXX

iv). From region Andhra Pradesh


Customer Non Taxable

Material Non Taxable

Billing

Basic XXX

Bill amount XXX

Condition type: KOFI

Assignment of Accounts:

(5) Account assignment group for Customer

01 Domestic revenue

02 Foreign revenues

03 Affiliated company revenue

(6) Account asset group for material

01- Trade goods

02- Service

03- Finished goods

(7) Accounts Key:

ERL Sales revenue

ERF Freight revenue

ERB Rebate (Trade discount)

ERS Sales deduction (Commissions)

MM Integration Step

1. Define plant

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

Double click on define plant

Select new entries button

Give plant: AMLP

Assign factory calendar: A2 (AML Hyderabad factory calendar)

Save

Give the name: AML Hyderabad factory plant

Give the country: IN (India)

Enter

Select create request button

Give the short description: MM customization for AML

Enter

Press enter to save in your request

Define copy, delete, check, division

Path: same path

Select define, delete, check division

Double click on define division


Division A1 Name: Cement division

Save

Save in your request

Maintain storage location

Path: SPRO Enterprise structure Definition Material Management Maintain storage location

Give the plant: AMLP

Enter


Give the storage location: Hyd

Give the description: Hyd storage location

Save


Maintain purchasing organization

Path: Same path


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

Save


Assign plant to company code

Path: SPRO Enterprise structure assignment logistics general assign plant company code

Select find button

Give the code: AML

Enter

Select: AML

Select assign button

Select: AMLP check box

Enter

Save


Assign business area to plant/valuation area and division:

Path: Same path

Select plant/valuation area division button


Plant: AMLP

Division: A1

Give the business area: AMH

Select save button


Assign purchasing organization to company code

Path: SPRO Enterprise structure assignment material management assign purchasing organization company code

Select find button

Give the company code AMI

Enter

Select company code: AML


Select: AMLR check box

Enter

Save


Creation of material group

Path: SPRO Logistic general material group create material group

Material group: CHEMICAL

Enter

Give the material group description: Chemical

Save

Creation of purchasing group

Path: SPRO material management purchasing create purchasing groups


Purchase group: AML

Description: Raw material purchase group

Save


Maintain company code for material management

Path: SPRO Logistic general material master basic settings Maintain company code for material management

Select position button

Give the company code: AML

Enter

For the code: AML

Give the year: 2007

Give the period: 7

Select ABP check box

ABP allow back period postings

Save

Ignore the warning message

Press enter


Define attributes of material types

Path: SPRO Logistic general material master basic settings material types

Define attributes of material types

Select material types: ROH (Raw material)

Double click on qty/value updating folder


Give the valuation area: AMLP

Enter

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

Save


Select back arrow

Select material type: FERT (Finished Products)

Double click on qty/value updating folder



Enter

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

Save

Select tolerance group for purchase orders

Path: SPRO material management purchasing purchase order set tolerance limits for price variance

Select: tolerance key PE & tolerance key: SE

For company code: 1000

Select copy as button

Change company code: AML

Press enter

Once the company code: to AML for SE

Enter & save


Set tolerance limit goods receipt

Path: SPRO material management inventory management & physical inventory goods receipt set tolerance limit

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


Change company code to AML for B1

Enter

Change company code to AML for B2

Enter

Change company code to AML for VP

Enter & save


Plant parameters

Path: SPRO material management inventory management & physical inventory plant parameters

Select plant: 1000



Enter & Save


Maintain default values for tax codes

Path: SPRO material management Logistic invoice verification incoming invoice maintain default values for tax codes


Company code: AML

Select tax code: VO

Save

Set tolerance limit for invoice verification

Path: SPRO material management Logistic invoice verification invoice block

Set tolerance limit

Select tolerance key BD

Select tolerance key ST for company code: 1000


Change company code: AML

Enter

Once again change company code to AML for ST

Enter

Save


Define automatic status change

Path: SPRO material management Logistic invoice verification invoice verification in back ground define automatic status

Change



Save


Creation of GL master (FS00)

1. Inventory raw material local under current assets, loans advance

2. in finished good under current assets, land & advances

3. GR/IR clearing raw material local under current liabilities & provisions

4. Increase/decrease finished goods under the group increase/decrease the stocks

5. raw material consumption local under material consumption group

Use the transaction code: FS00

Give the G/L account No: 200121

Company code: AML

Select with template button

Give the G/L account No: 200120 (Inv. Raw material)

Company code: AML

Enter

Change short text &long text to: Inventory raw material local

Select create/bank/interest tab

Field status group change to G006 (Material accounts)

Select post automatically only check box

Save (or) (Ctrl +S)

2) G/L account No: 200122

Company code: AML


Give the G/L account No: 200121

Enter

Change short text & G/L long text to: Inventory finished goods

Save


Company code: AML


Give the G/L account No. 100500 (Out standing)

Company code: AML

Enter

Change short text & G/L long text to: GR/IR clearing raw material local

Select control data tab

Tax category: * (All tax types allowed)

Select posting with out tax allowed check box


Field status group: G045

Save


Company code: AML


Give the G/L account No: 300100 (Exchange gain)

Company code: AML

Enter

Change the account group to: increase in stocks

Change short text & G/L long text to: increase/decrease in stocks finished goods


Field status group: G030 (change in stock accounts)

Save

G/L accounts No: 400000

Company code: AML



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

Enter

Change the account group to: raw material consumption

Change short text & G/L long text to: Raw material consumption local


Field status group: G003

Save

Select edit cost element button

Valid from date: 01.04.2006 to 31.12.9999

Enter

Cost element category: 1

Save

Group together valuation areas:Path: SPRO material management valuation & account assignment account determination account determination without wizard group together valuation areas


Give the valuation area: AML1

Enter

For valuation area: AMLP valuation grouping code: X

Save


Define valuation classes:Path: same path

Select valuation class button


Change the valuation class, class to AML 1

Change the description to raw material local

Enter

Select valuation class: 7920 (Finished product) check box


Change the valuation class to AML2

Change the description finished goods

Enter & save


Configure automatic posting:Path: same path

Select cancel button

Select account assignment button

Transaction code: 0BYC

Double click on BSX (Inventory posting)

Give the chart of accounts: AML

Enter

Select valuation modifier check box

Select valuation class check box

Save

Valuation modifier: X

Valuation class: AML1

Give the account No: 200121 (Inventory raw material local)

Valuation modified: X


Account No: 200122

Save


Select back arrow

Double click on WRX (GR/IR clearing)

Select valuation modifier check box

Select valuation class check box

Save


Valuation class: AML 1

Account No: 100510 (GR/IR raw material)

Save


Select back arrow

Double click on GBB (offsetting entry for inventory posting)

Select general modification check box

Valuation modifier check box

Valuation class check box

Save


General modification: VBR

Valuation class: AML

Account No: 400000


General modification: AUF


Account No: 300200 (Increase/decrease in stock)


Valuation modifier: ZOF


Account No: 300200


General modification: VAY


Account No: 300200


Valuation modifier: VAX


Account No: 300200

Save


Documents types & number ranges: (OBA7)


Select document type: WE (Goods receipt)

Select details button

Note down the number range: 50

Select No. range information button


Select change intervals button

Select interval button

No. range: 50;

year: 2007

From no: 800001 to 900000

Enter & save

Select back arrow 3 times

Select type: WA (goods issue)







No. range: 49

year: 2007

From no: 900001 to 1000000

Enter & Save


Select type: RE (gross invoice receipt)







No. range: 51

year: 2007

From no: 1000001 to 1100000

Enter & Save

Creation of vendor master in MM (Path: XK01)


Purchase organization code: AMLR

Account group: AML2

Enter

Give the name of the vendor: Reliance industries

Country: In (INDIA)

Select next screen button 3 times

Reconciliation account: 100501

Sort key: 012

Select next screen button

Payment terms: 0001

Select next screen button 3 times

Order currency: INR

Select GR based invoice verification check box

Save

Material master creation:Path: Logistics materials management material master material create

(General) Immediately (MM01)Give the material No: AMLRM!

Industry sector: Mechanical Engineering

Material type: Raw material

Press select views button

Select: basic data 1

Select: purchasing

Select: General plan data/storage/accounting 1

Select organization levels button


Storage location: HYD

Enter

Give the description: Raw material 1

Base unit of measurement: Kg

Material group: Chem. (chemical)

Select purchasing tab

Purchasing group: AML (Raw material purchase group)

Select accounting 1 tab

Division: A1 (Cement division)

Valuation class: AML 1(Raw material local)

Price control: V (moving average price)

Moving price: 50/-

Total stock: 0

Total value: 0

Save

To open material periods:

Path: Logistics material management Material master other Close period

(T.Code: MMPV)

Give the from company code: AML

Period: 8

Fiscal year: 2007

Select check & close period radio button

Execute

Select back arrow

From company code: AML

Period: 9

Fiscal year: 2007

Select check & close period radio button

Execute

Purchase order creation:

Path: Logistic Material management Purchasing Purchase order create vendor/supplying plant known

(T.Code: ME21N)Give the vendor number: 6400001

Purchasing organization: AMLR

Company code: AML

Item: 10

Material: AMLRM1

P.O.quantity: 100

Net price: 75

Plant: AMLP

Save

Note down the P.O.No: 4500014522

Goods receipts:Logistics material management inventory management goods movement goods receipt for purchase order P.O.No known (T.Code: MIGO)

Give the purchase order No: 4500014522

Enter

Select quantity tab

Quantity in delivery note: 100 Kegs

Select item OK check box

Select where tab

Storage location: Hyd

Save

Display material document:

Path: Logistics materials management inventory management material document Display (T.Code: MB03)

Enter

Select accounting documents button

Select accounting document button

Inventory RM local

7500 AMLRM1 AML1 (BSX0)

To GR/IR RM local

7500 AMLRM1 AML1 (WRA)

Qty in GR * rate as per PO 100 * 75 = 7500Invoice verification:Path: logistics material management logistics invoice verification document entry enter invoice (MIRO)

Invoice date: 25.11.2007

Reference party bill no: 5678

Amount: 7500/-

Text: invoice verification

Select payment tab

Give the base line date: 02/12/2007

Payment terms: 0001

Give the purchase order No: 4500014522

Enter

Save

Ignore the warning message, enter

From the menu select invoice document display

Select follow on documents button

Double click on accounting document No:

Reliance industries A/C Dr 7500 (From purchase order)

To GR/IR clearing RM local

7500 AMLRM1 AML1 (WRX)

Goods issue for consumption:Path: Logistics material management inventory management goods movement goods issue(MB1A)

Give the movement type: 201

Plant: AMLP


Enter

Give the cost centre: Dept A

Material number: AMLRM1

Qty: 10 kegs

Save

From the menu select goods issue display

Enter


Select accounting document No

Inventory RM local 750 (AMLRM1 AML1 (BSX0)

RM consumption 750 AMLRM1 AML1 GBBVBR

To view material ledger:

Logistic material management inventory management environment stock stock for posting date (MB5B)

Give the material No: AMLRM 1

Company code: AML

Plant: AMLP

Select date: 01.04.2007 to 31.03.2008

Select: value added stock radio button

Execute

SD to FI IntegrationInsert regions:

SPRO general settings set countries insert regions



Region: AP; Description Andhra Pradesh

Save

Define sales organization

SPRO enterprise structure Definition sales & distribution define, copy,

Delete click on define sales organization


Sales organization: AMLS

Description: Hyderabad sales organization

Statistics currency: INR

Save (or) (Ctrl + S)

Ignore the warning message, press enter

Name: Hyderabad sales organization

Country: IN (India)

Enter

Select create request button

Short description: SD Customization for AML

Enter

Press enter to saving the request

Define distribution channel

Same path

Double click on define distribution channel


Distribution channel: AD

Description: direct sales

Save


Define shipping point:

SPRO enterprises structure definition logistics execution define, copy, delete, check shipping point

Double click on define shipping point


Give the shipping point: AMSH

Description: Hyderabad shipping point

Save

Give the name: Hyderabad shipping point

Country: IN (India)

Enter


Assign sales organization to company code

SPRO enterprise structure assignment sales and distribution assign sales organization to company code

Select from button


Enter

Select company code: AML


Select: AMLS check box

Enter


Save in request

Assign distribution channel to sales organization

Same path

Select find button

Give: AMLS

Enter

Select: AMLS

Select: Assign button

Select: AD check box (direct sales)

Enter & save


Assign division to sales organization

Same path

Select find button

Give: AMLS

Enter

Select: AMLS


Select: A1 (Cement division)

Enter & save


Set up sales area:

Path: same path

Select find button

Give: AMLS

Enter

Select: AMLS


Select: AD check box (Direct sales)

Enter

Keep the cursor in AD

Select: assign button

Select: A1 (Cement division check box)

Enter & Save


Assign sales organization Distribution channel plant

Select find button

Give: AMLS

Enter

Select: AMLS


Select AMLP check box

Enter & Save


Define rules by sales area:

SPRO enterprise structure assignment sales and distribution business area account assignment define rules by sales area


Give the sales organization: AMLS

Enter

For AMLS select rule 001 (Business area determination from plant/division

Save


Assign shipping point to plant

SPRO enterprises structure assignment logistics execution assign shipping point to plant

Select find button

Give: AMLP

Enter

Select: AMLP


Select: AMSH (Hyderabad shipping point) check box

Enter & Save

Define pricing procedure determination

SPRO sales & distribution Basic functions pricing pricing control define & Assign pricing procedures

Double click on define procedure determination



Distribution channel: AD (Direct sales)

Division: A1 (Cement division)

Document procedure: A (Standard)

Customer pricing procedure: select 1 (Standard)

Pricing procedure: Select RVW 01 (Standard)

Condition type: select PRO0 (Price)

Save


Define tax determination rules:

SPRO sales & distribution basic functions taxes define tax determination rules


Tax country: select IN (India);sequence: 1

Tax category: select MWST (out put tax)

Save

Creation of G/L master, sales local own goods (FS00)Give the G/L account No: 300001

Company code: AML


G/L account No: 300000 (sales account)

Company code: AML

Enter

Change short text & G/L account text to: sales local own goods


Field status group: G029 (Revenue accounts)

Save

Select edit cost element button

Valid from date: 01.04.2007 to 31.12.9999

Enter

Cost element category: 11 (Revenues)

Save

Assignment of accounts for automatic posting:SPRO sales & distribution basic functions accounts assignment/costing Revenue account determination assign G/L accounts

(T.Code: VKOA)Double click on table: 001


Application area: select V (sales & distribution)

Condition type: select KOFI

Chart of accounts: AML


Account assignment group for customer: select 01 (Domestic revenues)

Account assignment group for material: select 03 (finished goods)

Account key: select ERL (sales revenues)

G/L account No: 300001 (sales local own goods)

Save


Set up partner determination:

4 types of partners:

SP sold to party fixed net modifiable

SH ship to party

BP bill to party

PY Payee

Path: SPRO sales & distribution basic functions partner determination set up partner determination

Double click on set up partner determination for customer master

Double click on partner function folder

Select: SP (Sold to party)

Double click on account groups function assignment folder


Partner function: SP (Sold to party), enter: SH (AML); BP (AML2), PY (AML2)

Account group: AML2 (SD customer for AML)

Enter & Save


Double click on partners determination procedures folder


Give the partner determination procedure: AML

Name: AML (Partner determination procedure)

Save

Ignore the message, press enter

Select: AML

Double click on partner functions in procedure folder


Give the partner function: SP (Sold to party)

Select not modifiable check box

Select mandatory function check box

Partner function: SH (Ship to party)

Select mandatory function check box

Select: BP (Bill to party); select mandatory function check box

Select: PY (Payee); select mandatory function check box



Select: AML

Double click on partner determination procedure assignment folder


Account group: AML2

Enter

For AML2: Assign AML

Save

Assign shipping points:SPRO logistics execution shipping Basic shipping functions shipping point & goods receive point determination assign shipping points


Shipping conditions: 01 (As soon as possible)

Loading group: 0003 (Manual)

Plant: AMLP

Proposed shipping point: AMSH

Save, save in your request

Creation of customer master: (XD01)Account group: select SD customer for AML

Company code: AML



Division: A1

Enter

Give the customer name: VBC industries Ltd

Country: IN (India)

Region: AP

Select company code data button

Reconciliation A/C: 200110 (Sundry debtors)

Sort key: 031

Select payment transactions tab

Terms of payments: 0001

Select sales area button

Customer pricing procedure: select 1 (Standards)

Select: shipping tab

Delivery priory: select 02 (Normal)

Shipping conditions: select 01 (as soon as possible)

Select: billing document tab

Select: price determination check box

Inco terms: select EXW (From plant)

Account assignment group: select 01 (Domestic revenues)

Output tax classification: select 1 (Liable for tax)

Save

Creation of finished goods material master: (MM01)Give the material no: AMLFG

Industrial sector: Mechanical engineering

Material type: finished product

Press: select views button

Select: basic data

Select: sales: sales Org data 1

Select: sales: sales Org data 2

Select: sales: general/plant data

Select: MRP

Select: General/plant/data/storage

Select: accounting 1






Enter

Give the description: finished product

Base unit of measurement: Kg

Gross weight: 1000 grams

Select: sales: sales organization data 1 tab

Division: A1

Tax classification: select 1 (Full tax)

Select: sales: sales organization to tool tab

Account assignment: select KP (No check)

Transportation group: 0003 (container)

Loading group: 0003 (Manual)

Select: MRP 1 tab

MRP type: select ND (No planning)

Select: accounting 1 tab

Valuation class: AML2 (finished products)

Price control: select S (Standard price)

Standard price: 400/-

Select save button (or) (Ctrl + s)

Creation of condition type:Logistic sales & distribution master data conditions select using condition type create (VK11)Give the condition type: PR00 (price)

Select: key combination button

Select: material with release status radio button

Enter

Give the material No: AMLFG

Amount: 500/-

Valid on: 01.04.2007 to 31.03.2008


Select back arrow

Give condition type: MWST (Out put tax)

Select key combination button

Select domestic taxes radio button

Enter


Valid on 01.04.2007 to 31.12.9999

Tax classification customer: 1 (Liable for tax)

Tax classification for material: 1

Tax code: select AO

Save


Profitable analysis (CO PA)Co Controlling

PA Profitability analysis

This is used to view profitability for number of parameters at a time

If the client want to view profitability

Product wise/customer wise/sales order wise/plant wise/sales organization wise

- This is called data cube

- This is a reporting tool

- Product costing is based on the based on data flown from

MM, PP, FI, CO

Here we have

- Account based/ costing based/both wise profitability analysis

- Here we create operating concern

Operating concern can be

- Equal to controlling area (or) above controlling area

Controlling area can be equal to company code (or) above company code

Structure: company code = controlling area = operating concern

We are using called data structure

Profitability segment:

In consist of system defaulted characteristics

Client required characteristics

Example of client required characteristics:

1. Sales employee wise profitability

2. industry wise profitabilityData flow in profitability analysisSD to FIa) Enquiry & quotation

b) Sale order: customer product plant sales organization quantity price delivery terms & payment terms

c) Delivery: with out posts goods issue/with post goods issue

d) Billing

Define operating concerns:

SPRO controlling profitability analysis structures define operating concern maintain operating concern

Operating concern: 1234 (it should be 4)

Select create button


Give the description: operating concern for AML

Select costing based check box, actual based check box

Select attributes tab

Give the operating concern currency: INR

Select company code currency check box

Fiscal year variant: V3

Save

Select data structure tab

Select create button under data structure

Select the characteristic: KNVTNR (sales employee)

Select left arrow

Select value fields tab

Select: VV010 (Revenues)

Select: VV140 (cost of goods sold)

Select left arrow

From the menu select data structure save

From the menu select data structure activate

Select back arrow

Select yes button for the message to generate the operating concern environment


Define profitability segment characteristics: (In segment level characteristics)

Path: same path (T.Code: KUQ3)

Give the operating concern: 1234

Enter

For product & customer

Select costing base & Account base radio butt

Save


Assign controlling area: to operating concern:Path: SPRO enterprise structure assignment controlling assign controlling area to operating concern


Give the controlling area: AML

Enter: for controlling area: AML, assign operating concern: 1234

Save


Define No. range for actual postings:SPRO controlling profitability analysis flows of actual values initial steps define number ranges for actual postings

(T.Code: KEN1)Give the operating concern: 1234

Select maintain groups button

Select generated groups check box

From the menu select interval maintain

Give the No from: 1 to 999999999

Save

Maintain assignment of SD conditions to Co PA value fieldsPath: SPRO controlling profitability analysis flows of actual values transfer of billing document assign values fields

Double click on maintain assignments of SD conditions to CO PA value fields (T.Code: KE41)Select new entries button

Open one more session & set operating concern ideaPath: SPRO controlling profitability analysis structures set operating concern

Give the operating concern: IDEA

Enter

Use the transaction code: KE41

Come to the 1st session

Give the condition type: PR00 (rice)

Select value fields VV010 (Revenue)

Select VPRS (Costs)

Select value fields VV140 (cost of goods sols)

Save

Maintain PA (profitability analysis structure for direct postings:SPRO controlling profitability analysis flows of actual values direct postings from FI/MM maintain PA transfer structure for direct postings (T.Code: KET2)Select the structure: FI (Financial accounting to CO-PA)

Double click on assignment lines folder

Select: 20 (Direct revenues from FI)

Double click on source folder

Give the cost element: from 300000 to 399999

Double click on value fields folder


Qty/value select value field

Fixed variable select 1 (fixed amounts)

Value fields select VV010 (Revenue)

Save


Double click on assignment lines folder

Select assignment: 10 (Direct costs from FI)

Give the costs element: From 400000 to 499999

Double click on value fields folder


Qty/value select value field

Fixed variable select 1 (fixed amounts)

Value fields select VV140 (Cost of goods sold)

Save

Activate profitability analysis:

Path: same path

(T.Code: KEKE)Select position button


Enter

For controlling area: DRL Activate status a4 (Component active for both types of profitability analysis)

Save


Sale order creation:Path: Logistics sales & distribution sales order create (T.Code: VA01)Give the sales organization: AMLH


Division: A1

Order types: OR (standard order)

Enter

Sold to party: VBC industries Pvt. Ltd

Give the P.O. order: 5678

Required delivery date: 03.12.2007

Delivery plant: AMLP

Payment terms: 0001

Item: 10;

Material No: AMLFG

Order qty: 1 kg

Enter


Select item 10

From the menu select go to item condition

Select: shipping tab

From the menu select edit Incompletion log


Note: Sales order No: 8209

Production receipt with out production order:Path: Logistics Material management Inventory management goods movement goods receipt other (MB1C)

Give the movement type: 521

Plant: AMLP


Enter

Give the material type: AMLFG

Qty: 20 kegs

Save


From the menu select other goods receipts display

Enter


Select accounting documents No:

Account No

Description

INR200122

Inventory FG

10000 - DRLFG1 DRL1 (BSX)

300201

Inc/Dec in stock FG10000 DRLFG1 DRL1

(GBBZAX)

Qty & standard price

Delivery:Logistics sales & distribution sales order subsequent functions outbound delivery (VL01N)Give the shipping point: AMLS

Give the sales order number: 8209 (what it is created in sales order)

Enter

Actual GI date (Goods issue date): 03.12.2007

Select item: 10

Select picking tab

Pick quantity: enter 1

Select post goods issue button

From the menu select out bound delivery display

Enter

From the menu select environment document flow

Keep the cursor on goods issue

Select display document button


Select accounting document No:

200122Inventory FG

500 DRLFG1 DRL1 (BSX)

300201Inc/dec in stock FG500 DRLFG1 DRL1 GBBVAY

Billing document:Same path: (VF02)Select the delivery document No: 11341

Enter

Save

From the menu select billing document display

Select accounting button

Select accounting document No

Report generation through report painterDefine formsSPRO controlling profitability analysis information system report

Components define forms define forms for profitability reports

Double click on create from

Give the form name: AML

Description: AML form (T.Code: KE34)

Select two axes (Matrix) radio button


Select operating concern currency radio button

Enter

Double click on: Row 1

Select value field with characteristics radio button

Enter

Value field select: VV01 (Revenue)

Select: confirm button

Double click on row 2

Select value field with characteristics radio button

Enter

Value field select: VV140 (Cost of goods sold)

Select: confirm button

Double click on: Row3

Select formula radio button

Enter

Select Y001 (Revenue)

Select Minus (-) button

Select Y002 (Cost of goods sold button)

Enter

Short description: Net profit

Select copy short text button

Enter

Double click on column 1

Select characteristics radio button

Enter

Select from the available characteristics plan/actual indicator

Select left arrow

For plant/actual indicator: select 0 (Actual data)

Select confirm button

Save

From the menu select edit General data selection General data selection

From the available characteristics select record type, select period/year

Select left arrow

For record type: select from column B to column select F (Billing data)

For period/yearFor from column: select variable on/off check box

Local variable: enter 1

Enter

For to column: select variable on/off check box

Give the local variable: 2

Enter

Select confirm button

From the menu select extras variable variable of definition

1 Description: from period/year

2 Description: to period/year

Enter & Save

Create profitability report:Same path

Double click on create profitability report

Transaction code: KE31

Give the report name: AML profit

Description: AML profitability

Select: Report with from radio button

Give the form name: AML


Select customer, product, plant, select sales organization from characteristics list

Select left arrow

Select output type tab

Select: Class drill down radio button

Select available on selection screen check box

Save

Select execute button

Give from period/year: 01.2007

To period/year: 12.2007

Execute

Ignore the message, select yes button

To view product wise:From the message select navigate switch drill down

Double click on product

Product costingThis is used for valuation of inventories like work in process & finished goods.

- Data is flow MM, PP, FI&CO modules

- Product costing made easy sap labs

- When we will take production it will be standard cost

- In the month ending we will knows the actual cost

- The difference will be settle variances of accounts

Data flow in product costing:Example: Product AMLFGI

Cost sheet

AML finished goodsRaw material

XXX (qty from BOM * rate from material master)

Raw material over heads

XXX (10% of raw material)

Production cost

XXX (hours required * machine hour rate)

-------

Cost of goods manufacturing

XXX

(COGM)

Admn & selling & dist exp

XXX

-------

Cost of goods sold

XXXSales budget production budget

Sales budget: Make to order

Make to stock

Production budget: material requirements plan

Over heads planning

MM

Material master

Accounting view

Raw material (AMLRM1) Moving average price 75/-

(AMLRM2) Moving average price 100/-

PP: bill of material (BOM) required for production

AMLRM1 1kg

AMLRM2 1kg

Dept ADept B

Dept C

Dept D Work centre in PP

X

(Finished goods (AMLFG))

Finished product (AMLFG) process flow A C D (Routing)

Salaries 200000

Wages - 500000

Rent - 20000

720000Machine 100 machines

Machine hours = 100 * 24 hours * 30 days = 72000 machine hours

Machine hour rate = 720000/72000 = 10/- per hour

To produce finished product AMLFG say 5 machine has = 5 * 10 = 50

Creation of secondary cost elements:

1. Overhead cost element

2. activity cost elementUse the transaction code: KA06

Use the cost element: 1100000

Valid from: 01.04.2007 to 31.12.9999

Enter

Give the name: RM overhead rate

Description: RM overhead rate

Cost element category: select 41 (Overhead rate)

Save

One more cost element: 1200000

Valid from: 01.04.2006 to 31.12.9999

Enter

Give the name: Activity cost element

Description: Activity cost element

Cost element category: select 43 (internal activity allocation)

Save

Creation of activity type: (Called machine hour)

Accounting controlling cost centre accounting master data activity type individual processing create (KL01)

Activity type: AML

Valid from: 01.04.2007 to 31.12.9999

Enter

Name: Machine hour

Description: Machine hour

Activity unit: select H (Hour)

Cost centre category: select * (All cost centre category)

Enter

Activity type category: select 1 (Manual entry, manual allocation)

Allocation cost element: select 1200000

Save

Creation of 2 cost centers: (KS01)Give the cost centre: Dept G

Valid from: 01.04.2007 to 31.12.9999

Reference cost centre: Dept A

Controlling area: AML

Enter

Change the name to dept G

Description: cost centre dept G

Other fields are common


One more cost centre: dept H

Valid from: 01.04.2007 to 31.12.9999

Reference cost centre: dept A


Enter

Change the name to dept H

Cost centre: dept H

Cost centre category: select 9 (Allocation cost centre)

Save

Creation of cost center group: (KSH1)

Give the cost center group: AML prod

Enter

Give the cost centre group: AML prod

Select insert cost centre button

Give the cost centre: dept G

Select save button (or) (Ctrl + S)

Define overhead keys:

SPRO controlling product cost controlling basic settings for material costing overhead define overhead keys


Overhead key name: AML

Description: AML overhead key

Save


Define overhead group:

Same path


Valuation area: AMLP

Overhead group: AML

Overhead key: AML

Name of overhead group: overhead group for AML

Save


Define calculation bases:

SPRO controlling product cost controlling product cost planning basic settings for material costing overhead costing sheet components define calculation bases


Base: A1

Name: raw materials


Select: A1

Double click on details folder


Enter


From cost element: 400000 to 400099

Save


Select: new entries button

Base: A2

Name: production cost

Save

Select: A2



Enter



: 400500

: 1200000


Define percentage overhead rates

Path: same path

Select: new entries button

Overhead rate: A3

Name: raw material overhead rate

Dependency: select DO10 (overhead type H keys)

Save


Select: A3




Valid from: 01.04.2007 to 31.03.2008


Overhead type: select 2 (Planned overhead rate)

Overhead key: AML

Percentage: 15%

One more:Valid from: 01.04.2007 to 31.03.2008


Overhead type: select 1 (Actual overhead rate)

Overhead key: AML

Percentage: 10%

Save


Define credits:

Same path


Give the credit key: A4

Name: raw material credit key

Save


Select: A4



Enter


Valid to: 31.03.2008

Cost element: 1100000 (Raw material overhead rate)

Fixed percentage: 100%

Cost centre: dept H

Save

Example:RM1 Handling charges Dr Dept H 3000

To bank

3000

RM2 Handling charges Dr Dept H - 7000

To bank

7000

Production 1

Production 2RM cost30000

RM Cost 7000

10% of cost30000

10% of cost 7000Define costing sheet:

SPRO controlling product cost controlling basic settings for material costing overhead define costing sheets


Costing sheet: AML

Description: AML costing sheet

Select: AML

Double click on costing sheet rows folder


Give row: 10 Basic: A1 (Raw materials)

Row: 20 overhead rate: A3 (Raw material overhead rate)

From: 10 to Row 10: Credit: A4

Row: 30. Base: A2 (Production cost)

Row: 40. Description: Cost of goods manufacture

From Row 10 to Row 30


Assign costing sheet to costing variant:

SPRO controlling Product cost controlling product cost planning material cost estimate with quantity structure define costing variance

Transaction code: OKKNSelect costing variant: PPK1 (Standard cost estimate (Material))


Select valuation variant button

Select create button (Beside valuation variant/plant)




Select back arrow

Select valuation variant: 001 with plant: AMLP


Select overhead tab

Give the costing sheet: AMLP costing sheet

The costing sheet: AMLP costing sheet

Save

Define cost component structure:

SPRO controlling product cost controlling product cost planning basic settings for material costing define cost component structure

Select structure: 01

Double click on: cost component with attributes folder

Select: cost component 10 (Raw material)

Double click on: cost component with attributes folder

Select: cost component 10 (Raw material)

Double click on assignment cost component cost element interval folder


Cost component structure: 01



Cost element: 010 (Raw materials)

Save, ignore the warning message, and enter


Double click on cost component with attributes folder

Select component: 80 (Material overhead)

Double click on assignment cost component cost element interval




From cost element: 1100000 (Overhead rate)

Cost component: 080 (Material overhead)

Save

Double click on cost element with attributes folder

Select cost component: 50 (Production machine)

Double click on assignment cost component cost element interval folder





Cost element structure: 050

One moreCost component structure: 01


From cost element: 400500




From cost element: 1200000


Save

Double click on cost element structure folder

For 0 select active check box


Determine person responsible for work centre:Path: SPRO production basic data work centre general data determine person responsible



Person responsible: A

Give the responsible: Mr. A

Save


Define MRP controller: (MRP: Material requirement planning)

SPRO production material requirement planning mater data define MRP controllers


Give the plant name: AMLP

MRP controller: B

Description: Mr. B

Save


Define floats (scheduling margin key) (Floats cushion period)

Path: SPRO production material requirement planning planning scheduling & capacity parameters define floats (Scheduling margin key)


Give the plant name: AMLP

Schedule margin key: AML

Opening period: 2 days

Float before production: 2 days

Float after production: 2 days

Release period: 2 days

Save


Define production scheduler:

SPRO shop floor control master data define production scheduler


Plant: AMLP

Production scheduler: C

Production scheduler name: Mr. C

Save (or) (ctrl + s)

Planning cost centre wise (KP06)

Version: 0

From period: 9 to 9

Fiscal year: 2007

Cost centre: Dept G

Next page

Cost centre: 400100(Salaries)

Select from based radio button

Select over view screen button

Give plan fixed cost: 720000

Save

Planning for machine hours:

Accounting controlling cost centre accounting planning activity ad put prices change

(KP26)Version: 0

From period: 9 to period: 9

Year: 2006

Cost centre: Dept G

Activity type: AMI

Select from based radio button

Select overview screen button

Give plan activity 72000 (100 machines* 3 shifts * 30 days)

Save

Machine down rate calculation:

Accounting controlling cost centre accounting planning allocations price calculation

(KSPI)Select cost centre group radio button

Give the cost centre: AMLPROD

Version: 0

From period: 9 to period: 9

Fiscal year: 2006

Execute

Select save button (or) ctrl + s)


Creation of material master: (MM01)

Give the material number AMLRM2

Industry sector Mechanical engineering

Material type: Raw material

Press: select use button

Select: Basic data. Purchasing general plant data storage one accounting


Give the plant: AML


Enter

Give the description: Raw material

Basic unit of measurement: Kg

Material group: Chem.

Select purchasing tab

Purchasing group: AML

Select: Accounting l tab

Valuation class: AML l

Price control: V

Moving price: 100

Save

Creation of finished goods master (MM01)

Material No: AMLFG1

Industry sector Mechanical engineering

Material type: Finished product

Press select views button

Select: Basic data1. MRP1, MRP2, work scheduling general plant data/storag1. Accounting1. costing1.


Plant: AMLP


Enter

Give the description: Finished product1

Basic unit of measurement: Kg

Select: MRP1 tab

MRP type: select PD (MRP)

MRP controller: select B (Mr. B)

Lot size: select ex (lot for lot order quantity)

Select MRP2 Tab

In house production: 0 days

Schedule margin key: AML

Select work schedule time tab

Ignore the warning message: enter

Production: scheduler C

Select accounting tab


Price control: S (Standard)

Give the standard price: 300

Select costing tab

Overhead group: select AML

Availability check: Select KP (No check)

Save

Creation of bill of material:

Logistic production master data bill of material material BOM create

(CS01)Give the material No: AMLFG1

Plant: AMLP

BOM usage: Select 1 (Production)

Enter

Give the component

For item 10: AMLRM1;

qty: 1kg

Item 20: AMLRM2;

qty: 1

Save

Creation of work center:

Logistics production master data work centers work centers create

(CR01)Work centre: Dept G

Work centre category: select 0001 (Machine)

Select basic data button

Give the description: work center Dept G

Person responsible: A

Usage, select 009 (All task list types)

Standard value key: SAPI (Normal production)

Select costing tab

Start date: 01.04.2006

Cost centre: Dept G

For activity machine: Give the activity type AML

Performance unit: H (Hour)

Formula key: SAP002 (Production machine types)

Save

Creation of routing:

Logistics production master data routings standard routings create

(CA01)Give the material No: AMLFG1

Plant: AMLP

Enter

Usage: select (Production)

Status: select 4 (Release (General))

Select operation button

For operation at tab give the work centre: Dept G

Control key: select PP01 (In house production)

Select operation: 10 and double click

Machine: standard values: 5

Unit: H (hours)

Save

Creation of cost estimate with quality structure:

Accounting controlling product cost controlling product cost planning material costing cost estimate with quantity structure create (T.Code: CK11N)Give the material: AMLFG

Plant: AMLP

Costing variant: PPCI (Standard cost estimate)

Enter

Give the costing date from: 08.12.2006 costing date to 31.12.9999

Qty structure date: 08.12.2007

Valuation date: 08.12.2007

Enter

Standard cost should be: 251.25

Cost sheet

RM AMLRM1 75

- AMLRM2 100

175.00

RM overhead 15%

26.25

Production costs

(5 * 10) machine hours 50.00

251.25

From the menu select: cost display cost components

Select save button (or) (Ctrl + S)

Enter

PAGE 4

Integartion OBYC SAP FI-MM

Documents

material receipt

material requisition

plants material periods

raw material roh v

purchase order price

packing material verp

average price available

sales account