Actual costing with material ledger, Material ledger configuration

ACTUAL COSTING

CO consultant Job:

Check costing variants for Manufacturing orders (PP)

Path :SPRO-Controlling -Product cost controlling -Cost object controlling -product cost by order -Manufacturing orders -Check costing variants for manufacturing orders(PP) (Tr.code is 0PL1)

Select costing variant PPP1 Production order plan

Select details button

   Select valuation variant button

  Select create button beside valuation variant /plant

  Select new entries button

In plant:    BILP

Save

  Press enter to save in your request

  Select back arrow

  Select valuation variant : 006 with plant BILP

  Select details button

  Select overhead tab

  Give the costing sheet

  Save

  Select back arrow

  Select costing variant PPP2 production Order Actual

  Select details button

  Select valuation variant button

  Select create beside valuation variant/plant

  Select new entries button

   In plant:  BILP

  Save

  Press enter to save in your request

  Select back arrow

  Select valuation variant 007 with plant :BILP

  Select details button

Select overhead tab

Costing sheet:  select BIL costing sheet

Save

Define goods received valuation for order delivery:

Same path

Select new entries button

Valuation area:  BILP

Valuation variant:  007 production order -Actual

Save

Press enter to save in your request

Work in process customization

Creation of 5 secondary cost elements (Tr code is KA06)

Give the cost element:  1100000

Valid from:  01.04.2008 to 31.12.9999

Enter

Name & Description:   Order /Project result analysis

Cost element category:   select 31 (order /project results analysis)

Save

Cost element:   1100001

Reference cost element:   1100000

Controlling area:   BIL

Enter & Save

Cost element:   1100002

Reference cost element:   1100000

Controlling area:   BIL

Enter & Save

Cost element:   1100003

Reference cost element:   1100000

Controlling area:   BIL

Enter & Save

Cost element:   1100004

Reference cost element:   1100000

Controlling area:   BIL

Enter and Save

Define results analysis keys

Path :SPRO-Controlling -Product cost controlling -Cost object controlling -Product
cost by order -Period end closing -Work in process -Define results-Analysis keys(TC- OKG1)

Result analysis key :FERT WIP calculation for production orders

Define results analysis versions(Tr  code  OKG9)

Same path

Select new entries button

Select controlling area:   BIL

Technical result analysis cost element:   select 1100000

 
Save

Press enter to save in your request

Define valuation method (Actual cost) ( Tr code is OKGC)

Same path

Select new entries button

 Select actual cost button

Controlling area                                        :BIL

Result analysis version                             :0

Result analysis key                                    :FERT

Enter & Save

Press enter to save in your request

Define line Id’s

Same path

Purchase of to get the break up of WIP (Work In Progress)value

Select line ID  EL (Revenues)

                        EK    Direct cost

                        FK    Production cost

                        ABR   settled cost for controlling area 1000

Select copy as button (F6)

Change the controlling area to BIL for all line ID’s

Enter & Save

Press enter to save in your request

Define Assignment  (OKGB)

Same path

Select line ID EL that is revenues for controlling area:1000

Select copy as button

Change the controlling area to BIL

Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999)

Enter & Save

Press enter to save in your request

Select line ID :EK Direct cost for controlling area 1000

Select copy as button

Change the controlling area to BIL

Change mass cost element to 00004000++

Enter and save

Select line ID FK that is production cost for controlling area 1000

Select copy as button

Change the controlling area to BIL

Production cost elements:

400100 -400199 Personnel               00004001++

400200-400299 Manufacturing        00004002++

400500-400599 Depreciation           00004005++

1200001 Activity allocation             00012+++++

Change master key cost element to 00004001

Enter & Save

Notes: for define assignment line ID brak up of WIP

                                     Dept A             Dept B         Dept C

Issue RM                                       work in progress

RM over head

Production costs           100000             200000

Calculate internally WIP by using secondary cost elements and transfer to financial

accounting require the break up of WIP by using line ID’s and account assignments to
line ID’s.

Select line ID FK production cost for controlling area BIL

Select copy as button

Change the mass cost element to 00004002++

Enter & Save

Select 2FK line ID’s for controlling area BIL

Select copy as button -Change masked cost element from first

line ID 00004005++
Change to 00012+++++

Enter & save

Select bank arrow

Select line ID ABR Settled cost for controlling area 1000

Select copy as button

Change the controlling area to BIL

Change mass cost element to 0001000001 :(settlement cost element)

Enter & save

Define update; (Tr.code is OKGA)

Same path

Select new entries button

Controlling area:   BIL

Version:   0

Result analysis key:   FERT

Line ID:   select EL revenues

Category:   select N (costs not to be included)

Controlling area:   BIL

Version:   0

Result analysis key:   FERT

Line ID:   Select EK (Direct cost)

Category:   select K cost

WIP:   1100001

Revenues:   1100002

Controlling area:   BIL

Version:   0

Revenues analysis key :   FERT

Line ID           :FK production cost

Category                                                   :select K cost

WIP creation                                             :1100003

Reserves creation                                      :1100004

Select page down button

One more controlling area :BIL

Version                                                      :0

Result analysis key                                    :FERT

Line ID                                                     :ABR settled cost

Category                                                   :select A (Settled cost )

Save

Press enter to save in your request

Creation of two GL Masters:

WIP entry

Work in process           DR     BS          CA(Current assets, Loans & Advances)

To Increase /Decrease in WIP    P & L Credit INC/DEC in stocks

FS00

Give the GL Account no. :   200123

Company code :   BIL

Select with template button

Give the GL A/c No.   200121 INV RM local

 Company code :   BIL

Enter

Change short text to and GL A/c long text to work  in process

Other fields are common

Save

GL A/c No.   300201

 Company code :   BIL

Select with template button

Give the GL A/c no.300200  Increase /Decrease stocks FG

Company code:   BIL

Enter

Change short text and GL A/c loge text to INC/DEC stocks - WIP (Work in Progress)
Save

Define posting result for setting work in process

Path :Up to period end closing the path is same -Work in process -Define posting results for setting work in process (OKG8)

Select new entries button

Controlling area                                        :BIL

Company code                                          :BIL

Result analysis version :select 0

Result analysis category :WIPR (Work in Process with requirement to Capitalized)

P & L A/c                                                  :300201

Balance sheet                                            :200123

Save

Press enter to save in your request

Define results analysis version (OKG9)

Same path

Select controlling area                               :BIL

select details button

Select transfer to Financial accounting check box

 Save

Ignore the warning message press enter

Press enter to save in your request

RM issue overhead production costs Dept A       Dept B    Dept D

                                                                            FG not received

Settle to accounts by using secondary costs elements break up WIP (BY using line IDs)

Define variance keys:

Path :Up to period end closing the path is same -Variance calculation :

Define variance keys (OKV1)

Select variance key 00001 Production order

Select copy as button

Change the variance key to BIL1

Change the name also variance key for BIL

Enter & Save

Define default variance keys for plants (OKVW)

Same path

Select position button

Give the plant                                           :BILP

Enter

For plant                                                    :BILP

Assign variance key                                  :BIL1

Save

Press enter to save in your request

Define target cost version: (OKV6)

Notes:

Budgeted cost =Budgeted production Qty         Standard price

Standard cost =Standard quantity * Standard price

Target cost =Actual production qty                   standard price

Actual cost =Actual Production *   actual price

Path :Same path

Select controlling area 1000 with target cost version 0

Select copy as button

Change the controlling area to BIL

Change the description to target cost version for BIL

Enter & Save

Press enter to save in your request

Assign variance key in Material master

Path :Logistics -Material management-Material master -Material -Change -
Immediately (MM02)

Give the material no.BILFG1
Press select views button
Select costing 1 view
Enter

Give the plant  :BILP

 Enter

Variance key:   select BIL1

Save

Creation of cost element group (KAH1)

Give the cost element group:   BILPRODN

Enter

Description:   Production cost element for BIL

Select Edit-Cost element -Select insert cost element button

400100             400299    Personnel & Manufacturing

400500           400599    Depreciation

1200001                        Activity allocation

Save

Create allocation structure:

Path :SPRO-Controlling -Product cost controlling- Cost object controlling -Product cost by order-Period end closing -Settlement -create allocation structure

Text:   BIL Production differences allocation structure

Save

Press enter to save in your request

Select:   B2

Double click on assignments folder

Select new entries button

Assignment        Text

01                       Direct costs(Raw materials)

02                       Material overheads

03                       Production costs

Save

Select assignment 01
Double click on source folder

From cost element:   400000

To cost element:   400099

Double click settlement  cost elements folder

Select new entries button

Receiver category:   select G/L, GL account

Select by cost element check box

 Save

Double click on assignments folder

Select assignment 02 Material overheads

Double click on source folder

From cost element :1200000 RM overhead rate

Double click on settlement cost elements folder

Select new entries button

Receiver category:   select G/L , GL Account

Select by cost element check box

 Save

Double click on assignment folder

Select assignment 03 production cost

Double click on source folder

Give the cost element group :BILPRODN

save

Double click on settlements cost elements folder

Select new entries button

Receiver category:   select G/L

Select by cost element check box

 Save

Create settlement profile:

Same path

Select new entries button

Settlement profile:   BIL

Description:   BIL production order differences settlement profile

Select to be settled in full radio button

Allocation structure :B2

Default object type:   select G/L

Select % settlement check box

Select equivalence number check box

 Select amount settlement check box

Under valid receivers for GL account :Select settlement required

Document type:   SA

Maximum no.of distribution rules :   999

Residence time:   12 months

Save

Press enter to save in your request

Define CO.No.range interval for the business transactions

RKL -Actual Activity Allocation

KZPI- Actual overhead (Periodic)

User transactions code :KANK

Give the controlling area:BIL

Select maintain groups button

Double click on RKL

Double click on KZPI

Select Co. No. range interval for BIL check box

From the menu select -Edit -Assign element group

 Save

Ignore the warning message press enter

Define exchange rate for  type P (Standard truncation for cost

planning for INR to EURO (Transactions code OB08)

Select new entries button

Exchange rate type:   P

Valid from:   01.12.2008

From currency:   INR

To currency:   EUR

Direct quotation:   0.02

Save

Press enter to save in your request

FI Consultant job

BILRM2                receipt

Purchase order                   Opening stock

|

GR
|

IV

Inventory RM local    DR                  BSX

To Stock taking          GBB               BSA   Current liability & provision

Production order differences are to be settled to accounts

Production order differences manufacturing  DR PRD
                         To INC/DEC in stocks FG GBB AUA

Creation of 2 GL masters (FS00)

Give the GL A/c No.400201

Company code:   BIL

Select with template button

Give the GL A/c No. :400200 Conversion charges

Company code:   BIL

Change short text and GL account long text to production order differences

Select create /bank/Interest tab

Field status group change to G014 MM adjustment account

 Save

GL A/c No.:   100599

Company code:   BIL

Select with template button

Give the GL A/c No.100500 VAT payable

Company code:   BIL

Enter

Select type /Description tab

Chang short text and GL account long text to Stock taking

Select create /bank /interest tab

Change the field status group G049 (manufacturing cost accounts)

 Save

Give the GL account no.300200 INC/DEC stock in FG

Company code:   BIL

Select edit cost element button

Valid from :   01.04.2008 to 31.12.9999

 Enter

Cost element category:   select 22 external settlement

Save

Assignment of account for automatic postings (OBYC)

(See the material )

Double click on transaction PRD Cost (Price) differences

Give the Chart of Accounts:   BIL

Enter
Save

Give A/c No.400201 production order differences

 Save

Press enter to save in your request

Select back arrow

Double click on GBB offsetting entry for inventory posting

Valuation modifier:   X

General modification  :BSA opening stock taking

Valuation class:   BIL1

Account no.:   100599 stock taking account

Valuation modifier:   X

General modification  :   AUA production

Valuation class:   BILL

Account:   300200

Save

Press enter to save in your request

PP CONSULTANTS AREA

Define order type -Dependent parameters

Path :SPRO-Production -Shop floor control-Master data –Order

-Define order type dependent parameters. (Tr code is OPL8)

Select plant:   1000 with order type PP01

Select copy as button

Change the pant to BILP

Enter and Save

Press enter to save in your request

Define scheduling parameters for production orders

Path :Up to Shop floor control the path is same- Operations-Scheduling -Define scheduling parameters for production orders (Tr code is OPU3)

Select plant:   1000 with order type PP01

Select copy as button

Change the plant to BILP

Enter and save

Press enter to save in your request

Define confirmation parameters

Path :Up to shop floor control the path is same -Operations-Confirmation-Define confirmation parameters (OPK4)

Select plant 1000 with order type PP01

Select copy as button

Change the plant to BILP

Enter and Save

Press enter to save in your request

Define checking control

Path :Up to shop floor control the path is same -Operations -Availability check

-define checking control (OPJK)

Select business function:   1 & 2 for order type PP01 for plant 1000

Select copy as button

Change the plant to BILP

Enter

Change the plant to BILP

Enter and save

Press enter to save in your request

END USER AREA

Creation of production order:

Path :Logistics -Production-Shop floor control-Order -Create -with material (Tr code is CO01)

Give the material:   BILFG1

Production plant:   BILP

Planning plant:   BILP

Order type:   select PP01 Production order

Enter

Give the total Qty under quantities :10
Start date & end date :Today’s date
Select cost order button (Ctrl+F7)

From the menu select Goto   Costs -Analysis

Select back arrow

Select release order button (Ctrl+F1)

 Save

From the menu select order display note the order no.60003225

 Enter

Select assignment tab

Not  to the reservation no.66076

Raw material receipt by way of opening stock

Path :Logistics -Materials management -Inventory management -goods movement-Goods receipt -Other (Tr code is MBIC)

Give the movement type:   561

Plant:   BILP

storage location:   HYD

Enter

Give the material no.:   BILRM2

Quantity:   100 kgs

Select save button or Ctrl+S

From the menu select other goods receipts display

Enter

Select accounting documents button

200121     Inventory RM LCL 15000 BILRM2    BIL1   BSX

100599     Stock taking            15000 BILRM2    GBB   BSA   BIL1

                                                                   100*150

Raw material issue to production order:(Tr code is MB1A)

Select to reservation button

Give the reservation no.66076

 Enter

                           Qty

BIL RM1:           15

BIL RM2:           15

Save

From the menu select goods issue display

Enter

Select accounting documents button

 Select accounting document no.

200121         Inventory RM local              1125 BILRM1 BSX   BIL1

400000         RM consumption local        1125 BILRM1 GBB VBR   BIL1

                                  Quantity consumed * Avg rate ( 15 *75)

200121          Inventory RM local             2250 BILRM2 BSX BIL1

                                                                                 GBB       VBR

400000         RM consumption local2250                 BILRM2      BIL1

                                   Qty consumed * Avg. rate (15*150)

Actual overhead calculation

Path :Accounting -Controlling -Product cost controlling -Cost object controlling-product cost by order -Period end closing -single functions -Overhead -Individual processing (Tr code is KGI2)

Give the order no.:   60003225

Period:   9

Fiscal year:   2008

Select text check box

Select dialog display check box

Execute

Select back arrow

Deselect text run check box

 Execute

Work in process calculation

Path :up to single functions the path is same -Work in process -Individual processing

-Calculate  (Tr code is KKAX)

Give the over no.:   60003225

WIP period:   9

Fiscal year:   2008

Result analysis version :select 0
Select test run check box
Execute

Select back arrow

Deselect test run check box

 Execute

Settlement of work in process to accounts

(31.12.2008 (month end date)

Path :Up to single functions the path is same -Settlement of individual processing (Tr code is K088)

Give the order no.:   60003225

Settlement period:   9

Fiscal year:   2008

Deselect text run check box

Select check transaction date check box

 Execute

Select detail lists button

Select accounting documents button

Select accounting document no.

300201      INC/DEC in stock WIP 3713 P &L Account

200123      Work in Process 3713 Balance Sheet

(Actual RM +Actual RM overheads)

To view work in process report

Path :Accounting -Controlling -Product cost controlling -Cost object controlling

-Product cost by order -Information system -Reports for product cost by order

 -Object list -Order selection  (Tr code is S_ALR_87013127)

Plant:   BILP

Material number:   BILFG1

From period:   01  2008

To Period:   9  2008

Execute

Select report call button

Confirmation of production order

Path :Logistics -Production -shop floor control -Confirmation -Enter-For operation –time ticket (Tr code is Co11N)

Give the order no. :   60003225

Operation /Activity:   10 kg

Confirmation type:   select final confirmation

Yield to confirm:   10 kg

Fro activity 2 to confirm:   60 Qty

Unit:   H (Hour)

Save

Production receipt

Path :Logistics -Material management -Inventory management -Goods  movement -Goods receipt for order (Tr code is MB31)

Give document date:   31.12.2008

Posting date:   31.12.2008

Give the movement type:   101 (Goods receipt for order into ware house)

Order                                                                     :60003225

Plant                                                                      :BILP

Storage location                                                    :HYD

Enter

Ignore the warning message press enter

Select save button or Ctrl+S

From the menu select goods receipt display

Document no.5000011861

Enter

Select accounting documents button

 Select accounting document no.

200122        Inventory FG 2860        BILFG1BSX   BIL2

                                                                                   GBB   AUF

300200       INC/DEC in stocks FG 2860 BILFG1    BIL2

                           Qty produced * standard rate

                                          10*286

To make production order technically complete (TECO)

Path :Logistics -Production -shop floor control -Order -Change (Tr code is CO02)

Give the order no.60003225

Enter

From the menu select functions -Restrict processing -Technically complete
Save

Calculation of variances

Path :Accounting -Controlling-Product cost controlling -Cost object controlling

 -Product cost by order - period ending closing -single functions- Variances

-Individual processing (Tr code is KKS2)

Give the order no.60003225

Select execute button
Select back arrow

Deselect text run check box

Execute

Double click on variance amount

Open one more session for order display (CO03)

Give the order no.60003225

Enter

From the menu select go to cost analysis

Calculation of work in process (KKAX)

Path :Upto single functions same path -Work in Progress -Individual processing-Calculate

Work in process for Dec

Production for Dec

To calculate WIP once again work in process will be reserved and variances will be settled to accounts

Give the order no.:   60003225

WIP to Period:   9

Fiscal year:   2008

Result analysis version:   0

Deselect text run check box

 Execute

Settlement of work in process to accounts :KO88

Give the order no.:   60003225

Settlement period:   9

Fiscal year:   2008

Deselect test run check box

Select check transaction date check box

 Execute

Select details list button

Select accounting documents button

Select accounting document no.

                                                                                    GBB   AUA

300200           INC/DEC in stocks FG 853 BILFG1         BIL2

40020            1Production order diff 853 period

300201          INC/DEC in stock WIP 3713 P & L debit

200123          work in process 3713 -Balance sheet credit