Sappress Product Cost Controlling With Sap 2.

John Jordan

Product Cost Controlling with SAP®

Bonn � Boston

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Contents at a Glance

1 Introduction ...................................................................... 21

PART I Integrated Planning

2 IntegratedPlanning ........................................................... 31

PART II Product Cost Planning

3 ControllingMasterData .................................................... 59

4 MaterialMasterData ......................................................... 101

5 LogisticsMasterData ......................................................... 161

6 CostingSheets ................................................................... 225

7 CostComponents .............................................................. 239

8 CostingVariantComponents ............................................. 273

9 CostingVariantTabs .......................................................... 333

10 StandardCostEstimate ...................................................... 355

11 PreliminaryCostEstimate .................................................. 379

12 UnitCostEstimate ............................................................. 387

PART III Cost Object Controlling

13 PreliminaryCosting ............................................................ 397

14 SimultaneousCosting ........................................................ 405

15 Overhead .......................................................................... 425

16 WorkinProcess ................................................................. 429

17 VarianceCalculation .......................................................... 453

18 Settlement ......................................................................... 473

19 SpecialTopics .................................................................... 499

PART IV Information System

20 InformationSystem ........................................................... 551

Appendices ............................................................................... 593

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Contents

Acknowledgments ....................................................................... 19

1 Introduction ................................................................. 21

1.1 Concept of this Book .................................................... 211.2 Target Audience ............................................................ 221.3 Structure of this Book ................................................... 23

1.3.1 Part I: Integrated Planning ................................ 231.3.2 Part II: Product Cost Planning ........................... 231.3.3 Part III: Cost Object Controlling ....................... 261.3.4 Part IV: Information System .............................. 27

1.4 Looking Ahead ............................................................. 27

PART I Integrated Planning

2 Integrated Planning ..................................................... 31

2.1 Profitability Analysis ...................................................... 322.2 Sales and Operations Planning ...................................... 332.3 Long-Term Planning ...................................................... 35

2.3.1 Create Planning Scenario .................................. 372.3.2 Long-Term Planning Run .................................. 382.3.3 Transfer Requirements to Purchasing ................ 412.3.4 Transfer Activity Quantities to CCA ................... 45

2.4 Cost Center Planning .................................................... 472.4.1 Cost Element Planning ..................................... 482.4.2 Activity Price Planning ..................................... 50

2.5 Final Planning ............................................................... 542.5.1 Calculate Standard Costs .................................. 542.5.2 Transfer Standard Costs to CO-PA ..................... 55

2.6 Summary ...................................................................... 55

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Contents

PART II Product Cost Planning

3 Controlling Master Data .............................................. 59

3.1 Cost Element ................................................................ 603.1.1 Primary Postings ............................................... 603.1.2 Secondary Postings ........................................... 643.1.3 Basic Data ........................................................ 653.1.4 Indicators ......................................................... 683.1.5 Default Account Assignment ............................ 693.1.6 History ............................................................. 73

3.2 Cost Center ................................................................... 733.2.1 Standard Hierarchy ........................................... 743.2.2 Basic Data ........................................................ 783.2.3 Control ............................................................. 823.2.4 Templates ......................................................... 833.2.5 Address and Communication ............................ 853.2.6 History ............................................................. 85

3.3 Activity Type ................................................................. 863.3.1 Basic Data ........................................................ 863.3.2 Indicators ......................................................... 933.3.3 Output ............................................................. 953.3.4 History ............................................................. 963.3.5 Group .............................................................. 97

3.4 Statistical Key Figure ..................................................... 993.5 Summary ...................................................................... 100

4 Material Master Data .................................................. 101

4.1 MRP 1 View ................................................................. 1024.1.1 General Data .................................................... 1024.1.2 Lot Size Data .................................................... 104

4.2 MRP 2 View ................................................................. 1064.3 MRP 4 View ................................................................. 110

4.3.1 BOM Explosion and Dependent Requirements ... 1104.3.2 Discontinued Parts ........................................... 114

4.4 Costing 1 View ............................................................. 115

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Contents

4.4.1 General Data .................................................... 1164.4.2 Quantity Structure Data ................................... 120

4.5 Costing 2 View ............................................................. 1284.5.1 Standard Cost Estimate .................................... 1284.5.2 Planned Prices .................................................. 1304.5.3 Valuation Data ................................................. 132

4.6 Accounting 1 View ....................................................... 1384.6.1 General Data .................................................... 1394.6.2 Current Valuation ............................................. 1394.6.3 Previous Period/Year ........................................ 1424.6.4 Standard Cost Estimate .................................... 143

4.7 Accounting 1 View—Material Ledger Activated ............ 1444.7.1 General Valuation Data .................................... 1464.7.2 Prices and Values ............................................. 149

4.8 Accounting 2 View ....................................................... 1524.8.1 Populate Tax Price and Commercial Price ......... 1534.8.2 Using the Tax and Commercial Price Fields ....... 158

4.9 Summary ...................................................................... 160

5 Logistics Master Data ................................................. 161

5.1 Bill of Material .............................................................. 1615.1.1 Basic Data ........................................................ 1635.1.2 Status/Long Text ............................................... 1665.1.3 Administration ................................................. 1685.1.4 Document Assignment ..................................... 169

5.2 Work Centers ................................................................ 1705.2.1 Basic Data ........................................................ 1715.2.2 Default Values .................................................. 1745.2.3 Capacities ......................................................... 1775.2.4 Scheduling ....................................................... 1795.2.5 Costing ............................................................. 184

5.3 Routing ......................................................................... 1865.3.1 Header ............................................................. 1875.3.2 Operation Overview ......................................... 1905.3.3 Operation Details ............................................. 190

5.4 Product Cost Collector .................................................. 1965.4.1 Data ................................................................. 198

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Contents

5.4.2 Header ............................................................. 2035.4.3 Production Process ........................................... 2095.4.4 List Product Cost Collectors .............................. 212

5.5 Purchasing Info Record ................................................. 2145.5.1 Purchasing Organization Data 1 ....................... 2155.5.2 Conditions ....................................................... 2165.5.3 Plant-Specific Purchasing Info Records ............. 219

5.6 Source List .................................................................... 2215.6.1 Fixed Source of Supply ..................................... 2235.6.2 Blocked Source of Supply ................................. 223

5.7 Summary ...................................................................... 223

6 Costing Sheets ............................................................. 225

6.1 Overhead ...................................................................... 2256.2 Calculation Base ............................................................ 2276.3 Overhead Rate .............................................................. 228

6.3.1 Percentage Overhead ....................................... 2296.3.2 Quantity-Based Overhead ................................ 235

6.4 Credit Key ..................................................................... 2376.5 Summary ...................................................................... 238

7 Cost Components ........................................................ 239

7.1 Cost Component Terms ................................................. 2397.2 Cost Components with Attributes ................................. 243

7.2.1 Control ............................................................. 2457.2.2 Filter Criteria for Cost Component Views .......... 2477.2.3 Delta Profit for Group Costing .......................... 2497.2.4 Cost Summarization ......................................... 2507.2.5 Assign Cost Elements to Cost Components ....... 2517.2.6 Update of Additive Costs .................................. 2527.2.7 Transfer Structure ............................................. 253

7.3 Cost Component View .................................................. 2557.3.1 Cost Estimate Display ....................................... 2587.3.2 Overhead Calculation ....................................... 2597.3.3 Other Components .......................................... 260

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Contents

7.4 Organizational Units of Cost Components ..................... 2617.4.1 Main Cost Component Structure ...................... 2627.4.2 Auxiliary Cost Component Structure ................. 2637.4.3 Check Assignment to Organizational Units ....... 263

7.5 Cost Component Groups ............................................... 2657.5.1 Create Cost Component Groups ....................... 2667.5.2 Assign Groups to Cost Components .................. 2677.5.3 Assign Groups to Report Columns .................... 268

7.6 Summary ...................................................................... 271

8 Costing Variant Components ....................................... 273

8.1 Define Costing Variant .................................................. 2738.2 Costing Type ................................................................. 275

8.2.1 Price Update .................................................... 2778.2.2 Save Parameters ............................................... 2808.2.3 Miscellaneous .................................................. 282

8.3 Valuation Variant .......................................................... 2858.3.1 Material Valuation ............................................ 2868.3.2 Activity Types and Processes ............................. 2958.3.3 Subcontracting ................................................. 2998.3.4 External Processing .......................................... 3018.3.5 Overhead ......................................................... 3048.3.6 Miscellaneous .................................................. 305

8.4 Date Control ................................................................. 3088.4.1 Costing Date From ........................................... 3098.4.2 Costing Date To ................................................ 3108.4.3 Quantity Structure Date ................................... 3108.4.4 Valuation Date ................................................. 310

8.5 Quantity Structure Control ............................................ 3118.5.1 BOM ................................................................ 3128.5.2 Routing ............................................................ 319

8.6 Transfer Control ............................................................ 3228.6.1 Single-Plant ...................................................... 3238.6.2 Cross-Plant ....................................................... 326

8.7 Reference Variant .......................................................... 3278.8 Summary ...................................................................... 330

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Contents

9 Costing Variant Tabs .................................................... 333

9.1 Control ......................................................................... 3339.2 Quantity Structure ........................................................ 334

9.2.1 Pass On Lot Size ............................................... 3359.2.2 Ignore Product Cost Estimate without Quantity

Structure .......................................................... 3369.2.3 Transfer Control Can Be Changed ..................... 3379.2.4 Transfer Active Standard Cost Estimate if

Material Costed with Errors ............................. 3409.2.5 Transfer Cost Estimate of an Order BOM .......... 341

9.3 Additive Costs .............................................................. 3429.3.1 Additive Cost Components ............................... 3429.3.2 Include Additive Costs with Stock Transfers ...... 343

9.4 Update Tab ................................................................... 3449.4.1 Saving Allowed ................................................ 3449.4.2 Save Error Log .................................................. 3459.4.3 Defaults Can Be Changed by User ..................... 3469.4.4 Itemization ....................................................... 347

9.5 Assignments ................................................................. 3489.5.1 Cost Component Structure ............................... 3489.5.2 Costing Version ................................................ 3489.5.3 Cost Component Split in Controlling Area

Currency .......................................................... 3509.5.4 Cross-Company Costing .................................... 351

9.6 Miscellaneous ............................................................... 3529.6.1 Error Management ........................................... 3529.6.2 Parameters for Error Management .................... 353

9.7 Summary ...................................................................... 354

10 Standard Cost Estimate ............................................... 355

10.1 Create Standard Cost Estimate ...................................... 35610.1.1 Costing Data .................................................... 35610.1.2 Dates ............................................................... 35710.1.3 Quantity Structure ............................................ 359

10.2 Mark and Release ......................................................... 36110.3 Costing Run .................................................................. 364

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Contents

10.3.1 Costing Data .................................................... 36410.3.2 Dates ............................................................... 36610.3.3 Valuation ......................................................... 36610.3.4 Costing Run Steps ............................................ 366

10.4 Summary ...................................................................... 378

11 Preliminary Cost Estimate ........................................... 379

11.1 Create Preliminary Cost Estimate ................................... 37911.2 Production Process ....................................................... 38211.3 Transfer Control ............................................................ 38211.4 Mass Processing ............................................................ 38511.5 Summary ...................................................................... 386

12 Unit Cost Estimate ...................................................... 387

12.1 Base Planning Object .................................................... 38712.1.1 Item ................................................................. 38812.1.2 Category .......................................................... 38912.1.3 Resource .......................................................... 39012.1.4 Plant/Activity ................................................... 39012.1.5 Quantity ........................................................... 39012.1.6 Value – Total .................................................... 39112.1.7 Cost Element .................................................... 391

12.2 Material Cost Estimate Without Quantity Structure ....... 39112.3 Summary ...................................................................... 393

PART III Cost Object Controlling

13 Preliminary Costing ..................................................... 397

13.1 Production Order Control ............................................. 39813.1.1 Costing Variant for Planned Costs ..................... 39913.1.2 Costing Variant for Actual Costs ....................... 40013.1.3 Costing Sheet ................................................... 40113.1.4 Overhead Key .................................................. 40113.1.5 Results Analysis Key ......................................... 401

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Contents

13.1.6 Variance Key .................................................... 40113.1.7 Determine Plan Costs ....................................... 401

13.2 Display Planned Costs ................................................... 40213.3 Summary ...................................................................... 404

14 Simultaneous Costing .................................................. 405

14.1 Goods Movements ........................................................ 40514.1.1 Debits .............................................................. 40514.1.2 Credits ............................................................. 409

14.2 Confirmations ............................................................... 41214.2.1 Secondary Postings ........................................... 41214.2.2 Create Production Order .................................. 41314.2.3 Confirm Activities ............................................. 41714.2.4 Default Activities .............................................. 41914.2.5 Operation Sequence ......................................... 420

14.3 Report Costs ................................................................. 42114.4 Summary ...................................................................... 423

15 Overhead ...................................................................... 425

15.1 Configuration ................................................................ 42515.2 Overhead Period-End Processing .................................. 42615.3 Summary ...................................................................... 428

16 Work in Process ........................................................... 429

16.1 WIP Configuration ........................................................ 43016.1.1 Define Results Analysis Keys ............................. 43016.1.2 Define Results Analysis Versions ....................... 43116.1.3 Define Valuation Method (Target Costs) ........... 43416.1.4 Define Valuation Variant for WIP and Scrap ...... 43616.1.5 Assignment of Valuation Variant for WIP .......... 43716.1.6 Define Line IDs ................................................ 43816.1.7 Define Assignment ........................................... 43916.1.8 Define Update .................................................. 44016.1.9 Define Posting Rules for Settling WIP ............... 442

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Contents

16.2 Results Analysis Configuration ....................................... 44316.3 WIP Period-End ............................................................ 447

16.3.1 Product Cost by Period ..................................... 44716.3.2 Product Cost by Order ...................................... 452

16.4 Summary ...................................................................... 452

17 Variance Calculation .................................................... 453

17.1 Types of Variance Calculation ........................................ 45317.1.1 Total Variance .................................................. 45317.1.2 Production Variance ......................................... 45417.1.3 Planning Variance ............................................. 454

17.2 Variance Configuration .................................................. 45517.2.1 Define Variance Keys ........................................ 45517.2.2 Define Default Variance Keys for Plants ............ 45717.2.3 Define Variance Variants .................................. 45717.2.4 Define Valuation Variant for WIP and Scrap ...... 45917.2.5 Define Target Cost Versions .............................. 460

17.3 Variance Categories ...................................................... 46317.3.1 Input Variances ................................................ 46317.3.2 Output Variances ............................................. 464

17.4 Variance Period End ...................................................... 46617.4.1 Product Cost by Period ..................................... 46617.4.2 Product Cost by Order ...................................... 471

17.5 Summary ...................................................................... 472

18 Settlement ................................................................... 473

18.1 Settlement Configuration .............................................. 47318.1.1 Settlement Profile ............................................ 47318.1.2 Allocation Structure ......................................... 47818.1.3 Source Structure ............................................... 48518.1.4 Profitability Analysis (CO-PA) Transfer

Structure .......................................................... 48718.2 Settlement Period-End Process ..................................... 492

18.2.1 Parameters ....................................................... 49318.2.2 Processing Options ........................................... 495

18.3 Summary ...................................................................... 497

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Contents

19 Special Topics ............................................................... 499

19.1 Sales Order Controlling ................................................. 49919.1.1 Configuration ................................................... 50019.1.2 Period-End Processing ...................................... 508

19.2 Subcontracting .............................................................. 51419.2.1 MRP 2 View ..................................................... 51419.2.2 Purchase Order ................................................ 51519.2.3 Monitoring Stocks Provided to Vendor ............. 51619.2.4 Goods Receipt of End Product .......................... 518

19.3 Material Ledger ............................................................ 51819.3.1 Multiple Currencies or Valuations ..................... 51819.3.2 Actual Costing .................................................. 51919.3.3 Configuration ................................................... 52019.3.4 Period-End Processing ...................................... 527

19.4 Delivery Costs ............................................................... 53019.4.1 Purchased Material Consumption Account ....... 53019.4.2 Configure Costing Variant ................................. 53119.4.3 Assign Conditions to Origin Groups .................. 53219.4.4 Assign Conditions to Purchasing Info Records ... 53319.4.5 Assign Origin Groups to Cost Components ....... 533

19.5 Templates ..................................................................... 53419.5.1 Define Environment ......................................... 535

19.6 Mixed-Cost Estimate ..................................................... 53619.6.1 Quantity Structure and Costing Version ............ 53719.6.2 Create Procurement Alternative ........................ 53819.6.3 Define Mixing Ratios ........................................ 53919.6.4 Create a Mixed-Cost Estimate .......................... 540

19.7 Cost Estimate User Exits ................................................ 54219.7.1 Cross-Company Code Costing ........................... 54319.7.2 Production Resource/Tool Costing .................... 54419.7.3 Bulk Material Costing ....................................... 54419.7.4 Material Valuation ............................................ 54519.7.5 Costing Reports ................................................ 545

19.8 Summary ...................................................................... 546

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Contents

PART IV Information System

20 Information System ..................................................... 551

20.1 Product Cost Planning ................................................... 55220.1.1 Analyze Costing Runs ....................................... 55220.1.2 List Material Cost Estimates ............................. 55620.1.3 Detailed Reports .............................................. 55720.1.4 Object Comparisons ......................................... 557

20.2 Cost Object Controlling ................................................ 56120.2.1 Product Drilldown Reports ............................... 56220.2.2 Summarization Hierarchy Reports ..................... 56720.2.3 Detailed Reports .............................................. 57420.2.4 Line Item Reports ............................................. 577

20.3 Production Order Reports ............................................. 57820.3.1 Order Information System ................................ 57820.3.2 Order Selection ................................................ 581

20.4 Cost Center Reports ...................................................... 58320.5 Summary ...................................................................... 58620.6 Book Summary .............................................................. 587

20.6.1 Integrated Planning .......................................... 58720.6.2 Product Cost Planning ...................................... 58820.6.3 Cost Object Controlling .................................... 58920.6.4 Information System .......................................... 589

20.7 Looking Ahead ............................................................. 590

Appendices ........................................................................ 593

A Additional Resources .............................................................. 595B Bibliography ........................................................................... 599C Glossary ................................................................................. 601D The Author ............................................................................. 625

Index ........................................................................................... 627

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Integrated planning allows you to plan production and procurement costs based on planned sales quantities.

2 Integrated Planning

Integrated planning allows you to take advantage of a fully integrated system such as an SAP system. You can enter a sales plan to determine a production plan and projected manufacturing costs. Together with cost center plan costs, this allows you to calculate planned activity rates and standard cost estimates, which plan the cost of manufacture for each product. This process, also known as driver-based planning, allows you to plan costs based on sales quantities, which is a best practice in the manufacturing industry.

One of the main advantages of using the integrated planning functional-ity is that you can compare planned costs with actual costs, and you can determine the reason for the difference between them, which forms the basis for variance analysis. You can then use this as an iterative process to improve your period-by-period and year-by-year sales and production planning.

There are many alternatives for entering and processing plan data in SAP systems. In this chapter, we’ll examine entering sales data in Profitability Analysis (CO-PA), and then follow a typical flow from sales and opera-tions planning (SOP) to long-term planning to Cost Center Accounting (CCA). A sales manager typically enters a sales plan, either into CO-PA or SOP, and analyzes multiple sales scenarios. A preferred sales plan is then converted into a production plan, which is then transferred to long-term planning.

The bill of material (BOM) and routing are then accessed by long-term planning to determine component procurement—and cost center capac-ity—requirements. A BOM is a hierarchical structure of components and subassemblies, whereas a routing lists operations and standard values required to manufacture a finished product.

Read Chapter 5 for more information on BOMs and routings

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Activity scheduled quantities are then transferred from long-term plan-ning to CCA , where, together with cost center planning data, activity and overhead rates are calculated. Let’s start initial planning by entering a sales plan in CO-PA.

2.1 Profitability Analysis

Sales managers can enter the quantity of fi nished products they expect to sell in future budget periods with Transaction KEPM or by following the menu path Accounting • Controlling • Profi tability Analysis • Planning • Edit Planning Data. Enter the operating concern and press (Enter) to display the screen shown in Figure 2.1.

Figure 2.1 Planning Package for CO-PA Planning

Expand Planning levels IDES100 and double-click planning package IDES100 to display Planning methods in the lower left of the screen. Expand the Enter planning data node, and then double-click IDES100 to enter planning data on the right side of the screen.

After you’ve entered sales planning data in CO-PA, you can do one of the following:

EE Transfer quantities to SOP (or other components) by following the menu path Accounting • Controlling • Profi tability Analysis •

Planning • Integrated Planning.

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Sales and Operations Planning 2.2

EE Create a planning scenario with Transaction MS31 and access the CO-PA data directly with long-term planning, which we’ll discuss further in Section 2.3.

We’ll follow an example of transferring CO-PA data to SOP so you can see this additional functionality.

2.2 Sales and Operations Planning

You can enter a sales plan for future periods and fi scal years directly into the SOP component, or you can transfer the data from other components such as CO-PA. The sales plan can be entered for a product group and dis-aggregated to lower members or entered directly for individual materials. The production plan is determined from the sales plan and then transferred from SOP to long-term planning. If the production plan is determined from the sales plan on a spreadsheet, it can be entered manually into planned independent requirements in demand management.

Enter a sales plan for a material into SOP with Transaction MC88 or by following the menu path Logistics • Production • SOP • Planning • For Material • Change. The data entry screen shown in Figure 2.2 is displayed.

Figure 2.2 Sales and Operations Planning Entry Screen

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Sales plan quantities are entered in the Sales row, and production plan quantities are entered in the Production row. Figure 2.2 displays an example of the production plan offset one month forward in time from the sales plan to help ensure that sales plan delivery dates are met. The production plan may also need to be different from the sales plan due to known production capacity requirements .

Example

If the sales plan is to sell a quantity of 40 in month 12/2011, you may need to adjust the production plan to manufacture a quantity of 10.000 in the four preceding months.

After the production plan is determined, it is transferred to demand man-agement with Transaction MC74 or by following the menu path Logistics • Production • SOP • Planning • For Material • Transfer Material to Demand Management. The screen shown in Figure 2.3 is displayed.

Figure 2.3 Transfer Production Plant to Demand Management

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Long-Term Planning 2.3

You transfer either the sales plan or production plan, for either an indi-vidual material or product group (PG) members by making the appropriate selection in the Transfer strategy and period section, and then clicking the Transfer now button.

Now that we’ve converted the sales plan into a production plan and trans-ferred the production plan to demand management, let’s start working with this information in long-term planning.

2.3 Long-Term Planning

Long-term planning allows you to enter medium- to long-term production plans into the system. Medium-term production plans generally involve production quantities between three months and three years into the future. Long-term production plans can plan production quantities as far into the future as you need. The production plan represents planned independent requirements, which are used to meet two downstream prerequisites necessary to create cost estimates:

EE They generate requirements for purchased items. These can be used to request vendor quotations, negotiate raw material prices, and ensure that purchasing info records are current. Purchasing info records are commonly used in cost estimates to determine the estimated planned price of components.

EE They can be used to transfer scheduled activity requirements to cost centers. Cost center planned costs, divided by scheduled activity requirements, provide an estimate of the planned activity price used by cost estimates to determine labor costs.

You can transfer the production plan from SOP, as previously discussed in Section 2.2, or enter it directly with Transaction MD62 or by follow-ing the menu path Logistics • Production • Production Planning • Long-Term Planning • Planned Independent Requirements • Change. The data entry screen shown in Figure 2.4 is displayed.

Planned independent requirements

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Figure 2.4 Change Planned Independent Requirements Initial Screen

Complete the fi elds in this screen, and press (Enter) to display the planned independent requirements planning table as shown in Figure 2.5.

Figure 2.5 Change Planned Independent Requirements

The requirements displayed in Figure 2.5 correspond with the produc-tion plan transferred from SOP that was shown earlier in Figure 2.2. The requirements can be changed, or additional requirements can be entered directly. The A (version active) checkbox shown in Figure 2.5 determines if the requirements are relevant to operative material requirements plan-ning (MRP). If relevant to operative MRP , requirements will result in the generation of planned orders , which can be converted to production orders

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for in-house production or purchase requisitions for external procurement . The system also explodes the BOM for assemblies produced in-house and generates dependent requirements for material components.

To generate dependent requirements, we fi rst need to create a planning sce-nario that combines all of the parameters used in long-term planning .

2.3.1 Create Planning Scenario

The fi rst step in using long-term planning is to defi ne planning scenarios, which control how long-term planning is carried out. To compare dif-ferent versions of planned independent requirements or plants, you can create various planning scenarios and then compare the planning results of these scenarios. You create a planning scenario with Transaction MS31 or by following the menu path Logistics • Production • Production Planning • Long-Term Planning • Scenario • Create. Give the plan-ning scenario a name and description, and select the long-term planning indicator . Press (Enter) to display the screen shown in Figure 2.6.

Figure 2.6 Planning Scenario Details

Assign a version for the planned independent requirements by clicking the Planned Independent Requirements button and a version for the plants by clicking the Plants button. After you’ve checked the Control parameters, release the planning scenario for planning by clicking the Release + Save button.

Long-term planning

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After you’ve released the planning scenario, you can only change the allo-cation of the planned independent requirements versions. Only released planning scenarios can be used in a long-term planning run.

Click any of the checkboxes in this screen, and press (F1) to display detailed information. The Consider sales orders checkbox is of par-ticular importance because it determines whether sales orders are taken into account in long-term planning. Sales orders are automatically copied from operative planning and cannot be changed in long-term planning. The customer requirements from operative planning consume planned independent requirements in long-term planning. If you do not select this checkbox, only planned independent requirements are taken into account. You can use this checkbox for scenario planning.

Example

Government defense contracts can extend many years into the future, long before sales orders are created. You determine production planning require-ments by entering planned independent requirements in place of future sales orders. If you select the Consider sales orders checkbox in Figure 2.6, sales orders that are created in the future automatically consume the planned independent requirements, which were manually entered. This avoids the need to manually remove planned independent requirements as sales orders are created.

Now that we’ve created a planned scenario, we are ready to run and evaluate long-term MRP and send the results to the purchasing informa-tion system.

2.3.2 Long-Term Planning Run

You can carry out a long-term planning run either for an individual mate-rial or collectively for all materials in a plant. All planned independent requirements and sales orders, depending on your setting in Figure 2.6, within the planning scenario time frame are analyzed. The dependent requirements for all manufactured and purchased items are determined from the operative BOM. You can also carry out long-term planning with a separate BOM for long-term planning. Simulative dependent require-ments and simulative planned orders are created for all components.

Consider sales orders

Simulative planned orders

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You can carry out a collective long-term planning run for a planning scenario by using Transaction MS01 for online processing, by using Transaction MSBT for background processing, or by following the menu path Logistics • Production • Production Planning • Long-Term Planning • Long-Term Planning • Planning Run. The screen shown in Figure 2.7 is displayed.

Figure 2.7 Collective Long-Term Planning Run Initial Screen

The Planning Scenario fi eld determines which version of planned independent requirements the planning run will analyze. The planning scenario must be released before you can use it in a planning run.

You can restrict the selection with the Scope of planning fi eld and also by Plant. The usual procedure is to run MRP for the entire plant. This is often a batch job run at night, although you may also run it online. You can also restrict MRP processing time with the following processing keys:

EE NETCH (net change) Allows you to restrict MRP processing time by only analyzing materi-als that have undergone a planning-relevant “change” since the last planning run, such as sales order entry, purchase order entry, or stock release.

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EE NETPL (net change) Restricts the planning run by planning horizon . Any changes made outside the planning horizon will not be considered in the planning run.

EE NEUPL (regenerative planning) Disregards whether planning-relevant changes were made to the mate-rial. All materials with an MRP-relevant planning type in the material master MRP1 view are processed.

You can choose whether or not to create an MRP list that displays the results of the last planning run for a material. It remains unchanged until the next MRP run. The MRP list contains exception messages that can assist the planner. Exception messages indicate, for example, whether an order should be postponed or that the safety stock quantity has been exceeded.

After you have reviewed all of the planning run parameters, press (Enter)to start the planning run. When the planning run is complete, you will see a results screen listing statistics and parameters of the planning run. If you chose to create an MRP list in the selection screen in Figure 2.7, then you will also see a list of materials included at the top of the plan-ning run results screen, as shown in Figure 2.8.

Figure 2.8 Long-Term Planning Results Screen with MRP List

Click an individual material in the Material column, and then click each of the three buttons at the top of the screen in turn to produce the following results:

EE MRP list Directs you to a list of the simulative planned orders created for that material during the last planning run.

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41


EE Curr.list Directs you to the stock/requirements list, which is a dynamic list dis-playing the current status of stocks, requirements, and receipts. Changes are immediately visible as soon as the stock/requirements list is called up or the elements are read from the database using the refresh func-tion in the stock/requirements list.

EE Except.grp Displays a list of defi nitions of the exception messages for each of the eight Selection Group columns, as shown in Figure 2.9. Exception messages are created during the planning run and are analyzed by the MRP controller .

Figure 2.9 Defi nition of Planning Run Exception Messages

You can display the long-term MRP list at any time by using Transac-tion MS05 for an individual material, by using Transaction MS06 for a collective display, or by following menu path Logistics • Production •

Production Planning • Long-Term Planning • Evaluations.

Now that we’ve executed a planning run and evaluated the results, let’s look at how to transfer the results to the purchasing information system and CCA.

2.3.3 Transfer Requirements to Purchasing

Long-term MRP generates simulative planned orders based on planned independent requirements. Simulative planned orders are not converted into purchase requisitions or production orders, and are for planning purposes only. Simulative data for external procurement can be trans-ferred to the purchasing information system and evaluated for future purchasing requirements .

Future purchasing requirements

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42


This information can be used as the basis for generating vendor requests for quotations (RFQs), negotiating raw material prices, and ensuring that purchasing info records are current. Updated purchasing info records are then used by cost estimates as the basis for determining raw material purchase prices.

You can transfer long-term planning data to the purchasing information system with Transaction MS70 or by following the menu path Logistics •

Production • Production Planning • Long-Term Planning • Evalu-ations • Purchasing Information System • Set Up Data. The screen shown in Figure 2.10 is displayed.

Figure 2.10 Set Up Purchasing Info Data from Long-Term Planning

The Version Info Structure S012 fi eld allows you to determine the receiving plan version of the purchasing plan data. If you do not enter a version , the system uses the planning scenario as the planning version number. You can also choose how the purchase order value is calculated, in the Ord.value calculation section. Complete the selection screen, and click the execute icon to run the transaction. Figure 2.11 shows an example of messages displayed after running Transaction MS70.

The messages indicate the quantity of information transferred. You can also run a report on long-term planning purchasing data with Transaction

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43


MCEC or by following the menu path Logistics • Production • Produc-tion Planning • Long-Term Planning • Evaluations • Purchasing Information System • Material. The selection screen shown in Figure 2.12 is displayed.

Figure 2.11 Set Up Purchasing Info Data from Long-Term Planning

Figure 2.12 Purchasing Information System Selection Screen

The Planning Scenario fi eld allows you to choose the long-term plan-ning scenario to base the analysis on. You can choose how the purchase order value is calculated in the Ord.value calculation section. Complete the selection screen, and click the execute icon. Figure 2.13 shows an example of the data displayed.

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44


Figure 2.13 Purchasing Information System Data

This report provides information on future purchasing requirements . You can display purchasing requirements per period by clicking the PO value column header and then the time series (lightning bolt) icon shown in Figure 2.13. An example of the output screen is displayed in Figure 2.14.

Figure 2.14 Time Series of Purchasing Requirements

Click the icon (two squares) to the right of PO value to toggle among pur-chase order value , quantity , and price . This provides useful data for obtain-ing vendor quotations for future requirements of purchased materials.

Activated planned independent requirements are also visible in operative MRP . In addition to data transferred to the purchasing information system, the purchasing department has visibility of activated planned independent requirements through planned orders generated by operative MRP and purchase requisitions converted from planned orders. These also can be the basis for updating purchasing info records.

Read Chapter 5 for more details

on purchasing info records

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45


2.3.4 Transfer Activity Quantities to CCA

In addition to ensuring that purchasing info records are up to date, long-term planning activity quantities can be transferred to CCA . From the production plan for products, long-term MRP generates requirements for all lower-level components and work centers . The activity requirementsare then transferred to corresponding cost centers with Transaction KSPP or via menu path Logistics • Production • Production Planning • Long-Term Planning • Environment • Activity Requirement • Transfer toCost Centers. The screen shown in Figure 2.15 is displayed.

Figure 2.15 Transfer Planned Activity Requirements Selection Screen

This selection screen allows you to enter the parameters of the activity quantities to send to CCA. Because you are interested in activity quanti-ties sent to cost centers and activity types, select the corresponding radio button in the Level of detail: Output lists section. Complete the selec-tion screen, and click the Transfer control button, or run Transaction OMIK. Figure 2.16 shows the next screen that is displayed.

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46


Figure 2.16 Transfer Controls for Activity Requirements

Each line in Figure 2.16 corresponds to a controlling version . Versions are used to carry out scenario testing with different cost center plans, activity prices , and any other parameters in cost center planning. You can create as many versions as you like, but normally only version 0 contains both plan and actual data. To change transfer control settings, select a row, and click the details (magnifying glass) icon. Figure 2.17 shows the next screen that is displayed.

Figure 2.17 Transfer Control Defi nition Screen

You transfer SOP, MRP , or long-term planning activity quantities to CCA by making the appropriate selection in the Transfer activity require-ments from section in the screen shown in Figure 2.17. Press (F3) twice, and click the Execute button shown earlier in Figure 2.15 to start the transaction.

You can create only one transfer control per version. Figure 2.18 displays an example of the resulting list of activity requirements transferred to CCA.

You display activity quantities per period by double-clicking any scheduled activity quantity shown in the Activity scheduled column. Scheduled

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47

Cost Center Planning 2.4

quantities transferred to CCA are displayed in the planned activity price entry screen, as we‘ll discuss in Section 2.4.2.

Figure 2.18 Transfer Planned Activity Requirements

In long-term planning , we determined the component purchasing require-ments and transferred them to the purchasing information system . We also determined the scheduled activity requirements and transferred them to CCA. The next step in integrated planning is to carry out cost element planning, and then, using scheduled quantities transferred from long-term planning, calculate the planned activity rate required by cost estimates to determine activity costs.

2.4 Cost Center Planning

Cost center planning meets two requirements for variance analysis:

EE Cost element planning functions as a benchmark for comparison with actual costs as they occur. This analysis provides a measure of cost center manager performance.

EE Dividing cost center planned and activity costs by the planned activity quantity provides an estimate of the planned activity rate, which is needed by cost estimates to determine labor and activity costs .

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48


Let’s examine each of these points in further detail in the following sections.

2.4.1 Cost Element Planning

You enter the plan for primary costs by primary cost element , corre-sponding to a general ledger (GL) expense account. Examples are planned payroll and depreciation costs against corresponding cost elements for each cost center.

Determining planned workload (activity quantities) of production cost centers for the following fi scal year is a desirable prerequisite for cost center planning. Activity quantities are necessary to determine variable costs such as wages and energy . Planned activity quantities are determined from work center loads resulting from the production plan, which is in turn determined from the sales plan. You can transfer scheduled activity quantities from SOP, MRP, or long-term planning to cost center planning. You then convert the scheduled activity quantities into planned activity quantities using plan reconciliation .

You enter a primary cost plan for a cost center with Transaction KP06 or by following the menu path Accounting • Controlling • Cost Center Accounting • Planning • Cost and Activity Inputs • Change. A selec-tion screen is displayed, as shown in Figure 2.19.

Figure 2.19 Cost Element Planning Selection Screen

Refer to Chapter 3 for more

information on primary cost

elements

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49


You may see different fi elds, depending on the planning layout selected. You can scroll through available planning layouts with the left- and right-pointing arrow icons.

Any number of versions can be created, for which planning data can be entered. In this example, we use version 0. Actual costs post to version 0, and this is the version compared with target costs during variance analysis . Complete the selection screen as follows:

1. Fill in the Version, From period, To period, and Fiscal year fi elds.

2. Leave the Activity Type fi eld blank to plan for activity-independent costs.

3. Fill in the Cost Element fi eld and click the overview (mountain range and sun) icon to display the screen shown in Figure 2.20.

Figure 2.20 Cost Element Planning Screen for Cost Centers

This screen allows you to enter cost center plan fi xed costs per cost ele-ment. These are activity-independent costs, because we did not enter an activity in the Activity Type fi eld in the screen shown in Figure 2.19. To carry out primary cost planning , enter the plan cost in the Plan fi x costs in OC (object currency) column. Click the period screen (lightning bolt) icon to plan costs at an individual period level, as necessary.

If an activity type is entered in the selection screen shown in Figure 2.19, both fi xed and variable costs can be planned in the screen shown in Figure 2.20.

Several reports are available to view planning data . One such report can be viewed with Transaction KSBL or via the menu path Accounting • Con-trolling • Cost Center Accounting • Information System • Reports

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50


for Cost Center Accounting • Planning Reports • Cost Centers: Plan-ning Overview. A selection screen is displayed, as shown in Figure 2.21.

Figure 2.21 Cost Center Planning Report Selection Screen

This selection screen allows you to make entries in the Report parameters section to fi lter the values in the output screen. Complete the selection screen, and click the Execute button to start the transaction. Figure 2.22 shows an example of the plan data displayed.

Figure 2.22 Cost Center Planning Overview Report

This screen displays a summary view of planned primary costs for cost center 1600. Let’s examine how to calculate and enter activity rates.

2.4.2 Activity Price Planning

Determining the planned workload (activity quantities) of production cost centers for the next fi scal year is a best practice prerequisite for cost center planning. Activity quantities are necessary to determine variable

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51


costs such as wages and energy. Planned activity quantities are determined from work center loads resulting from the production plan, which is in turn determined from the sales plan. You can transfer scheduled activity quantities from SOP, MRP, or long-term planning to cost center planning. You then convert the scheduled activity quantities into planned activity quantities using plan reconciliation.

After cost element costs have been planned for the next fi scal year (as discussed in the previous section), you can manually calculate and enter activity rates , or the system can automatically calculate them. Many companies calculate and enter planned activity rates manually for the fi rst couple of years after system implementation. This allows them time to fi ne-tune master data and plan costs.

You enter plan activity prices for a cost center with Transaction KP26 or by following the menu path Accounting • Controlling • Cost Center Accounting • Planning • Activity Output/Prices • Change. A selection screen is displayed, as shown in Figure 2.23.

Figure 2.23 Planned Activity Price Selection Screen

This selection screen allows you to enter the version , time period, cost center, and activity type you want to plan. Complete the selection screen as follows:

1. Complete the Version, From period, To period, and Fiscal year fi elds.

Refer to Chapter 3 for activity type settings required for activity price calculation

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52


2. Complete the Cost Center and Activity Type fi elds.

3. Click the overview icon to display the screen in Figure 2.24.

Figure 2.24 Planned Activity Price Entry Screen

In this screen, you enter plan activity quantity , capacity quantity , and plan fi xed and variable activity prices. To do this, follow these three steps:

1. Complete the Plan activity and Capacity quantity fi elds.

2. Complete the Fixed USD and/or Var USD activity price fi elds.

3. Save your work.

The Plan activity quantity, entered in the second column in Figure 2.24, is required to automatically calculate the planned activity price . Another, less well-known, benefi t of entering the planned activity quan-tity is that it appears at the bottom of the standard cost center Report S_ALR_87013611 – Cost Centers: Actual/Plan/Variance. You can then compare plan and actual activity quantities in the cost center report to analyze production and cost center variance .

The Act. sched. (scheduled activity quantity) column in Figure 2.24 was previously transferred from SOP , MRP , or long-term planning , as we discussed in Section 2.3.4. This fi eld cannot be adjusted manually. You can use it to overwrite the planned activity quantity (the Plan activity column in Figure 2.24) with Transaction KPSI or by following the menu path Accounting • Controlling • Cost Center Accounting • Planning • Planning Aids • Plan Reconciliation. A selection screen is displayed, as shown in Figure 2.25.

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53


Figure 2.25 Execute Plan Reconciliation Screen

This selection screen allows you to enter the parameters to choose which cost centers and periods will be updated with the scheduled activity quantity transferred from long-term planning . Complete the screen as follows:

1. Select either the All Cost Centers or Cost center group radio but-ton.

2. Complete the Version, Period, and Fiscal Year fi elds.

3. Deselect the Test Run checkbox, and select the Detail Lists check-box.

4. Click the execute icon to start the transaction.

Figure 2.26 shows an example of the data displayed.

Figure 2.26 Plan Reconciliation List

The following points describe the columns in Figure 2.26:

EE Total plan activity corresponds to the Plan activity column in Fig-ure 2.24.

EE New plan activity corresponds to the last column in Figure 2.24.

EE Activity difference is the difference between the two columns.

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54


When you execute plan reconciliation, the planned activity manually entered in the Plan activity column in Figure 2.24 is automatically overwritten with the scheduled activity from the last column in Figure 2.24.

Now that we’ve carried out cost element and activity type planning, you can automatically calculate the planned activity price with Transaction KSPI or by following the menu path Accounting • Controlling • Cost Center Accounting • Planning • Allocations • Price Calculation. In the selection screen, you enter the version, time frame, and cost centers, and then click the execute icon.

Now that we’ve completed cost center planning, there are still some more steps to take in the integrated planning cycle. We’ll discuss these in the next section on final planning.

2.5 Final Planning

You can take some more planning steps to assist you in determining the accuracy of your initial planning in CO-PA. Let’s discuss these now.

2.5.1 Calculate Standard Costs

We’ve estimated future component procurement quantities in long-term planning and can access component quantities and prices in the purchas-ing information system.

We’ve also estimated future activity quantities in long-term planning, transferred this information to CCA, and calculated planned activity prices.

This information, together with the necessary master data and configura-tion setup we’ll discuss in following chapters, allows you to create stan-dard cost estimates. These allow you to estimate projected procurement and manufacturing costs for components and finished goods and update inventory valuation based on these planned costs.

Refer to Chapter 10 for detailed

information on standard cost

estimates

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55

Summary 2.6

After you’ve created and released standard cost estimates, you can transfer this information to CO-PA for detailed margin analysis and reporting, as we’ll discuss in the next section.

2.5.2 Transfer Standard Costs to CO-PA

You can transfer standard cost estimate cost component information to CO-PA using the valuation functionality. Refer back to the CO-PA plan data in Figure 2.1 after calculating standard cost estimates, and click the Valuate button to transfer the cost information. You can also display this data with standard CO-PA reports by running Transaction KE30 or by following the menu path Accounting • Controlling • Profitability Analysis • Information System • Execute Report. You can choose an existing report or create your own to compare planned sales and cost information.

2.6 Summary

In this chapter, we discussed the integrated planning functionality and scenarios. First, we looked at creating a sales plan in CO-PA. We then considered either creating a sales plan directly in SOP or transferring the plan from CO-PA. We converted the sales plan into a production plan that we transferred to demand planning as planned independent requirements.

We then ran long-term planning and generated planned dependent require-ments based on BOM and routing information. Purchasing requirements were analyzed in the purchasing information system. Work center loads were transferred to CCA.

Cost center activity quantities transferred from long-term planning, together with cost element planning, allowed us to calculate planned activity prices. We then considered the final planning steps of creating standard cost estimates and using the valuation functionality in CO-PA for margin reporting on planned sales and cost information.

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56


Now that we’ve considered integrated planning, we’ll next examine the following:

EE Controlling master data in Chapter 3

EE Material master data in Chapter 4

EE Logistics master data in Chapter 5

This information is a prerequisite to creating standard cost estimates, which we’ll discuss in detail in Chapter 10.

Note

The material presented in this chapter outlines some basic procedures and best practices for CO-PA planning. More detailed information on this func-tionality can be found in the SAP PRESS book Controlling with SAP––Practical Guide (2012).

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627

Index

A

ABAP program, 543ABC indicator, 104Account assignment

Automatic, 70Default, 70

Account determination, 63Accounting, 131Account modifier, 133, 407Accrual account, 145Active pharmaceutical ingredient, 117Activity

Confirmation, 65, 67, 68, 411, 412Input planning, 95Plan, 95Price, 35, 46, 92Rate, 51Scheduled, 95

Activity-Based Costing (ABC), 534, 589Activity-independent cost, 49Activity price calculation, 253, 254Activity price planning, 98Activity quantity, 534Activity quantity parameter, 45Activity type, 49, 51, 59, 86, 295, 534

Activity quantity, 91Activity unit, 88, 96Actual price indicator, 90Actual quantity set, 91Allocation cost element, 90Alternative output factor, 96Alternative output unit, 96Average price, 92Basic data, 87, 88Category, 88Change document, 97Confirmation, 534Cost center category, 88Description, 87Group, 99History, 96Indicator, 93

Indirect allocation, 89Indirect determination, 89Lock indicator, 94Long text, 87Manual allocation, 89Manual entry, 89Multiple categories, 88No allocation, 89Output, 95Planning, 54Plan Price indicator, 90Plan quantity set, 91Predistribution of fixed costs, 93Price indicator, 90Scheduled activity, 91Sender, 94Standard category, 88

Actual cost component, 152Actual costing, 135, 144, 145, 147, 519,

601, 609Activate, 526Period-end, 527Preliminary periodic unit price, 527Run, 528

Actual cost, 461Additive cost estimate, 249Allocation structure

Account assignment category, 482Assessment, 478Assessment cost element, 481, 484Assignment, 479Cost element completeness, 479Cost element uniqueness, 479Overview screen, 479Sender, 478Settlement cost element, 484Settlement receiver, 482, 483Source, 480Source cost element, 480, 484

Alternative BOM, 110, 121Alternative sequence, 122, 321Alternative unit of measure, 103API, 117

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628

Index

Application help, 591Apportionment structure, 109, 165Area of responsibility, 73Assembly scrap, 106, 415Automatic account assignment, 64, 70,

72Automatic account determination, 407Automating communication, 132Auxiliary cost component

Activated, 263Structure, 262, 271

B

Backflushing, 417Balance sheet account, 623Base, 226Base planning object, 387

Development process, 391Drag-and-drop, 393Explode, 392Item, 392Master data, 388Multilevel, 393Spreadsheet format, 388

Base unit of measure, 102, 415Basic dates, 415Batch, 134Beginning inventory, 150Beverage manufacturer, 535Bill of material (see also BOM), 74BOM, 161

Administration, 168Alternative, 162, 317Application, 312Component, 163Component scrap, 165Co-product, 165Costed multilevel, 250, 268, 270Costing, 121, 316Costing relevancy, 167Document assignment, 169Fixed quantity, 165General item overview, 163Group, 121Item category, 164

Item number, 163Item text, 167Material, 162Material component, 195Net ID checkbox, 165Operation scrap, 165Production, 122, 316Recursive, 166Text item, 165Usage, 162, 321Validity period, 169

BOM applicationSelection ID, 313

BOM item, 166Administration, 168Apportionment structure, 165Basic data, 163Bulk material, 168Category, 163, 164Change date, 169Componenet scrap, 165Costing relevancy, 167Creation date, 169Linked document, 170Number, 163Operation scrap, 165Production relevant checkbox, 167Quantity structure date, 169Recursiveness allowed, 166Status/long text, 166Validity period, 169Valuable component, 165

BOM usage, 121Bottom line, 411Bulk material, 109, 168, 544

BOM item, 544Cost center, 544Costing, 542Error message, 545Itemization, 545Overhead cost component, 544

Business area, 80, 199Business process, 207Business transaction

External, 60Within controlling, 60

399 Book_CS4.indb 628 12/1/11 5:46 PM

629

Index

C

Calculate activity price, 254Calculation base, 117, 260

Possible entry, 260Capacity, 180

Available, 178Button, 178Category, 177Header, 178Labor, 177Machine, 177Machine outage, 177Planning, 173Pooled, 179

Capacity category, 179Scheduling, 179

Cement tile, 166Chart of accounts, 68, 406, 409Company code, 204, 249, 261, 293, 407Company code currency, 136, 149Comparison value, 554Component

Overview, 416Quantity, 54

Component scrap, 113, 165Conditions, 290Condition table

Company code, 532Condition type, 531Origin group, 531Valuation area, 532

Condition type, 287, 292Company code, 293Duty, 293Freight, 293Insurance, 293

Configurable material, 499Configure automatic postings

Documentation, 408, 434Confirmation, 126, 412

Activity, 470Expected quantity, 418Goods movement, 418Labor, 471Line item detail, 470

Per operation, 421Production order, 421Time event, 417Time ticket, 417

Consolidated financial statement, 150Constant activity price, 92Consumption account, 405, 531

Identify, 531Contribution margin, 261Control cost, 461, 564Control key, 174, 175

Auto goods receipt, 175Confirmation, 176Cost indicator, 175Detailed information, 175External processing, 176Overview, 175Rework indicator, 175

Controlling, 59, 101, 140, 161, 239Area, 70, 74, 199, 544Level, 205Master data, 59Standard reports, 65

CO-PAPlan data, 32Valuation, 55

Co-product, 165Fixed-price, 125Indicator, 109

CostAccountant, 242, 250Activity confirmation, 405Actual, 31, 405, 421, 601Administrative, 241, 249Analysis, 250, 391Analyze, 263By period, 422Categorizing, 260Cost center, 420Cumulated, 422External processing, 195Filter, 247Fixed, 93, 269Goods movement, 405Initial planning, 387Initial research, 391

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630

Index

Labor, 35, 47Lot size-independent, 106Manually plan, 387Manufacturing, 80, 206, 240, 242,

247Miscellaneous, 253Object, 60, 70Ordering, 106Other, 251Overhead, 64, 425Plan, 405Planned, 355Primary, 240, 241, 412, 425Procure component, 355Procurement, 241Produce assembly, 355Reconcile, 60Rollup, 246Sales and administration, 242Secondary, 240Storage, 106Summarization, 250Transportation, 343Type, 60Variable, 93, 244, 269

Cost center, 67, 73Activate, 75Activated status, 75Activity price planning, 52Activity type, 86Address, 85Administrative, 80, 88Advanced functionality, 92Advanced reporting, 68Assessment, 99Basic data, 75, 82Block, 83Business area, 80Category, 79, 88Change document, 86Chart of accounts, 80Communication, 85Company code, 80Control, 82Currency, 81Debit, 412

Default, 70Department, 79Description, 78Distribution, 99Drag and drop, 75Formula planning, 84Functional area, 80, 206, 607Group, 74, 77Hierarchy area, 80History, 73, 86, 97Inactive status, 75Input planning, 94Line item report, 585Lock checkbox, 83Long text, 79Manager, 47, 65Master data, 74Overhead, 67Overhead rates, 85Person responsible, 79Plan activity quantity, 90Plan reconciliation, 53Planning, 47, 54Primary Cost Planning, 94Production, 48, 67, 412, 417Profit center, 81, 615Reassign, 78Receiver, 93, 94Record quantity checkbox, 82Report, 52, 79Restrict activity types, 79Revenue, 83Sender, 93, 94Service, 93Standard hierarchy, 74, 584Standard report, 63Target cost analysis, 82Template, 83, 84Total cost, 83Under-absorption/over-absorption,

90, 411, 420User responsible, 79Variable cost, 93Variance, 52Work center, 184

399 Book_CS4.indb 630 12/1/11 5:46 PM

631

Index

Cost Center Accounting (CCA), 32, 45, 46, 241

Cost component, 117, 247, 249, 266, 530Assignment, 241Attribute, 243Blank entry, 251Column, 268Commercial inventory, 248Compare, 250Configuration, 239Control section, 245Cost component view, 255Cost element, 251Cost of goods manufactured, 246, 253Cost roll up checkbox, 246Cost summarization, 250, 268Delta profit for group costing, 249Details screen, 244Display as columns, 242Energy, 253External procurement, 249Filter, 247Filter criteria, 249, 255Group, 242, 250, 265Group 1 field, 250, 268Group 2 field, 250, 268Group key, 266Include all materials, 251Increasing over time, 240Individual, 267Initial cost split indicator, 249Inventory valuation, 246, 249Labor, 251, 270Material, 270, 545Maximum number, 240Not assigned, 251Organizational unit, 261Origin group, 251Overhead, 270, 545Primary, 253, 254Sales and administration costs, 248Source, 253Split, 240Structure, 117, 241, 243, 244Subtotal, 268Target, 253

Tax inventory, 248Terminology, 239, 243Total material group, 243Transfer price surcharge, 249Transfer structure, 241, 253View, 242, 247, 248, 255

Cost component group, 265Assign cost components, 266Create, 266, 267Existing, 266Information message, 266Key, 266Maintain, 266Maximum number, 266Number, 267Overview screen, 266Report columns, 269Summary, 250

Cost component split, 254Auxiliary, 241, 534Cost of goods manufactured, 253Initial, 241Main, 241, 534Primary, 240, 253, 254, 262Principal, 262

Cost component structure, 243, 249, 253, 261, 534Activate source, 253Active, 270Active checkbox, 243Assignment, 242Auxiliary, 262, 263, 271Check organizational unit, 263, 348Company code, 261Configuration, 243Costing variant, 262Different across plants, 261Main, 262, 271Masking, 262Organizational unit, 255, 261Overview screen, 243Plant, 262Source, 253

Cost component view, 255, 257Calculation base, 259Cost of goods sold, 260Inventory valuation, 261

399 Book_CS4.indb 631 12/1/11 5:46 PM

632

Index

Overhead calculation, 259, 282Overview screen, 256Possible entry, 259Summarized, 268

Costed multilevel BOM, 250, 265, 270Cost element, 49, 59, 60, 117, 228, 239,

249, 251, 428, 534Assessment, 67Attribute mix, 68Basic data, 62Category, 62Category change, 63, 64Change document, 73Collective display, 71Default, 90Default account assignment, 70Define attribute, 68Description, 62, 66Expense, 65From, 251Group, 67, 228Indicator, 68Masked, 439Master data, 70Name, 62Numbering logic, 67Physical inventory, 63Planning, 47, 54, 55Primary, 48, 60, 61, 62, 410, 411Purchase price difference, 63Range, 228, 251Record quantity checkbox, 68Secondary, 60, 62, 65, 237, 412To, 251Unit of measure field, 69Valid from, 62Valid to, 62

Cost estimate, 124, 247, 543Additive, 241, 249, 342, 343Automatic, 294Compare, 559Component, 335Cost component, 293, 545, 561Cost component view, 259Costing data tab, 263Create, 243Current button, 557

Custom report, 545Details, 553Display, 255Display screen, 258Enhancement, 542Error, 340Example report, 546Future, 324Higher-level, 337Individual, 551Integrity, 345Itemization, 125, 292, 346, 347, 545List, 551, 556List reports, 250, 265Log, 346Lower-level, 337, 340Menu bar, 545Not assigned, 251Period-based, 324Preliminary, 388, 558Raw material, 293Release, 159, 295Sales order, 336Save error log, 345Scale, 218Source list, 223Standard, 247, 249, 250, 261, 321,

340, 388, 558Standard layout, 545Status, 345Total cost, 260, 283Unit, 249, 294User exit, 542Without quantity structure, 125,

252, 336, 391With quantity structure, 118, 393

Costing, 101Preliminary, 425Simultaneous, 425

Costing lot size, 124, 211, 335Costing run, 59, 116, 124, 340, 356,

364Allow marking, 374Analysis, 371, 374, 552Cockpit, 590Compare, 554Costing, 369

399 Book_CS4.indb 632 12/1/11 5:46 PM

633

Index

Costing data, 365Costing level, 370Costing sheet, 366Create, 364Data, 551Dates, 366Display errors only, 370Exceptions, 554Existing, 364Highest-level assembly, 370Inventory valuation, 372Log, 371Lowest-level material, 369Maintain, 364Mark, 374Marking allowance, 374Material master price, 555Material overview, 368, 375Other prices, 375Parallel processing, 370Parameter, 369, 375Release, 375, 377Selection, 366Status, 369Steps, 366, 551Structural explosion, 368Threshold value, 554Valuation, 366Valuation variant, 366

Costing sheet, 67, 117, 226, 397, 412, 534, 536Calculation base, 227Configuration, 226, 425Cost element, 227Costing variant, 234Credit, 237Current settings, 237Default, 232Dependency, 229Fixed cost, 228Origin group, 228Overhead rate, 228Percentage, 237Quantity-based, 237Sales order, 234Variable cost, 228

Costing status

FR, 363, 377VO, 362

Costing type, 259, 274Additive cost estimate, 281Group valuation, 278Inventory valuation, 277Legal valuation, 277Miscellaneous, 282Overhead, 259, 283Parallel valuation, 279Partner version, 283Price update, 277Profit center valuation, 279SAP standard, 276Save parameters, 280Transfer pricing, 279Valuation view, 277

Costing variant, 131, 141, 158, 261, 263, 270, 274, 531, 545Actual, 199, 201, 400Additive cost, 343Assignments tab, 263, 270Change transfer control, 337Component, 333Configurable product, 341Configuration, 273, 333Controlling area currency, 351Control parameters, 275, 333Control tab, 333Cost component split, 346, 350Cost component structure, 270Costing type, 275, 276Costing version, 348Cross-company costing, 351Customers, 341Date control, 308Error management, 353Existing product design, 337Highest-level material, 340Make-to-order scenario, 341New product development, 337Overview, 275, 334Pass on lot size, 335Plan, 400Planned, 199PPC1, 274PPP3, 201

399 Book_CS4.indb 633 12/1/11 5:46 PM

634

Index

PREM, 200Product development, 278Proposed improvement, 340Prototyping, 337Quantity structure control, 311Quantity structure indicator, 336Quantity structure tab, 334Reference variant, 327Sales order, 341SAP standard, 274Saving allowed, 344Status, 340Tabs, 333Transfer control, 322, 338Transfer cost estimate of order BOM,

341Unit cost estimate, 337Update tab, 344Valuation variant, 275, 285ZPC1, 274

Costing version, 540Cost object, 60, 410

Default, 69Cost of goods manufactured (COGM),

240, 253, 255Cost of goods sold (COGS), 260, 261Cost of sales, 65, 431

Accounts, 65COS, 65Customer, 65Goods receipt, 65Inventory, 65Posting, 65Shipped, 65

Cost of sales accounting, 81, 206Cost viability, 131Credit, 226, 410

Key, 237Cross-company code costing, 543

Activate, 544Current valuation, 544

CumulativeDifference, 150Inventory, 150

Currency, 136, 145, 147Company code, 136, 149

Group, 150Current

Period, 136Planned price, 130Standard price, 130Valuation, 139

D

DataMaster, 59Transactional, 88

Database update, 156Data browser, 133, 531

Selection screen, 531Data collection

Product drilldown report, 565Summarization hierarchy, 572

Date control, 308Costing date from, 309Costing date to, 310Manual entry checkbox, 309Quantity structure date, 310Valuation date, 310

Debit, 405Default

Activity, 420Activity quantity, 419Yield, 419

Default account assignment, 69Default values for buyers, 220

Assign, 220Parameter ID EVO, 220User profile, 220

Deletion flagAdditional information, 533

Delivery cost, 291, 530, 589Cost component, 530, 589Origin group, 530

Delivery date, 34Delta profits, 249Demand management, 34Dependency field, 229Dependent requirements

Collectively only, 113

399 Book_CS4.indb 634 12/1/11 5:46 PM

635

Index

Individual and collective, 112Individual only, 112

Detailed analysis, 421Detailed planning, 126Detailed report, 574

Cost element detail, 575Source document, 575Variance, 574

Development process, 391Direct activity allocation, 91Direct update, 156Discontinued material, 103Display cost estimate, 242Division, 139Do not cost checkbox, 116Driver-based planning, 31Duty cost, 530, 589

E

Effective price, 216Electricity, 412Employee, 170Energy, 48, 253Enhancement, 543

COPCP001, 543COPCP003, 544COPCP004, 545COPCP005, 545Local object, 543SAPLXCKA, 545

Environment, 535Available, 535Define, 535Hierarchy, 535Standard system, 535

Error message, 287European implementation, 263Example program code, 544Existing product, 387Expense, 65

Analyzable, 65Controllable, 65Cost element, 65General ledger account, 60

Primary, 65Type, 80

Expense type, 206Externally procured, 544External number, 206External procurement, 37

F

Factory calendar ID, 178FERT, 162Field selection, 141Field status group, 64Financial Accounting (FI), 140Finished goods, 162, 407, 409, 410Fiscal year, 92, 254, 409Fixed lot size, 105Formula

Indicator, 183Key, 182, 185Other, 183Processing, 182Setup, 180Teardown, 183

Freight charge, 241, 249Freight cost, 530, 589Function, 535Functional area, 206Future planned price, 129Future price, 140, 141, 151

G

General ledger account, 132Goods issue, 408

Automatic, 417Goods receipt, 126, 135, 616

Automatic, 417Gross price, 216Gross profit, 411Group counter, 122, 188Group valuation, 151Grouping code, 407

399 Book_CS4.indb 635 12/1/11 5:46 PM

636

Index

H

HALB, 162

I

Include, 542Info record update, 221Information system, 209

Cost center, 583Cost Object Controlling, 561Detailed report, 557, 561, 574Hierarchy structure, 562Line item report, 561, 577Management reporting, 577Material document, 562Material group, 561Object comparison, 557Order, 578Period-end processing, 562Product Cost Planning, 557Product group, 563Purchasing, 43Summarization analysis, 562Summarization hierarchy, 567

In-house production, 37Initial cost planning, 387Initial cost split, 249Input quantity variance, 420Insurance contribution, 241, 249Integrated planning, 31, 47, 54, 499Internal

Activity allocation, 67Order, 60, 431Profit, 149, 151, 249Settlement, 67

Inventory, 65, 405Beginning, 150Cumulative, 150Goods movement, 68Movement, 132, 407Valuation, 246, 261, 355, 536

Invoice receipt, 135Item category, 390

J

Joint production, 109Process, 125

L

Labor, 250Labor allocation, 412Last price change, 142Legal profit, 249Legal valuation, 151Lengths of break, 178Line item report, 577

Detailed report, 577Posting date range, 578Source document, 578

Lock checkbox, 83Lock indicator, 95Logistics master data, 223Long-term planning, 31, 35, 47, 52, 53,

91Activity quantity, 45BOM, 38Exception message, 40Indicator, 37Parameter, 37Planning horizon, 40Planning scenario, 39Purchasing data, 42Run, 38Sales order, 38Scenario, 43Transfer control, 46

Lot size data, 104Lot size range, 188Lot size variance, 124

M

Main cost component structure, 262, 271

Make-to-order, 500Manual cost, 342

399 Book_CS4.indb 636 12/1/11 5:46 PM

637

Index

Manually insert operation, 420Manufacturing costs, 31Manufacturing order, 67, 397

No revenue, 431Margin analysis, 411

Gross profit, 411Net profit, 411Operating expense, 411Operating profit, 411Pretax profit, 411Profit margin, 411SG&A, 411

Marketing decision, 240Marketing manager, 65Market price, 154Marking allowance, 374Mark up, 249Masking, 261Master data, 59, 425, 499

Activity type, 86Controlling, 59, 100, 239Cost center, 74Cost element, 59, 66Error, 364Logistics, 59, 239Material, 59, 239Statistical key figure, 99, 620

Material availability, 101, 107Material ledger, 135, 137, 145, 151,

249, 518Activate, 520Activated indicator, 146Actual BOM, 519Actual costing, 144, 526Actual costing run, 528Actual price, 519Additional local currency, 522Assign currency type, 521Assign plant, 529Assign type, 526Company code currency, 529Company code currency type, 522Consolidated inventory report, 144Cumulative price difference, 528Currency, 144Currency and valuation profile, 524Document, 145, 148, 519, 527

Exchange rate difference, 144Finished product, 527Foreign currency, 519Global company, 144Goods movement, 519Historical exchange rate, 519Inventory reporting, 527Legal valuation, 522Legal valuation approach, 527Material consumption, 145, 519Multilevel price determination, 529Multiple currencies, 519Multiple valuations, 144One currency type, 527Period-end processing, 527Periodic unit price, 144, 519, 529Price determination, 147Price difference account, 528Procurement process, 527Purchased material, 527Purchase price difference, 529Single-level price determination, 529Subassembly, 527Transaction-based price

determination, 519Transfer pricing, 144Type, 525Valuation, 519Valuation approach, 144, 526Variance, 519

Material master, 101, 143, 161, 287, 391Accounting 1, 138Accounting 2, 152Costing 1, 109, 115, 536Costing 2, 128Lot size data, 104MRP 1, 102, 514MRP 2, 106, 514MRP 4, 110Views, 101

Material number, 119Material origin checkbox, 119Material price analysis

Button, 148Category, 148, 527Price determination structure, 148

399 Book_CS4.indb 637 12/1/11 5:46 PM

638

Index

Screen, 148Transaction document, 148, 527

Materials Management (MM), 261Material type, 407

FERT, 162HALB, 162ROH, 162

MixedCosting checkbox, 542Price, 536Price variance, 537

Mixed-cost estimate, 536, 540Create, 537Inventory valuation, 536Production line, 536Vendor, 536

Mixed procurement cost, 536Mixing ratio, 536, 539MM period, 136Moving average price, 134, 135, 137,

140Material requirement planning (MRP),

52, 91, 101, 160Activity quantity, 46Controller, 41List, 40Long-term, 41, 45Operative, 36, 44Processing time, 39

N

NC machine, 122Net ID indicator, 106Net profit, 411New product, 131, 387No update, 156Numbering logic, 67Number series, 67

O

Obsolete material, 103Operating concern, 32

Operating profit, 411Operating rate, 93Operation, 170

Cost element, 194External, 194Final, 418First, 195Material component, 195Milestone, 176Net price, 195Overview, 416Purchasing info record, 194Scrap, 192, 611Sequence, 420Setup time, 180Subcontract, 193

Operations manager, 242, 250Optimum lot-sizing procedure, 106Order

Category, 213, 582Selection, 213, 581Type, 213, 233, 397, 400, 582

Order information system, 578Layout, 580MRP controller, 579Operation, 579Order header, 579Production supervisor, 579

Ordering costs, 106Order quantity, 419Order status, 471

Delivered, 471Technically complete, 471

Organizational unit, 261, 263Origin group, 117, 239, 251, 293, 530

Assign, 532Create, 251, 532Define, 252Key, 252

Outline agreement, 290Overhead, 117, 168

Accuracy, 118Activity type, 225Actual cost, 238Allocation, 534Calculation base, 117, 260Category, 67

399 Book_CS4.indb 638 12/1/11 5:46 PM

639

Index

Collective calculation, 426Configuration, 425Controlling area currency, 428Cost, 225, 412, 534Cost center, 67Cost component view, 260Costing type, 259Date-dependent, 228Detail lists indicator, 427Dialog display indicator, 427Fiscal year, 427Group, 117, 536Individual calculation, 426Key, 203, 230, 401, 536Maintenance, 118Material, 260Messages, 427Object currency, 428Parameters, 427Payroll, 65Period, 427Plan cost, 238Quantity-based, 235Rate, 67, 85, 226, 536Receiver, 428Secondary cost element, 428Selection screen, 426, 427Semifinished product, 260Senders, 428System implementation, 427

P

Parallel processing, 370Parameter, 181Partial costing, 322Partner

Cost component split, 284View, 285

Partner version, 284Direct partner, 284Partner, 284

Pass on lot size indicator, 113PA transfer structure, 498

Accounting indicator, 490, 493Assignment line, 488

Cost element, 490Cost element group, 490Fixed amount, 491Overview screen, 488Production variances, 488, 490Value field, 487Variable amount, 491Variance category, 490Variance reporting, 488

Payroll, 65, 412Percentage overhead rates, 229Period, 145

MM, 136Tabs, 145

Period-end processing, 67, 499Overhead, 425Settlement, 492Variance calculation, 453Work in process (WIP), 429

Periodic unit price, 137, 147, 150Physical inventory, 63Plan

Activity, 54Activity price, 52, 54Activity quantity, 52Activity rate, 31, 64CO-PA, 31Cost, 405Cost center, 31, 49Data, 31Primary cost, 48Production, 31, 33, 45Reconciliation, 48, 53, 54, 91, 92, 95Sales, 31, 33, 34

PlannedOrder, 36, 44Price, 130Price 1, 131Price 2, 131Price 3, 131

Planner profile, 94Planning

Data, 49Layout, 49Level, 32Package, 32Scenario, 37, 38, 42, 43

399 Book_CS4.indb 639 12/1/11 5:46 PM

640

Index

Strategy, 500Table, 36Variance, 454, 613Version, 254

Plant, 70, 139, 151, 261, 262, 264Plant-specific material status, 103

Valid from date, 104Policies and procedures, 132Pooled capacity, 178Possible entries

Activity type category, 88Activity type price indicator, 90Additive cost, 342Base, 555BOM status, 318BOM usage, 162, 313Calculation base, 260, 282Comparison value, 554Condition types, 293Confirmation, 176Cost center, 483Cost component view, 259Costing, 502Costing sheet, 304External processing, 176, 302Hierarchy level, 570Material master price, 555Material valuation strategy, 288Order category, 582Order type, 205, 582Pass on lot size, 335Preliminary cost estimate status, 208Process category, 538Product group type, 564Purchasing info record, 194Purchasing info record strategy, 289Quotation in purchasing, 301Reference cost estimate, 328Relevancy to costing, 306Requirements type, 500Results analysis methods, 445Rounding for component quants, 319Scheduling type, 415Selection method, 110Special procurement type, 515Strategy sequence, 159Subcontracting strategy, 300

Task list type, 321Transfer control, 323, 328Valuation view, 299

Posting origin, 60Predistribution of fixed costs, 93Preliminary cost estimate, 379, 509

Controlling level, 382Cost estimate button, 380Costing data tab, 385Costing variant, 383Costs button, 380Create, 380Create collectively, 208Create individually, 208Lower-level material, 384Mass processing, 385Message, 386Most recent, 380Planning variance, 379Product cost collector, 379Production process, 379, 382Production variance, 379Production version, 379, 382Quantity structure, 382Strategy sequence, 383Transfer control, 382Valuate WIP and scrap, 385

Preliminary costing, 397, 405Preliminary valuation price, 147Pretax profit, 411Previous

Period, 142Planned price, 130Price, 142Year, 142

PriceAccuracy, 136, 194, 603, 613Activity, 241, 254, 355Actual, 137, 150, 355Analyzed, 155Calculate activity, 243, 254Calculation, 254Change document, 363Change material button, 156Commercial, 152, 261Compare market, 155Comparison, 156

399 Book_CS4.indb 640 12/1/11 5:46 PM

641

Index

Comparison button, 155Condition, 216Control, 134, 135, 150Control field, 140Future, 140, 141, 151Last change, 142Lowest, 155Lowest purchase order, 155Market, 154, 156Market valuation, 157Moving average, 134, 135, 140New, 156Periodic unit, 147, 149, 150Planned, 130, 141, 356Preliminary valuation, 147, 150Previous, 142Purchase, 241, 249, 355, 363Purchasing info record, 364Rapidly changing, 138Release, 142Stability, 135Standard, 135, 137, 140, 141, 142,

150, 154, 261, 262Tax, 152, 158, 261Transfer, 149, 151, 249Unit, 125, 136, 194, 360, 613Update button, 157Valuation, 151Vendor, 340

Price determination, 137, 147Possible entries, 147Single-/multilevel, 147Transaction-based, 147

Price difference, 70, 130Account, 135Markup, 294

Pricing, 260Primary

Cost element, 65, 405, 410Cost planning, 49Credit, 410Expense, 65

Process category, 538Processing key, 39Processing type, 494Process order

Detailed analysis, 421

Information system, 398, 419Procurement

Alternative, 536, 538, 540Changing methods, 59External, 249Process, 527

Procurement type, 107, 108External procurement, 107In-house production, 107Possible entries, 107Special, 108

ProductDevelopment, 387Modified, 391New, 391

Product cost collector, 60, 67, 196, 397, 410, 454, 574Activity price, 201Advantages, 197Automatic account assignment, 209BOM, 210Business area, 199Business process, 207Characteristics, 205, 209Company code, 204Controlling level, 205, 209Cost, 197, 209Cost element detail, 213Cost element report, 213Costing lot size, 211Costing sheet, 201, 202Costing variant, 199Data tab, 198Description, 204Detailed report, 209Efficiency, 197External number, 206Functional area, 206Goods receipt, 197Header, 203Information system, 197Inventory, 197Last change, 206List, 212Manufacturing order, 207Material, 205, 210Multiple periods, 197

399 Book_CS4.indb 641 12/1/11 5:46 PM

642

Index

Order category 05, 213Order-related manufacturing, 196Order selection, 212Order type, 202, 205, 213Overhead key, 203Periodic actual cost, 197Planning plant, 210Preliminary cost estimate, 199, 200,

208Procurement alternative, 212Production environment, 197Production line, 211Production order, 197Production plant, 210Production process, 205, 209Production version, 205, 207, 210,

211Profit center, 199Range of material, 205Reconciliation, 197Repetitive manufacturing, 196Results analysis key, 203Routing, 210Selection field, 212Settlement profile, 205Settlement rule, 209Source document, 213Standard report, 196System status, 206Time frame, 213Valuation variant, 200Value of scrap, 203Variance, 197Variance analysis, 213Variance key, 203Vendor quotation, 200Work in process, 197

Product Cost Controlling, 160, 162, 171, 186, 271, 499

Product Cost Planning, 59, 140, 551Product development phase, 131Product drilldown report, 563

Configuration, 563Cumulative, 567Data collection, 565Material group, 564Periodic, 567

Product hierarchy, 564Run, 566Variance, 566

Product group, 33Production, 132

BOM, 122Campaign, 182Line, 536Order, 36Overhead, 544Plan, 31Quantity, 124Startup, 147Step, 122Variance, 454Version, 123, 126, 205, 211, 536

Production order, 61, 407, 410Automatic goods receipt, 417Backflushing, 417Basic dates, 415Components overview, 416Confirmation, 403, 418Control tab, 399Costing sheet, 401Costing variant, 399Create, 413Credit, 404Default value, 400Detailed analysis, 421Determine plan cost, 401Goods issue, 403, 407Information system, 398, 419, 578List, 399Operation overview, 416Order type, 400Overhead, 403Overhead key, 401Plan cost, 399Preliminary cost estimate, 404Release, 416Repair, 413Results analysis key, 401Return of components, 410Rework, 413Save, 402Scheduling type, 415Scrap, 401

399 Book_CS4.indb 642 12/1/11 5:46 PM

643

Index

Scrap portion, 415Secondary credit, 410Settlement, 410Type, 419Valuation variant, 400Variance, 411Variance key, 401

Production output account, 410Production process, 225Production resource, 544

Cost, 544Cost components, 544Cost estimate, 544Enhancement, 544Example program code, 544Flat rate, 544Operating resource, 544Plant maintenance, 544Tool, 544

Production routing, 64Production variance, 615, 621Production version, 123, 126, 317

Apportionment structure, 128Basic data, 126Bill of material, 127Detail, 126Overview, 126Planning data, 126Planning level, 126

Profitability Analysis (CO-PA), 31, 65, 81, 240, 261, 263, 410, 563, 618

Profit and loss account, 429, 623Profit center, 81, 249

Dummy, 81, 199Manager, 65Product cost collector, 199Responsible manager, 199

Profit Center Accounting (PCA), 65, 81, 120, 199Activate, 81, 199Parallel postings, 65

Profit margin, 411Project System (PS), 60Purchased materials, 531

Delivery cost, 530, 589Origin group, 532Valuation class, 531

Purchase order, 155, 220, 290Price, 44Quantity, 44Value, 42, 44

Purchase priceEstimated, 131

Purchase price variance (PPV), 135Purchase quantity, 124Purchase requisition, 37Purchasing, 131, 132

Department, 44Future requirement, 44Information system, 43, 44Planning scenario, 42RFQ, 42

Purchasing document, 219Long standing, 219Scheduling agreement, 219Scope of list, 219Type LP, 219

Purchasing info record, 35, 131, 154, 161, 194, 214, 219, 287, 291, 299, 340, 355Category, 216, 303Change, 219Conditions, 195Condition type, 531, 533Consignment, 217Cost estimate, 219Costing lot size, 218Create automatically, 219Current, 42Current price, 340Discount, 216Display, 533Effective price, 216Freight price, 533Gross price, 216, 218, 290, 533Last purchase order, 195, 291Multiple vendor quotations, 216Net price, 290Pipeline, 217Plant non-specific, 219Plant-specific, 219Price, 531Price condition, 217Purchase price, 214

399 Book_CS4.indb 643 12/1/11 5:46 PM

644

Index

Purchase price variance, 219Purchasing condition, 216, 290Purchasing organization, 216Purchasing organization data 1, 214Scales, 218Scheduling agreement, 219Selection criteria, 214Source list, 301Standard, 217Subcontract, 217, 515Supplement, 216Surcharge, 216Updated, 42Validity date, 217Validity period, 219Valuation variant, 220Vendor, 214

Purchasing information system, 42, 47, 54

Q

Quality inspection operation, 420Quantity

Capacity, 52Plan activity, 52

Quantity structure, 120, 252, 266, 462Data, 115Existing, 391Target cost version, 462

Quantity structure control, 311BOM, 319BOM application, 312Routing, 319SAP standard, 311

Quotation price, 531

R

Rate-based planning, 126Raw material, 162, 241, 407Real posting, 70Recursive checkbox, 166Recursiveness, 166

Reference operation set, 321Reference variant, 327

Additive cost, 330Material components, 330Miscellaneous, 330Overview, 328Quantity structure, 327Revaluation, 329Strategy sequence, 328Transfer control, 328

Release, 159, 416Release note, 590Repair order, 413Repetitive manufacturing, 126, 196Report

Analyze costing runs, 552Compare cost estimates, 558Configuration, 568Cost center, 583Data collection, 571Detailed, 557Line item, 577List cost estimates, 556Order information system, 579Order selection, 581Product drilldown, 614Production order, 578Source document, 578, 583Summarized, 562

Reporting requirement, 257Request for quotation (RFQ), 42Requirements

Activated planned independent, 44Activity, 45, 46Dependent, 37Future, 44Future purchasing, 41, 44Individual, 335Planned independent, 35, 37, 55Production capacity, 34Scheduled activity, 35, 47

Requirements class, 501Assembly processing, 504Automatic planning, 505Condition type, 504Configuration, 502Costing, 502

399 Book_CS4.indb 644 12/1/11 5:46 PM

645

Index

Costing ID, 502Costing method, 503Costing sheet, 503Costing variant, 503Functional area, 508Results analysis key, 508Sales order costing, 505Settlement profile, 507Valuation, 506

Requirements type, 500Possible entries, 500

Reset, 157Results analysis

Basic settings, 431Configuration, 443COS, 443Expert mode, 444Key, 430, 446Key default value, 431Method, 445Revenue, 443Simplified mode, 444Status control, 445Valuation method, 443

Results analysis versionAdvanced functionality, 431Cost elements button, 433Define, 431Documentation, 434Expert settings, 432Extended control button, 433Relevant to settlement, 432Settlement rule, 432Technical cost element, 432Transfer to financial accounting, 432

Revenue, 63, 431Revenue type, 80, 206Rework order, 413ROH, 162Rough-cut planning, 126Routing, 31, 126, 186, 420

Base quantity, 191Company code, 188Component allocation, 195Costing relevancy, 192External processing, 193External vendor, 193

General data, 192Group, 188Header, 186, 187Material assignment, 189Material component, 195Nonvalue added, 193Operation details, 186, 190Operation overview, 190Operation scrap, 192Plant, 188Price unit, 194Purchase order, 193Selection, 320Selection ID, 320Selection screen, 187Standard value, 192Subcontract, 193Type, 321Unit of measure, 191

S

SalesManager, 31Plan, 31Quantity, 31

Sales and Distribution (SD), 260Sales and operations planning (SOP), 31,

52, 91Sales deduction, 63, 65Sales manager, 65Sales order, 234, 431

Cost estimate, 509Costing indicator, 509Line item, 431, 500Nonvaluated inventory, 512Procurement tab, 500Profit margin, 509Stock, 510Valuated inventory, 509Variance analysis, 514

Sales order controllingConfiguration, 500Valuated stock, 590

Sales order costing, 125, 443, 499Period-end processing, 508

399 Book_CS4.indb 645 12/1/11 5:46 PM

646

Index

Sales order item, 260Sales organization, 139Sales revenue, 261SBO Explorer, 265Scales, 218Scheduled activity, 54, 96Scheduled activity quantity, 46, 53Scheduling

Backward, 415Basic dates, 415Detailed, 415Forward, 415Manufacturing orders, 179Rough-cut, 415Type, 415

Scheduling agreement, 219List, 219Purchasing document, 219

ScrapAssembly, 106Component, 113Input, 604Output, 602, 611Production statistics, 106

Selection ID, 321Selection list, 213Selection method, 110

By explosion date, 111By order quantity, 111By production version, 111

Settlement, 454, 473, 618Actual cost, 475Allocation structure, 474, 478Amount, 477Background processing, 495Basic list, 495Check transaction data, 496Configuration, 473, 492Control parameters, 473Cost element, 479Cost of sales, 475Current period, 471Detail list indicator, 495Distribution rules, 474, 478Fiscal year, 494Largest amount, 497Message analysis, 496

Order type, 473Parameters, 493, 497PA transfer structure, 474Period-end closing, 492, 497Posting period, 494Processing options, 495Processing type, 494Product cost collector, 493Production order, 410Profile, 473Reconcile, 497Selection screen, 497Test run, 495Transaction data, 496Type, 471Value field, 492

Settlement profile, 497Can be settled, 476Default value, 476Deletion flag, 476Document type, 478Equivalence number, 477Indicator, 476Not for settlement, 476Order balance, 476Other parameters, 478PA transfer structure, 487Percentage costs, 477Profitability Analysis, 477Residence time, 478Settlement rule, 476Source structure, 485To be settled in full, 476Valid receivers, 478

Settlement rule, 128, 209Account assignment category, 482Distribution rule, 477Settlement receiver, 483

Setup, 173Setup time, 124Shop floor control, 578Simulative planned order, 41Simultaneous costing, 421, 423Source, 156Source document, 213Source list, 221

Allowed source of supply, 222

399 Book_CS4.indb 646 12/1/11 5:46 PM

647

Index

Blocked, 223Cost estimate, 223Fixed, 223Purchasing info record, 223Purchasing view, 222

Source structureAccounting indicator, 487Assignment, 486Cost element, 487Distribution rule, 485Earned profit, 487Good will, 487Incurred cost, 487Joint product, 485Overview screen, 485Sales volume, 487Settlement procedure, 485Simultaneous production, 485Source, 487Warranty, 487

Special procurement type, 108, 343Costing, 123Maintain, 124Possible entries, 515Transfer control, 544

Split valuation, 134Standard activity time, 186Standard cost estimate, 31, 59, 137,

169, 247, 355Calculation, 357Cost based on field, 360Costed multilevel BOM, 359Costing data tab, 270, 356Costing lot size, 357Costing variant, 356Costing version, 357Create, 129, 356, 379Current, 128Default dates, 357Finish date, 358Future, 129Mark, 129, 356, 361Material, 356Overwrite, 362Plant, 356PPC1, 356Quantity structure date, 358

Release, 130, 355, 356, 362Release button, 362Save, 129Start date, 358Transfer control, 357Update frequency, 59Valuation date, 358Variance calculation, 358

Standard hierarchy, 74, 584Alternate hierarchy, 76Assigned, 76Company structure, 76Maintenance, 75Node, 75Swap, 76

Standard price, 135, 137, 140, 141, 405Current, 363Existing, 364Future, 363Proposed, 362Update, 357

Standard value, 181Statistical key figure, 99

Actual, 99Category, 99Employee, 100Fixed value, 99Long-distance call, 100Name, 99Plan, 99Total value, 99Tracing factor, 99Unit of measure, 99

Statistical posting, 69, 83Status selection profile, 570Stock account, 137Stock transfer, 343Strategy sequence, 159Subcontract, 193Subcontracting, 514

Component, 516Component quantity, 518Consumption posting, 518External processing, 518Goods receipt, 518Item category, 516Monitor stock, 516

399 Book_CS4.indb 647 12/1/11 5:46 PM

648

Index

Purchase order, 515Purchasing info record, 515Special procurement type, 515Stock, 517

Summarization hierarchyAlternate hierarchy, 574Configuration, 567, 568Data collection, 568, 571, 574Data scope, 569Exception rules, 574Hierarchy level, 567, 568, 569Hierarchy node, 571Performance, 573Status selection profile, 570Total variance, 568

Summarized reporting, 552

T

Table T030, 406, 409Target cost, 453

Version 0, 453, 460, 620Version 1, 454, 461Version 2, 454, 462

Target cost analysis, 68Target cost version, 458, 460Task list, 188

Description, 321Group, 122Group counter, 188Lot size range, 188Status, 189, 321Type, 122, 321Usage, 188

Tax, 411Teardown, 183

Time, 183Template, 84, 534, 589

Active, 536Activity and business process

allocation, 84Assign, 536Case scenario, 84Complexity, 534Cost center/activity type, 535Costing sheet, 536

Environment, 535Flexible alternative, 534Formula, 84, 535Formula planning, 84Function, 84, 535Material master, 536Object, 535Overhead key, 536Plan activation, 536Plan quantity, 535Receiver object, 84Sender object, 84Table field, 535Type, 535Valuation variant, 536Volume, 84, 535

Threshold amount, 554Time series icon, 44Total

Labor, 250Stock, 139Value, 140Variance, 453, 621

Tracing factor, 99Transactional data

Actual, 63, 88Plan, 63, 88

Transfer control, 46, 322, 544Collective requirements, 325Costing type, 324Costing version, 324Current period, 324Fiscal year, 324Individual requirements, 325PC01, 326Period, 324SAP standard, 322Single-plant, 323Strategy sequence, 323Valuation variant, 324

Transfer costing data, 261Transfer pricing, 144, 151Transfer structure, 252, 253, 255, 263Turnaround time, 131

399 Book_CS4.indb 648 12/1/11 5:46 PM

649

Index

U

Under-absorption/over-absorption, 621Unit

Output, 96Unit cost estimate

Category, 389Copy existing structure, 392Cost element, 391Item, 388Item total price, 391Item total value, 391Production phase, 393Quantity, 390Resource, 390

Unit costing, 119, 337Unit of measure

Alternative, 102Base, 102, 415Conversion factor, 415

Update inventory valuation, 130User exit, 542

ABAP program, 543Bulk material, 545Component, 543Configure, 543Cost estimate, 542Costing production resource, 542Costing report, 543, 545Cross-company code costing, 542Function module, 544Include, 542Material valuation, 545Production resource, 544Tool, 544Valuation price, 545

V

Valid from, 140Valuated goods receipt, 471Valuation, 55, 145, 147

Approach, 149, 151Area, 72Category, 134

Current, 138Data, 132, 142, 147Group, 150, 151Header record, 134Inventory, 153, 246, 249, 261Inventory report, 158Legal, 149, 151Method, 443Multiple, 249Price, 151, 544Strategy, 135Type, 134Update inventory, 130Variant, 118, 241

Valuation class, 132, 407, 531Project stock, 133Sales order stock, 133

Valuation strategy, 544Standard, 545U, 543, 545

Valuation variant, 220, 241, 274, 285, 397, 531, 536, 545, 622Activity price, 295, 296Activity type, 295Actual price for period, 296Additive cost, 287, 294Average plan price, 296Component materials, 287Costing sheet, 200, 304Delivery cost, 291Effective price, 290External processing, 302Finished material overhead, 304Freight, 292Gross price, 290Insurance, 292Material valuation, 201, 287Miscellaneous, 307Moving average price, 201Net price, 290Origin group, 292Overhead, 304Overview, 285Planned, 201Plant, 287Price factors, 305Purchase order, 289

399 Book_CS4.indb 649 12/1/11 5:46 PM

650

Index

Purchasing, 288Purchasing info record, 288Raw material overhead, 305SAP standard, 285Strategy sequence, 287, 295, 531Subcontracting, 299, 302Subcontracting indicator, 303Subcontract material overhead, 305Sub-strategy sequence, 531

Valuation variant for scrap, 461Value field, 454, 473, 492Variable cost, 93Variance, 355, 416, 471

Analysis, 31, 49, 213, 355, 421Calculation, 59, 410, 463, 466Category, 453, 457, 463, 471, 472,

473, 623Column, 469Configuration, 455Continual improvement, 463Cost center, 52Cost elements button, 468Cumulative, 471Define key, 455Detail list indicator, 467Formula for calculating, 468Input, 463Input price, 454, 463Input quantity, 420, 464Large, 468Lot size, 357, 454, 465Message, 468Mixed-price, 464Order status, 466Original transaction, 471Output, 464Output price, 465Period-end, 466Planning, 454, 462, 613Production, 454, 461, 487, 615, 621Quantity structure, 462Relevant to settlement, 453Remaining, 457, 465Remaining input, 464Resource-usage, 464Scrap, 457, 466, 471Scrap checkbox, 458

Sequence, 472Sort on columns, 467Summarized reporting, 467Target costs button, 469Test run indicator, 467Total, 410, 453, 461Unfavorable, 468Variant, 457

Variance key, 119Default for plants, 457Define, 455Scrap indicator, 456Write line item, 456

Variant products, 315Vendor, 214, 536

External, 194Quotation, 35, 44, 131, 161, 531

Version, 42, 46, 49, 51, 254Fiscal year, 299Info structure, 42Legal valuation, 299Planning, 254

Volume, 84, 535

W

Wages, 48WIP at target, 437With qty structure checkbox, 118Work breakdown structure (WBS), 60,

431Work center, 45, 170, 412

Activity type, 185Activity unit, 185Actual activity quantities, 173Alternate activity description, 185Backflush checkbox, 172Basic data, 171Capacity, 177, 180Capacity category, 177Capacity planning, 173Category, 171Change, 171Company code, 184Confirmation, 172Control key, 174, 193

399 Book_CS4.indb 650 12/1/11 5:46 PM

651

Index

Cost center, 184Costing, 173, 183, 185Default value, 174, 190Display, 171Employee, 170Factory calendar, 178Formula key, 181Formula parameter, 181Iterative process, 173Key word, 173Labor, 173Labor capacity, 177Length of break, 178Load, 55Low-value part, 172Machine, 173Machine capacity, 177Material component, 172Other formula, 183Parameter definition, 181Parameter details, 181Parameter origin, 181Parameter user-defined, 181Performance efficiency, 173Plant, 184Processing formula, 182Production line, 170Production personnel, 183Reference indicator, 176, 185Rule for maintenance, 173Scheduling, 179Setup, 173Setup formula, 180Shift, 178Standard value, 173, 177, 181Standard value key, 172Teardown formula, 183Unit of measure, 177Validity period, 184

Workflow, 132Work in process (WIP), 471, 623

Actual, 435Assign line ID, 441, 442Assign valuation variant, 438Calculation, 447, 452Cancel, 429, 452, 471Cannot be capitalized, 440

Capitalization, 431Capitalize cost, 431Change, 450Configuration, 429Confirmed yield, 451Control tab, 430Cost component, 442Cost element, 439Cost estimate, 436Costing run, 436Costs, 429Data tab, 431Define assignment, 439Define line ID, 438Define posting rule, 442Define update, 440Delivered to inventory, 429Financial accounts, 442Goods receipt quantity, 451Incomplete assembly, 429Inventory, 429Masked cost center, 439Masked cost element, 439Operation, 451Option to capitalize, 440Order status, 435, 452Period-end processing, 429Preliminary cost estimate, 436, 447Product cost by order, 452Production cost, 429RA category, 442Repetitive manufacturing, 437Requirement to capitalize, 439Reserves, 438Results analysis key, 430Results analysis version, 431Routing, 436Routing structure, 436Settlement, 442Source cost element, 439Standard cost estimate, 436Target, 435Technically complete, 452Unrealized cost, 438Valuation method, 434Valuation variant, 436Variance, 437

399 Book_CS4.indb 651 12/1/11 5:46 PM

652

Index

Variance analysis, 448WIP explanation button, 450

Y

YieldDefault, 419Previously confirmed, 419

Propose, 419Quantity, 418To be confirmed, 419

Z

Zero balance, 410

399 Book_CS4.indb 652 12/1/11 5:46 PM