Integration Organization structure Company ↓ In SD: Combination of sales Organization, distribution channel & division they call at as One sales area. Movement types: posting keys in FI 101 → Material receipt against purchase order/production 102 → Reversal of 101 201 → Issue to cost centre (stores of all departments) 202 → Reversal of 201 261 → Issue to orders (Raw material shows) 262 → Reversal of 261 521 → Material receipt with out production order 522 → Reversal of 521 561 → Opening stock talking 562 → Reversal of 561 601 → Delivery 602 → Reversal of 601 Process key (Transaction keys) These are system defined keys 1). BSX → Inventory postings 2). WRX → GR/IR clearing (G.R – Goods receipts) (I.R – Invoice receipts) 3). PRD → price difference/production order differences 4). GBB → Offsetting entry for inventory posting a). VBR – consumption b). VNG – scrapping 1
c). BSA – opening stocks talking d). SUF – production receipt against production order e). ZOF – production receipt with out production order f). VAY – Delivery where sales account is not a revenue account g). VAY – delivery where sales account is not a revenue account h). AUA – production order differences GBBVBR – Raw material consumption A/C Dr BSX – to inventor raw material local A/C Valuation class: Valuation class determines the G/L account to be posted automatically a). Raw material: 4 valuation classes - Local - Imported - Inter Unit - Inter company b). Stores: 2 valuation classes - Local - Imported b). Finished goods: 1 valuation class – Own goods
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Advantage is we need create valuation group each company code wise. Material types
Price control
1. Raw material – ROH 2. Stores & Spares – FRSA 3. Packing material – VERP 4. Finished goods – FERT
Purchase Price
V –Moving average price - Available V – Moving average price - Available V- Moving average price - Available S – Standard price Raw material + overheads
5. Semi finished goods: Purchased – HALB - V – moving average price – Available Produces – HALB - S – Standard price – Raw material + overheads 6. Traded goods – HAWA 7. Service – DIEN
V – Moving average price
Material types – similar to account in G/L In M.M we create material mater - Material master is to be created under material type - Material master to be created at plant level - When no. of plants area using same material it will be extended to other plants - Material periods we can open 2 periods at a time - In G/L it is called as tabs, where as in MM it is called No. of views like: - Basic data - Purchase data - Sales data - MRP data - MRP data - Ware house - Quality - Accounting - Costing Why system supports inventory account, not purchase account: Purchase order Price – 10 Qty – 5 Taxes → 8% Cenvat 4% Vat Other expenses → 2%
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In normal accounting system RM 1 If other expenses not taken Opening stock 0 Add: Purchases 63 63 Less: closing stock 10 Consumption
X
If invoice is not taken (Only Delivery challan copy is taken) Opening stock Purchases
0 0
Closing stock
0 20
Consumption
X
In SAP Opening stock Purchases 5 Consumption 3 Closing stock 2 -
0 63 37 26
(Here the price of the good is taken from purchases order). MM flow (Material management flow) 1. Material requisition: Production dept to stores – called internals If the material not available, stores department raised. 1. Purchases requisition – stores to purchases dept 2. Purchases dept call for enquiry, quotations & price comparisons 3. Raising the purchases order by purchase dept Purchase order contains → Vendor, Material, Plant, quality, rate, delivery terms and payment terms 4. Release procedure – work flow Up to 10000 → Manager Purchases 5. Goods receipt → ( G.R ) G.R should be against purchases Inventory raw material local Dr – Balance sheet current asset – BSX To GR/IR clearing raw material local – Balance sheet current liabilities – WRX 6. Invoice verification → Verification against GR (or)/ Purchase orders GR/IR clearing Raw Material Dr – Balance current liabilities –WRX To party – Sundry creditors – Balance sheet current liabilities – Feam po
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7. Consumption: Raw material consumption local Dr – P&L debit – GBBVBR To inventory raw material local – B/S current assets – BSX 8. Wages Payment: Wages A/C Dr To Bank A/C 9. Production receipt: Inventory finished goods (At product cost) Dr – Balance sheet current assets – BSX Increase/decreased stock finished goods – P/L A/C credit – GBBAUF (Production order) GBBZOF (NO Production order) 10. Delivery: Increase/decrease in stock finished goods – P&L credit: GBBVAY –sales (At product) GBBVAX – sales not revenue account To inventory finished goods – Balance sheet current asset – BSX 11. Sales billing: Customer A/C Dr – Sundry debtors – Balance sheet current asset – from sale order To sales- P&L A/C credit – ERL
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Integration is based on 3 rules: 1. In material master we specially valuation class 2. For valuation class we assign G/L accounts based on the nature of transaction. 3. Stores person when he received (or) issues material he will enter Movement type, material number and quantity accounts will be Updated automatically based on account assignment to valuation class Which is specified in material master.
Example:
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Po1 Po1 Move type 101 Raw material 1 Material No → RM1 qty: 100 Qty: 20 Kgs Rate – 5 Save Vendor – 1234 Movement type 101 – Debit BSX – 200121 → inventory raw materials – Qty in GRX Credit WRX – 150000 → GR/IR clearing. 1st rule: In material master we specify valuation class: Here RM1 & RM2 (Material master) is specify the valuation Class 3000 RM local & 3001 RM imported respectively. (2) For valuation class we assign G/L accounts based on the nature of transaction. Here valuation class (3000 RM local & 3001 RM imported) Assign G/L accounts inv. Postings (BSX) (200121- Inventory raw material local, 20012Inv. Raw material imported), GR/IR clearing. WRX (150000 – GR/IR clearing), 150001 (GR/IR clearing raw material imported)
Batch mode: Batch:
Qty
Rate
Amount
1 2
100 200
10 40
1000 8000
1
300 10
10
9000 100 8900 9080
Receipt:
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1000 – BSX 1000 – WRX
a). Inv. Raw material local A/C Dr To GR/IR clearing raw material local Consumption: b). Raw material consumption local to raw material local Price difference:
100 – GBBVBR 100 – BSX
Dr
Inv. Verification GR/IR clearing raw material 1000 Inv. Raw material local 200 To party 1200
Moving average: Stock partly available Qty 100 200 300 Consumption 280
Rate 10 40
Amount 1000 8000
30 30
9000 8400
20 Price difference
600 40
20
640
a) receipt; Invent raw material local Dr 1000 To GR/IR Clearing raw material 1000 b) Consumption: Raw material consumption Local Dr 8400 To Inv. Raw material 8400 c) Inv Verification: GR/IR Clearing raw material local Price difference raw material Inv. Raw material To Party
-
BSX WRX
-
GBBVBR BSX
1000 WRX 160 Prd 40 (20*2) BSX 1200 (from P.O)
The difference between batch method and moving average method In batch method it checks with material no and batch number only Moving average Qty
Rate
Stock not available Amount
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100 10 1000 200 40 8000 -----------------300 30 9000 Consumption 300 30 9000 ----------------a) Receipt: Inv raw material load Dr 1000 To GR/IR clearing raw material b) Consumption: Raw material local Dr 9000 To Inv raw material 9000 c) Inv. Verification: GR/IR Clearing raw material 1000 Price difference raw material 2000 To Party
BSX 1000
-
WRX
GBBVBR WRX -
WRX PRD
SD to FI 1. Enquiry and quotation 2. Sale order: Material qty, plant, sale, organization, rate, delivery terms, payment 3. Delivery: With out post goods issue (With out PGI) – No transfer of ownership With post goods issue (with PGI) – Transfer of ownership FOB (Free on Boards); Example: Plant Hyd
Port
Customer
Chennai
Delivery without PGI
Delivery with PGI
Only material No FI document
Material document FI document
Inv/dec in stock finished goods – Dr → GBBVAY (Sales revenue element) To inventory finished goods – BSX 9
a). Billing should be with reference to delivery Billing: in SD module there is a pricing procedure Procedure: i) From region - Andhra Pradesh To region – Andhra Pradesh Customer – Taxable Material - Tax Billing Basic XXX Excise XXX VAT XXX Bill amount
XXX
ii). From Region – Andhra Pradesh To region – Andhra Pradesh Customer – Non taxable Material – Non taxable Here in this case the buyer is purchasing in local state and same is exported – under From H Billing is Basic XXX Bill amount
XXX
iii). From region – Andhra Pradesh To region – Andhra Pradesh Customer – Taxable Material – Taxable Billing is Basic XXX Excise XXX CST XXX Bill amount
XXX
iv). From region – Andhra Pradesh To region – Andhra Pradesh Customer – Non Taxable
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Material – Non Taxable Billing Basic XXX Bill amount
XXX
Condition type: KOFI Assignment of Accounts:
(5)
Account assignment group for Customer
01 – Domestic revenue 02 – Foreign revenues 03 – Affiliated company revenue (6) Account asset group for material 01- Trade goods 02- Service 03- Finished goods (7) Accounts Key: ERL – Sales revenue ERF – Freight revenue ERB – Rebate (Trade discount) ERS – Sales deduction (Commissions)
MM – Integration Step 1. Define plant Path: SPRO → Enterprise structure → definition → logistics → general → define,copy, delete, check plant
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Double click on define plant Select new entries button Give plant: AMLP Assign factory calendar: A2 (AML Hyderabad factory calendar) Save Give the name: AML Hyderabad factory plant Give the country: IN (India) Enter Select create request button Give the short description: MM customization for AML Enter Press enter to save in your request Define copy, delete, check, division Path: same path Select define, delete, check division Double click on define division Select new entries button Division A1 → Name: Cement division Save Save in your request Maintain storage location Path: SPRO → Enterprise structure → Definition → Material Management → Maintain storage location Give the plant: AMLP Enter Select new entries button Give the storage location: Hyd Give the description: Hyd storage location Save Save in your request Maintain purchasing organization Path: Same path Select new entries button Give the purchase organization: AMLR: Raw material of purchase order Save Save in your request Assign plant to company code Path: SPRO → Enterprise structure → assignment → logistics → general → assign plant company code Select find button Give the code: AML Enter
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Select: AML Select assign button Select: AMLP check box Enter Save Save in your request Assign business area to plant/valuation area and division: Path: Same path Select plant/valuation area – division button Select new entries button Plant: AMLP Division: A1 Give the business area: AMH Select save button Save in your request Assign purchasing organization to company code Path: SPRO → Enterprise structure → assignment → material management → assign purchasing organization company code Select find button Give the company code AMI Enter Select company code: AML Select assign button Select: AMLR check box Enter Save Save in your request Creation of material group Path: SPRO → Logistic general → material group → create material group Material group: CHEMICAL Enter Give the material group description: Chemical Save Creation of purchasing group Path: SPRO → material management → purchasing → create purchasing groups Select new entries button Purchase group: AML Description: Raw material purchase group Save Save in your request Maintain company code for material management
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Path: SPRO → Logistic → general → material master → basic settings → Maintain company code for material management Select position button Give the company code: AML Enter For the code: AML Give the year: 2007 Give the period: 7 Select ABP check box ABP → allow back period postings Save Ignore the warning message Press enter Press enter to save in your request Define attributes of material types Path: SPRO → Logistic general → material master → basic settings → material types → Define attributes of material types Select material types: ROH (Raw material) Double click on qty/value updating folder Select position button Give the valuation area: AMLP Enter For AMLP: select qty updating check box & value update check box Save Save in your request Select back arrow Select material type: FERT (Finished Products) Double click on qty/value updating folder Select position button Give the plant: AMLP Enter For AMLP: select qty updating check box & value updated check box Save Select tolerance group for purchase orders Path: SPRO → material management → purchasing → purchase order → set tolerance limits for price variance Select: tolerance key PE & tolerance key: SE For company code: 1000 Select copy as button Change company code: AML Press enter Once the company code: to AML for SE Enter & save Save in your request
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Set tolerance limit goods receipt Path: SPRO → material management → inventory management & physical inventory → goods receipt → set tolerance limit Select tolerance key: B1, B2, & VP for company code 1000 Select copy as button Change company code to AML for B1 Enter Change company code to AML for B2 Enter Change company code to AML for VP Enter & save Save in your request Plant parameters Path: SPRO → material management → inventory management & physical inventory → plant parameters Select plant: 1000 Select copy as button Give the plant: AMLP Enter & Save Save in your request Maintain default values for tax codes Path: SPRO → material management → Logistic invoice verification → incoming invoice → maintain default values for tax codes Select new entries button Company code: AML Select tax code: VO Save Set tolerance limit for invoice verification Path: SPRO → material management → Logistic invoice verification → invoice block → Set tolerance limit Select tolerance key BD Select tolerance key ST for company code: 1000 Select copy as button Change company code: AML Enter Once again change company code to AML for ST Enter Save Save in your request Define automatic status change Path: SPRO → material management → Logistic invoice verification → invoice verification in back ground → define automatic status
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Change Select new entries button Give the company code: AML Save Save in your request
Creation of GL master (FS00) 1. 2. 3. 4.
Inventory raw material local under current assets, loans advance in finished good under current assets, land & advances GR/IR clearing raw material local under current liabilities & provisions Increase/decrease finished goods under the group increase/decrease the stocks 5. raw material consumption local under material consumption group Use the transaction code: FS00 Give the G/L account No: 200121 Company code: AML Select with template button Give the G/L account No: 200120 (Inv. Raw material)
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Company code: AML Enter Change short text &long text to: Inventory raw material local Select create/bank/interest tab Field status group change to G006 (Material accounts) Select post automatically only check box Save (or) (Ctrl +S) 2) G/L account No: 200122 Company code: AML Select with template button Give the G/L account No: 200121 Enter Change short text & G/L long text to: Inventory finished goods Save 1) G/L account No: 100510 Company code: AML Select with template button Give the G/L account No. 100500 (Out standing) Company code: AML Enter Change short text & G/L long text to: GR/IR clearing raw material local Select control data tab Tax category: * (All tax types allowed) Select posting with out tax allowed check box
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Select create/bank/interest tab Field status group: G045 Save 2) G/L account No: 300200 Company code: AML Select with template button Give the G/L account No: 300100 (Exchange gain) Company code: AML Enter Change the account group to: increase in stocks Change short text & G/L long text to: increase/decrease in stocks finished goods Select create/bank/interest tab Field status group: G030 (change in stock accounts) Save G/L accounts No: 400000 Company code: AML Select with template button Select with template button Give the G/L account No: 400100 (Salaries account) Enter Change the account group to: raw material consumption Change short text & G/L long text to: Raw material consumption local Select create/bank/interest tab
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Field status group: G003 Save Select edit cost element button Valid from date: 01.04.2006 to 31.12.9999 Enter Cost element category: 1 Save Group together valuation areas: Path: SPRO → material management → valuation & account assignment → account determination → account determination without wizard → group together valuation areas Select position button Give the valuation area: AML1 Enter For valuation area: AMLP – valuation grouping code: X Save Save in your request Define valuation classes: Path: same path Select valuation class button Select copy as button Change the valuation class, class to AML 1 Change the description to raw material local Enter Select valuation class: 7920 (Finished product) check box
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Select copy as button Change the valuation class to AML2 Change the description finished goods Enter & save Save in your request Configure automatic posting: Path: same path Select cancel button Select account assignment button Transaction code: 0BYC Double click on BSX (Inventory posting) Give the chart of accounts: AML Enter Select valuation modifier check box Select valuation class check box Save Valuation modifier: X Valuation class: AML1 Give the account No: 200121 (Inventory raw material local) Valuation modified: X Valuation class: AML2 Account No: 200122 Save
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Save in your request Select back arrow Double click on WRX (GR/IR clearing) Select valuation modifier check box Select valuation class check box Save Valuation modifier: X Valuation class: AML 1 Account No: 100510 (GR/IR raw material) Save Save in your request Select back arrow Double click on GBB (offsetting entry for inventory posting) Select general modification check box Valuation modifier check box Valuation class check box Save Valuation modifier: X General modification: VBR Valuation class: AML Account No: 400000 Valuation modifier: X General modification: AUF
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Valuation class: AML 2 Account No: 300200 (Increase/decrease in stock) Valuation modifier: X Valuation modifier: ZOF Valuation class: AML 2 Account No: 300200 Valuation modifier: X General modification: VAY Valuation class: AML 2 Account No: 300200 Valuation modifier: X Valuation modifier: VAX Valuation class: AML 2 Account No: 300200 Save Save in your request Documents types & number ranges: (OBA7) Select position button Select document type: WE (Goods receipt) Select details button Note down the number range: 50 Select No. range information button Give the company code: AML
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Select change intervals button Select interval button No. range: 50;
year: 2007
From no: 800001 to 900000 Enter & save Select back arrow 3 times Select type: WA (goods issue) Select details button Note down the number range: 49 Select No. range information button Give the company code: AML Select change intervals button Select interval button No. range: 49
year: 2007
From no: 900001 to 1000000 Enter & Save Select back arrow 3 times Select type: RE (gross invoice receipt) Select details button Note down the number range: 51 Select No. range information button Give the company code: AML Select change intervals button
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Select interval button No. range: 51
year: 2007
From no: 1000001 to 1100000 Enter & Save Creation of vendor master in MM (Path: XK01) Give the company code: AML Purchase organization code: AMLR Account group: AML2 Enter Give the name of the vendor: Reliance industries Country: In (INDIA) Select next screen button 3 times Reconciliation account: 100501 Sort key: 012 Select next screen button Payment terms: 0001 Select next screen button 3 times Order currency: INR Select GR based invoice verification check box Save Material master creation: Path: Logistics → materials management → material master → material → create (General) → Immediately (MM01) Give the material No: AMLRM!
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Industry sector: Mechanical Engineering Material type: Raw material Press select views button Select: basic data 1 Select: purchasing Select: General plan data/storage/accounting 1 Select organization levels button Give the plant: AMLP Storage location: HYD Enter Give the description: Raw material 1 Base unit of measurement: Kg Material group: Chem. (chemical) Select purchasing tab Purchasing group: AML (Raw material purchase group) Select accounting 1 tab Division: A1 (Cement division) Valuation class: AML 1(Raw material local) Price control: V (moving average price) Moving price: 50/Total stock: 0 Total value: 0 Save To open material periods: Path: Logistics → material management → Material master → other → Close period (T.Code: MMPV) Give the from company code: AML Period: 8 Fiscal year: 2007 Select check & close period radio button Execute Select back arrow From company code: AML Period: 9 Fiscal year: 2007 Select check & close period radio button Execute Purchase order creation: Path: Logistic → Material management → Purchasing → Purchase order → create → vendor/supplying plant known (T.Code: ME21N) Give the vendor number: 6400001 Purchasing organization: AMLR
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Company code: AML Item: 10 Material: AMLRM1 P.O.quantity: 100 Net price: 75 Plant: AMLP Save Note down the P.O.No: 4500014522 Goods receipts: Logistics → material management → inventory management → goods movement → goods receipt → for purchase order → P.O.No known (T.Code: MIGO) Give the purchase order No: 4500014522 Enter Select quantity tab Quantity in delivery note: 100 Kegs Select item OK check box Select where tab Storage location: Hyd Save Display material document: Path: Logistics → materials management → inventory management → material document → Display (T.Code: MB03) Enter Select accounting documents button Select accounting document button Inventory RM local 7500 – AMLRM1 – AML1 (BSX0) To GR/IR RM local 7500 – AMLRM1 – AML1 (WRA) Qty in GR * rate as per PO 100 * 75 = 7500 Invoice verification: Path: logistics → material management → logistics → invoice verification → document entry → enter invoice (MIRO) Invoice date: 25.11.2007 Reference party bill no: 5678 Amount: 7500/Text: invoice verification Select payment tab Give the base line date: 02/12/2007 Payment terms: 0001 Give the purchase order No: 4500014522 Enter
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Save Ignore the warning message, enter From the menu select invoice document → display Select follow on documents button Double click on accounting document No: Reliance industries A/C Dr 7500 (From purchase order) To GR/IR clearing RM local 7500 → AMLRM1 – AML1 (WRX) Goods issue for consumption: Path: Logistics → material management → inventory management → goods movement → goods issue (MB1A) Give the movement type: 201 Plant: AMLP Storage location: Hyd Enter Give the cost centre: Dept A Material number: AMLRM1 Qty: 10 kegs Save From the menu select goods issue → display Enter Select accounting documents button Select accounting document No Inventory RM local 750 (AMLRM1 – AML1 (BSX0) RM consumption → 750 → AMLRM1 – AML1 → GBBVBR
To view material ledger: Logistic → material management → inventory management → environment → stock → stock for posting date (MB5B) Give the material No: AMLRM 1 Company code: AML Plant: AMLP Select date: 01.04.2007 to 31.03.2008 Select: value added stock radio button Execute
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SD to FI Integration Insert regions: SPRO → general settings → set countries → insert regions Select new entries button Give the country: IN (India) Region: AP; Description Andhra Pradesh Save Define sales organization SPRO → enterprise structure → Definition → sales & distribution → define, copy, Delete click on define sales organization Select new entries button Sales organization: AMLS Description: Hyderabad sales organization Statistics currency: INR Save (or) (Ctrl + S) Ignore the warning message, press enter
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Name: Hyderabad sales organization Country: IN (India) Enter Select create request button Short description: SD Customization for AML Enter Press enter to saving the request Define distribution channel Same path Double click on define distribution channel Select new entries button Distribution channel: AD Description: direct sales Save Save in your request Define shipping point: SPRO → enterprises structure → definition → logistics execution → define, copy, delete, check shipping point Double click on define shipping point Select new entries button Give the shipping point: AMSH Description: Hyderabad shipping point Save Give the name: Hyderabad shipping point Country: IN (India) Enter Press enter to save in your request Assign sales organization to company code SPRO → enterprise structure → assignment → sales and distribution → assign sales organization to company code Select from button Give the company code: AML Enter Select company code: AML Select assign button Select: AMLS check box Enter Save (or) (Ctrl + S) Save in request
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Assign distribution channel to sales organization Same path Select find button Give: AMLS Enter Select: AMLS Select: Assign button Select: AD check box (direct sales) Enter & save Save in your request Assign division to sales organization Same path Select find button Give: AMLS Enter Select: AMLS Select: Assign button Select: A1 (Cement division) Enter & save Save in your request Set up sales area: Path: same path Select find button Give: AMLS Enter Select: AMLS Select: Assign button Select: AD check box (Direct sales) Enter Keep the cursor in AD Select: assign button Select: A1 (Cement division check box) Enter & Save Save in your request Assign sales organization – Distribution channel – plant Select find button Give: AMLS Enter Select: AMLS
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Select assign button Select AMLP check box Enter & Save Save in your request Define rules by sales area: SPRO → enterprise structure → assignment → sales and distribution → business area account assignment → define rules by sales area Select position button Give the sales organization: AMLS Enter For AMLS select rule 001 (Business area determination from plant/division Save Save in your request Assign shipping point to plant SPRO → enterprises structure → assignment → logistics execution → assign shipping point to plant Select find button Give: AMLP Enter Select: AMLP Select: Assign button Select: AMSH (Hyderabad shipping point) check box Enter & Save Define pricing procedure determination SPRO → sales & distribution → Basic functions → pricing → pricing control → define & Assign pricing procedures Double click on define procedure determination Select new entries button Sales organization: AMLS Distribution channel: AD (Direct sales) Division: A1 (Cement division) Document procedure: A (Standard) Customer pricing procedure: select 1 (Standard) Pricing procedure: Select RVW 01 (Standard) Condition type: select PRO0 (Price) Save Save in your request Define tax determination rules:
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SPRO → sales & distribution → basic functions → taxes → define tax determination rules Select new entries button Tax country: select IN (India); sequence: 1 Tax category: select MWST (out put tax) Save Creation of G/L master, sales local own goods (FS00) Give the G/L account No: 300001 Company code: AML Select with template button G/L account No: 300000 (sales account) Company code: AML Enter Change short text & G/L account text to: sales local own goods Select create/bank/interest tab Field status group: G029 (Revenue accounts) Save Select edit cost element button Valid from date: 01.04.2007 to 31.12.9999 Enter Cost element category: 11 (Revenues) Save Assignment of accounts for automatic posting: SPRO → sales & distribution → basic functions → accounts assignment/costing → Revenue account determination → assign G/L accounts (T.Code: VKOA) Double click on table: 001 Select new entries button Application area: select V (sales & distribution) Condition type: select KOFI Chart of accounts: AML Sales organization: AMLS Account assignment group for customer: select 01 (Domestic revenues) Account assignment group for material: select 03 (finished goods) Account key: select ERL (sales revenues) G/L account No: 300001 (sales local own goods) Save Save in your request Set up partner determination: 4 types of partners:
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SP – sold to party – fixed – net modifiable SH – ship to party BP – bill to party PY – Payee Path: SPRO → sales & distribution → basic functions → partner determination → set up partner determination Double click on set up partner determination for customer master Double click on partner function folder Select: SP (Sold to party) Double click on account groups – function assignment folder Select new entries button Partner function: SP (Sold to party), enter: SH (AML); BP (AML2), PY (AML2) Account group: AML2 (SD customer for AML) Enter & Save Save in your request Double click on partner’s determination procedures folder Select new entries button Give the partner determination procedure: AML Name: AML (Partner determination procedure) Save Ignore the message, press enter Select: AML Double click on partner functions in procedure folder Select new entries button Give the partner function: SP (Sold to party) Select not modifiable check box Select mandatory function check box Partner function: SH (Ship to party) Select mandatory function check box Select: BP (Bill to party); select mandatory function check box Select: PY (Payee); select mandatory function check box Save (or) (Ctrl + S) Select back arrow 2 times Select: AML Double click on partner determination procedure assignment folder Select position button Account group: AML2 Enter For AML2: Assign AML Save Assign shipping points: SPRO → logistics execution → shipping → Basic shipping functions → shipping point & goods receive point determination → assign shipping points
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Select new entries button Shipping conditions: 01 (As soon as possible) Loading group: 0003 (Manual) Plant: AMLP Proposed shipping point: AMSH Save, save in your request Creation of customer master: (XD01) Account group: select SD customer for AML Company code: AML Sales organization: AMLS Distribution channel: AD Division: A1 Enter Give the customer name: VBC industries Ltd Country: IN (India) Region: AP Select company code data button Reconciliation A/C: 200110 (Sundry debtors) Sort key: 031 Select payment transactions tab Terms of payments: 0001 Select sales area button Customer pricing procedure: select 1 (Standards) Select: shipping tab Delivery priory: select 02 (Normal) Shipping conditions: select 01 (as soon as possible) Select: billing document tab Select: price determination check box Inco terms: select EXW (From plant) Account assignment group: select 01 (Domestic revenues) Output tax classification: select 1 (Liable for tax) Save Creation of finished goods material master: (MM01) Give the material no: AMLFG Industrial sector: Mechanical engineering Material type: finished product Press: select views button Select: basic data Select: sales: sales Org data 1 Select: sales: sales Org data 2 Select: sales: general/plant data Select: MRP Select: General/plant/data/storage
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Select: accounting 1 Select organization levels button Give the plant: AMLP Storage location: Hyd Sales organization: AMLS Distribution channel: AD Enter Give the description: finished product Base unit of measurement: Kg Gross weight: 1000 grams Select: sales: sales organization data 1 tab Division: A1 Tax classification: select 1 (Full tax) Select: sales: sales organization to tool tab Account assignment: select KP (No check) Transportation group: 0003 (container) Loading group: 0003 (Manual) Select: MRP 1 tab MRP type: select ND (No planning) Select: accounting 1 tab Valuation class: AML2 (finished products) Price control: select S (Standard price) Standard price: 400/Select save button (or) (Ctrl + s) Creation of condition type: Logistic → sales & distribution → master data → conditions → select using condition type → create (VK11) Give the condition type: PR00 (price) Select: key combination button Select: material with release status radio button Enter Give the material No: AMLFG Amount: 500/Valid on: 01.04.2007 to 31.03.2008 Save (or) (Ctrl + S) Select back arrow Give condition type: MWST (Out put tax) Select key combination button Select domestic taxes radio button Enter Give the country: IN (India) Valid on 01.04.2007 to 31.12.9999 Tax classification customer: 1 (Liable for tax) Tax classification for material: 1
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Tax code: select AO Save Ignore the message, press enter
Profitable analysis (CO – PA) Co – Controlling PA – Profitability analysis This is used to view profitability for number of parameters at a time If the client want to view profitability Product wise/customer wise/sales order wise/plant wise/sales organization wise - This is called data cube - This is a reporting tool - Product costing is based on the based on data flown from MM, PP, FI, CO Here we have - Account based/ costing based/both wise profitability analysis - Here we create operating concern Operating concern can be
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- Equal to controlling area (or) above controlling area Controlling area can be equal to company code (or) above company code Structure: company code = controlling area = operating concern We are using called data structure
Profitability segment: In consist of → system defaulted characteristics Client required characteristics Example of client required characteristics: 1. Sales employee wise profitability 2. industry wise profitability Data flow in profitability analysis SD to FI a) Enquiry & quotation b) Sale order: customer product plant sales organization quantity price delivery terms & payment terms c) Delivery: with out posts goods issue/with post goods issue d) Billing
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Define operating concerns: SPRO → controlling → profitability analysis → structures → define operating concern → maintain operating concern Operating concern: 1234 (it should be 4) Select create button Ignore the warning message, press enter Give the description: operating concern for AML Select costing based check box, actual based check box Select attributes tab Give the operating concern currency: INR Select company code currency check box Fiscal year variant: V3 Save Select data structure tab Select create button under data structure Select the characteristic: KNVTNR (sales employee) Select left arrow Select value fields tab Select: VV010 (Revenues) Select: VV140 (cost of goods sold) Select left arrow From the menu select data structure → save From the menu select data structure → activate Select back arrow Select ‘yes’ button for the message to generate the operating concern environment Ignore the message, press enter Define profitability segment characteristics: (In segment level characteristics) Path: same path (T.Code: KUQ3) Give the operating concern: 1234 Enter For product & customer Select costing base & Account base radio butt Save Save in your request Assign controlling area: to operating concern: Path: SPRO → enterprise structure → assignment → controlling → assign controlling area to operating concern Select position button Give the controlling area: AML Enter: for controlling area: AML, assign operating concern: 1234 Save
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Ignore the warning message, press enter Define No. range for actual postings: SPRO → controlling → profitability analysis → flows of actual values → initial steps → define number ranges for actual postings (T.Code: KEN1) Give the operating concern: 1234 Select maintain group’s button Select generated groups check box From the menu select interval → maintain Give the No from: 1 to 999999999 Save Maintain assignment of SD conditions to Co –PA value fields Path: SPRO → controlling → profitability analysis → flows of actual values → transfer of billing document → assign values fields Double click on maintain assignments of SD conditions to CO – PA value fields (T.Code: KE41) Select new entries button Open one more session & set operating concern idea Path: SPRO → controlling → profitability analysis → structures → set operating concern Give the operating concern: IDEA Enter Use the transaction code: KE41 Come to the 1st session Give the condition type: PR00 (rice) Select value fields – VV010 (Revenue) Select VPRS (Costs) Select value fields – VV140 (cost of goods sols) Save Maintain PA (profitability analysis structure for direct postings: SPRO → controlling → profitability analysis → flows of actual values → direct postings from FI/MM → maintain PA transfer structure for direct postings (T.Code: KET2) Select the structure: FI (Financial accounting to CO-PA) Double click on assignment lines folder Select: 20 (Direct revenues from FI) Double click on source folder Give the cost element: from 300000 to 399999 Double click on value fields’ folder
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Select new entries button Qty/value → select value field Fixed variable → select 1 (fixed amounts) Value fields’ → select VV010 (Revenue) Save Save in your request Double click on assignment lines folder Select assignment: 10 (Direct costs from FI) Give the costs element: From 400000 to 499999 Double click on value fields’ folder Select new entries button Qty/value → select value field Fixed variable → select 1 (fixed amounts) Value fields’ → select VV140 (Cost of goods sold) Save Activate profitability analysis: Path: same path (T.Code: KEKE) Select position button Give the controlling area: AML Enter For controlling area: DRL – Activate status a4 (Component active for both types of profitability analysis) Save Save in your request Sale order creation: Path: Logistics → sales & distribution → sales → order → create (T.Code: VA01) Give the sales organization: AMLH Distribution channel: AD Division: A1 Order types: OR (standard order) Enter Sold to party: VBC industries Pvt. Ltd Give the P.O. order: 5678 Required delivery date: 03.12.2007 Delivery plant: AMLP Payment terms: 0001 Item: 10; Material No: AMLFG Order qty: 1 kg Enter Ignore the message, press enter Select item 10
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From the menu select → go to item condition Select: shipping tab From the menu select edit → Incompletion log Save (or) (Ctrl + S) Note: Sales order No: 8209 Production receipt with out production order: Path: Logistics → Material management → Inventory management → goods movement → goods receipt → other (MB1C) Give the movement type: 521 Plant: AMLP Storage location: Hyd Enter Give the material type: AMLFG Qty: 20 kegs Save Ignore the warning message, press enter From the menu select other goods receipts → display Enter Select accounting documents button Select accounting documents No: Account No
Description
INR
200122 300201
Inventory FG 10000 - DRLFG1 – DRL1 (BSX) Inc/Dec in stock FG 10000 – DRLFG1 – DRL1 (GBBZAX) Qty & standard price
Delivery: Logistics → sales & distribution → sales → order → subsequent functions → outbound delivery (VL01N) Give the shipping point: AMLS Give the sales order number: 8209 (what it is created in sales order) Enter Actual GI date (Goods issue date): 03.12.2007 Select item: 10 Select picking tab Pick quantity: enter 1 Select post goods issue button From the menu select out bound delivery → display Enter
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From the menu select environment → document flow Keep the cursor on goods issue Select display document button Select accounting documents button Select accounting document No: 200122 300201
Inventory FG Inc/dec in stock FG
500 → DRLFG1 → DRL1 → (BSX) 500 → DRLFG1 → DRL1 → GBBVAY
Billing document: Same path: (VF02) Select the delivery document No: 11341 Enter Save From the menu select billing document → display Select accounting button Select accounting document No Report generation through report painter Define forms SPRO → controlling → profitability analysis → information system → report Components → define forms → define forms for profitability reports Double click on create from Give the form name: AML Description: AML form (T.Code: KE34) Select two axes (Matrix) radio button Select create button Select operating concern currency radio button Enter Double click on: Row 1 Select value field with characteristics radio button Enter Value field select: VV01 (Revenue) Select: confirm button Double click on row 2 Select value field with characteristics radio button Enter Value field select: VV140 (Cost of goods sold) Select: confirm button Double click on: Row3 Select formula radio button Enter
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Select Y001 (Revenue) Select Minus (-) button Select Y002 (Cost of goods sold button) Enter Short description: Net profit Select copy short text button Enter Double click on column 1 Select characteristics radio button Enter Select from the available characteristics plan/actual indicator Select left arrow For plant/actual indicator: select 0 (Actual data) Select confirm button Save From the menu select edit → General data selection → General data selection From the available characteristics select record type, select period/year Select left arrow For record type: select from column B to column select F (Billing data) For period/year For from column: select variable on/off check box Local variable: enter 1 Enter For to column: select variable on/off check box Give the local variable: 2 Enter Select confirm button From the menu select extras → variable → variable of definition 1 – Description: from period/year 2 – Description: to period/year Enter & Save Create profitability report: Same path Double click on create profitability report Transaction code: KE31 Give the report name: AML profit Description: AML profitability Select: Report with from radio button Give the form name: AML Select create button Select customer, product, plant, select sales organization from characteristics list
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Select left arrow Select output type tab Select: Class drill down radio button Select available on selection screen check box Save Select execute button Give from period/year: 01.2007 To period/year: 12.2007 Execute Ignore the message, select ‘yes’ button To view product wise: From the message select navigate → switch drill down Double click on product
Product costing This is used for valuation of inventories like work in process & finished goods. - Data is flow MM, PP, FI&CO modules - Product costing made easy – sap labs - When we will take production – it will be standard cost - In the month ending we will knows the actual cost - The difference will be settle variances of accounts Data flow in product costing: Example: Product AMLFGI Cost sheet
AML finished goods
Raw material Raw material over heads Production cost
XXX (qty from BOM * rate from material master) XXX (10% of raw material) XXX (hours required * machine hour rate)
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------XXX
Cost of goods manufacturing (COGM) Admn & selling & dist exp
XXX ------XXX
Cost of goods sold Sales budget → production budget Sales budget: Make to order Make to stock
Production budget: material requirements plan Over heads planning MM Material master Accounting view Raw material (AMLRM1) – Moving average price – 75/(AMLRM2) – Moving average price – 100/PP: bill of material (BOM) required for production AMLRM1 – 1kg AMLRM2 – 1kg
Dept A
Dept B
Dept C
Dept D
→
X
→
→
→ Work centre in PP
(Finished goods (AMLFG))
Finished product (AMLFG) process flow A → C → D (Routing) Salaries – 200000 Wages - 500000 Rent - 20000 720000 Machine – 100 machines Machine hours = 100 * 24 hours * 30 days = 72000 machine hours Machine hour rate = 720000/72000 = 10/- per hour To produce finished product AMLFG say 5 machine has = 5 * 10 = 50 Creation of secondary cost elements:
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1. Overhead cost element 2. activity cost element Use the transaction code: KA06 Use the cost element: 1100000 Valid from: 01.04.2007 to 31.12.9999 Enter Give the name: RM overhead rate Description: RM overhead rate Cost element category: select 41 (Overhead rate) Save One more cost element: 1200000 Valid from: 01.04.2006 to 31.12.9999 Enter Give the name: Activity cost element Description: Activity cost element Cost element category: select 43 (internal activity allocation) Save Creation of activity type: (Called machine hour) Accounting → controlling → cost centre accounting → master data → activity type → individual processing → create (KL01) Activity type: AML Valid from: 01.04.2007 to 31.12.9999 Enter Name: Machine hour Description: Machine hour Activity unit: select H (Hour) Cost centre category: select * (All cost centre category) Enter Activity type category: select 1 (Manual entry, manual allocation) Allocation cost element: select 1200000 Save Creation of 2 cost centers: (KS01) Give the cost centre: Dept G Valid from: 01.04.2007 to 31.12.9999 Reference cost centre: Dept A Controlling area: AML Enter Change the name to dept G Description: cost centre dept G Other fields are common Save (or) (Ctrl + S)
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One more cost centre: dept H Valid from: 01.04.2007 to 31.12.9999 Reference cost centre: dept A Controlling area: AML Enter Change the name to dept H Cost centre: dept H Cost centre category: select 9 (Allocation cost centre) Save Creation of cost center group: (KSH1) Give the cost center group: AML prod Enter Give the cost centre group: AML prod Select insert cost centre button Give the cost centre: dept G Select save button (or) (Ctrl + S) Define overhead keys: SPRO → controlling → product cost controlling → basic settings for material costing → overhead → define overhead keys Select new entries button Overhead key name: AML Description: AML overhead key Save Save in your request Define overhead group: Same path Select new entries button Valuation area: AMLP Overhead group: AML Overhead key: AML Name of overhead group: overhead group for AML Save Save in your request Define calculation bases: SPRO → controlling → product cost controlling → product cost planning → basic settings for material costing → overhead → costing sheet components → define calculation bases Select new entries button
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Base: A1 Name: raw materials Save, save in your request Select: A1 Double click on details folder Give the controlling area: AML Enter Select new entries button From cost element: 400000 to 400099 Save Select back arrow 3 times Select: new entries button Base: A2 Name: production cost Save Select: A2 Double click on details folder Give the controlling area: AML Enter Select new entries button From cost element: 400100 to 400299 : 400500 : 1200000 Save (or) (Ctrl + S) Define percentage overhead rates Path: same path Select: new entries button Overhead rate: A3 Name: raw material overhead rate Dependency: select DO10 (overhead type H keys) Save Save in your request Select: A3 Double click on details folder Ignore the message, press enter Select new entries button Valid from: 01.04.2007 to 31.03.2008 Controlling area: AML Overhead type: select 2 (Planned overhead rate) Overhead key: AML Percentage: 15% One more:
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Valid from: 01.04.2007 to 31.03.2008 Controlling area: AML Overhead type: select 1 (Actual overhead rate) Overhead key: AML Percentage: 10% Save Save in your request Define credits: Same path Select new entries button Give the credit key: A4 Name: raw material credit key Save Save in your request Select: A4 Double click on details folder Give the controlling area: AML Enter Select new entries button Valid to: 31.03.2008 Cost element: 1100000 (Raw material overhead rate) Fixed percentage: 100% Cost centre: dept H Save Example: RM1 – Handling charges Dr – Dept H – 3000 To bank 3000 RM2 – Handling charges Dr – Dept H - 7000 To bank 7000
Production 1 RM cost 10% of cost
Production 2 30000 30000
RM Cost 10% of cost
7000 7000
Define costing sheet:
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SPRO → controlling → product cost controlling → basic settings for material costing → overhead → define costing sheets Select new entries button Costing sheet: AML Description: AML costing sheet Select: AML Double click on costing sheet rows folder Select new entries button Give row: 10 Basic: A1 (Raw materials) Row: 20 overhead rate: A3 (Raw material overhead rate) From: 10 to Row 10: Credit: A4 Row: 30. Base: A2 (Production cost) Row: 40. Description: Cost of goods manufacture From Row 10 to Row 30 Save (or) (Ctrl + S) Assign costing sheet to costing variant: SPRO → controlling → Product cost controlling → product cost planning → material cost estimate with quantity structure → define costing variance Transaction code: OKKN Select costing variant: PPK1 (Standard cost estimate (Material)) Select details button Select valuation variant button Select create button (Beside valuation variant/plant) Select new entries button Give the plant: AMLP Save, save in your request Select back arrow Select valuation variant: 001 with plant: AMLP Select details button Select overhead tab Give the costing sheet: AMLP costing sheet The costing sheet: AMLP costing sheet Save Define cost component structure: SPRO → controlling → product cost controlling → product cost planning → basic settings for material costing → define cost component structure Select structure: 01 Double click on: cost component with attributes folder Select: cost component 10 (Raw material)
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Double click on: cost component with attributes folder Select: cost component 10 (Raw material) Double click on assignment cost component – cost element interval folder Select new entries button Cost component structure: 01 Chart of accounts: AML From cost element: 400000 to 400099 Cost element: 010 (Raw materials) Save, ignore the warning message, and enter Save in your request Double click on cost component with attributes folder Select component: 80 (Material overhead) Double click on assignment cost component – cost element interval Select new entries button Cost component structure: 01 Chart of accounts: AML From cost element: 1100000 (Overhead rate) Cost component: 080 (Material overhead) Save Double click on cost element with attributes folder Select cost component: 50 (Production machine) Double click on assignment cost component cost element interval folder Select new entries button Cost component structure: 01 Chart of accounts: AML From cost element: 400100 to 400299 Cost element structure: 050 One more Cost component structure: 01 Chart of accounts: AML From cost element: 400500 Cost element structure: 050 Cost component structure: 010 Chart of accounts: AML From cost element: 1200000 Cost element structure: 050 Save Double click on cost element structure folder For ‘0’ select active check box Save (or) (Ctrl + S) Determine person responsible for work centre: Path: SPRO → production → basic data → work centre → general data → determine person responsible
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Select new entries button Give the plant: AMLP Person responsible: A Give the responsible: Mr. A Save Save in your request Define MRP controller: (MRP: Material requirement planning) SPRO → production → material requirement planning → mater data → define MRP controllers Select new entries button Give the plant name: AMLP MRP controller: B Description: Mr. B Save Save in your request Define floats (scheduling margin key) (Floats cushion period) Path: SPRO → production → material requirement planning → planning → scheduling & capacity parameters → define floats (Scheduling margin key) Select new entries button Give the plant name: AMLP Schedule margin key: AML Opening period: 2 days Float before production: 2 days Float after production: 2 days Release period: 2 days Save Save in your request Define production scheduler: SPRO → shop floor control → master data → define production scheduler Select new entries button Plant: AMLP Production scheduler: C Production scheduler name: Mr. C Save (or) (ctrl + s) Planning cost centre wise (KP06) Version: 0 From period: 9 to 9 Fiscal year: 2007
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Cost centre: Dept G Next page Cost centre: 400100(Salaries) Select from based radio button Select over view screen button Give plan fixed cost: 720000 Save Planning for machine hours: Accounting → controlling →cost centre accounting → planning → activity ad put prices → change (KP26) Version: 0 From period: 9 to period: 9 Year: 2006 Cost centre: Dept G Activity type: AMI Select from based radio button Select overview screen button Give plan activity 72000 (100 machines* 3 shifts * 30 days) Save Machine down rate calculation: Accounting → controlling → cost centre accounting → planning → allocations → price calculation (KSPI) Select cost centre group radio button Give the cost centre: AMLPROD Version: 0 From period: 9 to period: 9 Fiscal year: 2006 Execute Select save button (or) ctrl + s) Ignore the message, press enter Creation of material master: (MM01) Give the material number AMLRM2 Industry sector Mechanical engineering Material type: Raw material Press: select use button Select: Basic data. Purchasing general plant data storage one accounting Select organization levels button Give the plant: AML Storage location: Hyd Enter
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Give the description: Raw material Basic unit of measurement: Kg Material group: Chem. Select purchasing tab Purchasing group: AML Select: Accounting l tab Valuation class: AML l Price control: V Moving price: 100 Save Creation of finished goods master (MM01) Material No: AMLFG1 Industry sector Mechanical engineering Material type: Finished product Press select views button Select: Basic data1. MRP1, MRP2, work scheduling general plant data/storag1. Accounting1. costing1. Select organization levels button Plant: AMLP Storage location: Hyd Enter Give the description: Finished product1 Basic unit of measurement: Kg Select: MRP1 tab MRP type: select PD (MRP) MRP controller: select B (Mr. B) Lot size: select ex (lot for lot order quantity) Select MRP2 Tab In house production: 0 days Schedule margin key: AML Select work schedule time tab Ignore the warning message: enter Production: scheduler C Select accounting tab Valuation class: AML2 Price control: S (Standard) Give the standard price: 300 Select costing tab Overhead group: select AML Availability check: Select KP (No check) Save Creation of bill of material:
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Logistic → production → master data → bill of material → material BOM → create (CS01) Give the material No: AMLFG1 Plant: AMLP BOM usage: Select 1 (Production) Enter Give the component For item 10: AMLRM1; qty: 1kg Item 20: AMLRM2; qty: 1 Save Creation of work center: Logistics → production → master data → work centers → work centers → create (CR01) Work centre: Dept G Work centre category: select 0001 (Machine) Select basic data button Give the description: work center Dept G Person responsible: A Usage, select 009 (All task list types) Standard value key: SAPI (Normal production) Select costing tab Start date: 01.04.2006 Cost centre: Dept G For activity machine: Give the activity type AML Performance unit: H (Hour) Formula key: SAP002 (Production machine types) Save Creation of routing: Logistics → production → master data → routings → standard routings → create (CA01) Give the material No: AMLFG1 Plant: AMLP Enter Usage: select (Production) Status: select 4 (Release (General)) Select operation button For operation at tab give the work centre: Dept G Control key: select PP01 (In house production) Select operation: 10 and double click Machine: standard values: 5 Unit: H (hours) Save
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Creation of cost estimate with quality structure: Accounting → controlling → product cost controlling → product cost planning→ material costing → cost estimate with quantity structure → create (T.Code: CK11N) Give the material: AMLFG Plant: AMLP Costing variant: PPCI (Standard cost estimate) Enter Give the costing date from: 08.12.2006 costing date to 31.12.9999 Qty structure date: 08.12.2007 Valuation date: 08.12.2007 Enter Standard cost should be: 251.25 Cost sheet RM – AMLRM1 – 75 - AMLRM2 – 100
RM overhead 15% Production costs (5 * 10) machine hours
175.00 26.25 50.00 251.25
From the menu select: cost → display cost components Select save button (or) (Ctrl + S) Enter
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