Actual Costing ML

April 5, 2017 | Author: meghatanwar18 | Category: N/A
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Description

Actual Costing / Material Ledger

Solution Management ERP Financials

SAP AG

Agenda

Part A Part B Part C Part D Part E

– Inventory Accounting with Material Ledger – Alternative Valuation Run – Distribution of Usage Variances – Revaluation of Consumption at Actual Costs – Revaluation of Cost of Goods Sold at Actual Costs

© SAP AG 2009. All rights reserved. / Page 2

Inventory Accounting with Material Ledger

Legal Disclaimer

This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.

Agenda

1. 2. 3. 4.

Divider headline Divider headline Divider headline Divider headline

© SAP AG 2009. All rights reserved. / Page 5

Agenda

1. Divider headline 1.1. Subdivider headline 1.2. Subdivider headline

2. Divider headline 2.1. Subdivider headline 2.2. Subdivider headline

3. Divider headline 3.1. Subdivider headline 3.2. Subdivider headline

4. Divider headline 4.1. Subdivider headline 4.2. Subdivider headline

© SAP AG 2009. All rights reserved. / Page 6

Actual Costing Multi-level Periodic Material Prices Actual Costing

Transparency

Multi-level MultiPeriodic Material Prices

of Value Chain

Material Ledger Inventory Valuation

Parallel Currencies

Parallel Valuation

Valuation with Historic Exchange Rates

Transfer prices

Group

Legal Profit Center

Mutli-Level Actual Costing

Production

Multi-Level Actual Costing allows MultiInventory valuation with actual periodic material price Roll--up of price differences Roll

Production

External Procurement

from raw materials to finished materials

External Procurement

Integration of Actual Costing

Integration of Multi--Level Multi

Actual Costing Profitability Analysis Contribution Margins

Product Cost Planning Cost Center Accounting Actual Prices of Activities and Business Processes

Standard Prices & Cost Component Split

Actual Costing and Profitability Analysis

Actual values in Profitability Analysis Contribution Margin Accounting Cost of sales split into cost components Plan/Actual Variance analysis Sales Quantity: Revenues:: Revenues

1,000 pc 10,000 US$ Plan

Actual

Var. %

Var. Abs.

Raw Materials Labor variable Machine variable Logistic Processes Material Overheads

50,000 4,000 4,000 10,000 5,000

45,000 5,000 4,500 7,000 5,500

5,000 -1,000 - 500 3,000 - 500

10 % - 25 % - 13 % 30% - 10 %

Contribution Margin I

27,000

33,000

6,000

22 %

Labor fix Machine fix

10,000 7,000

10,000 7,000

0 0

0% 0%

Contribution Margin II

10,000

16,000

6,000

60 %

Actual Costing and Cost Center Accounting /ABC Direct settlement to materials: Actual activity prices

Business Processes

Plan

Actual ./. Plan

Actual costs of business processes

Production

Standard Price

Settlement

Cost Center Activities

Actual ./. Plan

Material

Actual Costing and Product Cost Planning Product Cost Planning PP Master Data

Routing

BOM

Actual Costing with Cost Components Same cost component structure as in planning No Cost Estimates necessary for Actual Costing

Multi-Level MultiActual Costing Material Movements

Actual Quantity Structure

Optional: Primary cost component split

Cost Estimate

Price Determination

Standard Price with

Periodic Unit Price with Mat Proc Lab OH

Mat Proc Lab OH Cost Component Split

Variance Analysis

Cost Component Split

Actual Cost Component Split

The Actual Cost Component Split is a strategic tool for Sourcing Decisions based on procurement alternatives Analyzing the actual value added in each production level Category Beginning Inventory Receipts Purchase Order Trading Inc Best Price Ltd Production Prod. Version1 ... Cumulative Inventory Consumption Ending Inventory

Qty

Value

100

8,400

900 300 200 100 500 500 100 1,000 600 400

72,600 26,000 18,000 8,000 38,500 38,500 8,100 81,000 48,600 32,400

Material Labor Machine Process OH 4,500

1,500

1,150

700

50,000 8,500 26,000 18,000 8,000 20,000 7,000 20,000 7,000 4,000 1,500 54,500 10,000 32,700 6,000 21,800 4,000

6,200

4,800

5,000 5,000 1,200 7,350 4,410 2,940

4,000 4,000 800 5,500 3,300 2,200

Price

550

84,00

3,100

81,00 87,00

2,500 2,500 600 3,650 2,190 1,460

90,00 80,00 77,00 77,00 81,00 81,00 81,00 81,00

Material Price Analysis

Price Analysis for selected Materials Huge number of monetary and quantity key-figures Multiple sorting and summarization functions Easy-to-customize to fit personal needs Direct drill-down tools to detailed views and documents Easy error finding Material PC 500 Pentium PC 600 Pentium PC 330 Pentium Monitor 17‘ Digital Camera xms Digital Camera xms PC Pentium 200

... Total

Plant London London Frankfurt London Frankfurt London Frankfurt

... ...

Std.Price Act. Price Var.abs Var. % 2,500 2,900 400 16 % 3,500 3,920 420 12 % 1,500 1,635 135 9% 400 432 32 8% 750 805 55 7,5 % 950 1020 70 7,4 % 800 855 55 7%

... ...

... ...

... ...

... ...

Material Price Analysis (2)

Price analysis for single Materials Price history Procurement controlling Plausibility checks, and more Category Quantity PrelValue PriceDif Price Beginning Inventory 100 1,000 160 11,60 Receipts 900 9,000 2,340 12,60 Purchase Order 300 3,000 1,500 15,00 Trading Inc 200 2,000 1,200 16,00 Best Price Ltd 100 1,000 300 13,00 Production 500 5,000 500 11,00 Prod. Version1 500 5,000 500 11,00 ... 100 1,000 340 13,40 Cumulative Inventory 1,000 10,000 2,500 12,50 Consumption 600 6,000 1,500 12,50 Ending Inventory 400 4,000 1,000 12,50

Actual Costing in the Workplace

Cost Accounting Manager Cost Accountant Inventory Accountant

Inventory Cost Estimator Accountant Sales Business Analyst Business Unit Analyst

Inventory Accountant: Areas of Responsability Procurement Planning

Stock Actual Costing Balance Sheet Valuation Inventory Counting

Actual Costing in the Workplace

Actual periodic Material Price Multi-Level Roll MultiRoll--up of Price Variances Integration with Profitability Analysis Integration with ABC and Cost Center Accounting Integration with Product Cost Planning Represented in Workplace Inventory Accountant

Agenda

Part A Part B Part C Part D Part E

– Inventory Accounting with Material Ledger – Alternative Valuation Run – Distribution of Usage Variances – Revaluation of Consumption at Actual Costs – Revaluation of Cost of Goods Sold at Actual Costs

© SAP AG 2009. All rights reserved. / Page 19

Alternative Valuation Run

New Development in R/3 Enterprise in Actual Costing

Alternative Valuation Run (AVR) Concept

Reuses data collected in Periodic Actual Costing Influencing Factors: Material prices based on longer time periods :

Cumulation

Parameters can be varied to calculate alternative results for actual material costs:

Alternative valuation

Multiple (alternative) runs are possible for each period and material (999)

Advantages of using the AVR

Cumulation: Smooth out seasonal or random changes Full absorbance of cost center costs although output is zero in some months Decrease influence of work in process, beginning, and ending inventory Get an overview of how prices influence processes over a whole business year

Alternative Valuation: Support alternative valuation rules for stocks from IAS, US-GAAP, HGB, and so on. Use activity prices that differ from the operational activity prices

Sequential Cumulations

1

2

3

4

5

6

7

8

9 10 11 12

Periods

Cumulation: Quarters

Fiscal Years

Year-To-Date Cumulation (YTD)

1

2

3

4

5

6

7

8

9 10 11 12

Periods

Cumulation Runs

Cumulation of Periods

Instead of actual costs only being based on a single period (month), all price relevant transactions from a multitude of periods are calculated together. This process uses the: Cumulated actual quantity structure Cumulated single level differences from production or procurement Cumulated activity prices Beginning inventory from the first period Ending inventory from the last period

Cumulation Example follows...

Average of Periods!

Example: Average from Periods Product A

Product B

Product A

Product B

$20

$20

$11

$11

$900

$100

90KG

Period 01 Period 1 + 2

$10

10KG

$1000

$90

10KG

Product B

$19.10

$11.90

$910

100 KG

$100

Period 02

Product A

$190

100 KG

$1100

90KG

Example: Cumulation Product A

Product B

Product A

Product B

$20

$20

$11

$11

$900

90KG

Period 01 Cumulated Calculation for Period 1 + 2

$100

$10

10KG

$1000

$90

10KG

Product B

$15.50

$15.50

$550

100 KG

$100

Period 02

Product A

$550

100 KG

$ 1100

90KG

Alternative Valuation

Valuations can vary by run For materials: Different split between valuation of ending inventory and consumption Change ending inventory valuation and CCS using a BADI (ENDING_INVENTORY) Use an external price for ending inventory, for example, FIFO price determined in balance sheet valuation (Table CKMLPR_EB) Manual change of material price and cost component split Manipulate cumulated data using a BADI (CKMLAVR_SIM)

For activities: Different types of activity prices Planned activity prices (CO version > 0) Periodic actual activity prices (CO version = 0) Cumulative actual activity prices

Run Definition

A run consists of Definition: A collection of parameters Plants taking part Beginning and ending period Settings A name and a long text

Steps to complete all of the actual costing processes Results Reporting and analysis Postings: FI and cost centers Use in CO-PA

Definition: Period Data

Definition: Plant Assignment

Definition: Settings

Run processing Steps

A run consists of Definition: A collection of parameters Plants taking part Beginning and ending period Settings A name and a long text

Steps to complete all of the actual costing processes Results Reporting and analysis Postings: FI and cost centers Use in CO-PA

Processing Steps

Process Step: Determine Actual Prices

Without AVR: The determination of actual activity prices in Cost Center Accounting (Transaction KSII) allows you to either calculate and store periodic or cumulated activity prices. With Step „Determine Actual Prices“ in the AVR: Cumulated actual activity prices can be stored additionally in their own version. Actual data is used from version 0, but the results are written to an additional version. Aim: Periodic ML uses periodic activity prices, AVR uses cumulated activity prices

Process Step: Posting

The Determine Delta Postings and Post Closing steps are optional steps. They are only displayed if the run is defined as a ‚posting run‘ Postings can be previewed and controlled in the results part of the cockpit. An explanation of the posting logic follows...

Preview Delta Postings

Posting entries can be previewed using the filter hierarchy

Run Results I

A run consists of Definition: A collection of parameters Plants taking part Beginning and ending period Settings A name and a long text

Steps to complete all of the actual costing processes Results Reporting and analysis Postings: FI and cost centers Use in CO-PA

Results: Reporting

AVR runs are stored separately from periodic data. The following reporting and analysis tools can be used for AVR in the same way as for Periodic ML: Price analysis on material level (CKM3) Valuated quantity structure Data extraction to BW Value flow monitor CKMLAVRPERD allows you to compare data from multiple periods with the AVR data at procurement alternative level

Reporting: Price Analysis at Material Level (CKM3)

Reporting: Valuated Quantity Structure (Multilevel)

Run Results II

A run consists of Definition: A collection of parameters Plants taking part Beginning and ending period Settings A name and a long text

Steps to complete all of the actual costing processes Results Reporting and analysis Postings: FI and cost centers Use in CO-PA

Results: Postings

Postings from AVR may include: Delta stock account adjustments Cost center credits from actual activity prices Cost of single level consumption

Posting from AVR is optional, not mandatory! SAP recommends posting from periodic actual costing!

With Account Modification, alternative valuations can be posted in parallel to different sets of accounts with Accounting Principle, alternative valuations can be posted in parallel to a Special Ledger

The ‚posting run‘ flag determines if the results can be used for posting or not. This prevents double postings being made to same account from different runs. The flag can only be set once per ending period, plant, and account modification.

Delta Stock Account Postings AVR results are compared, by material, with the current material valuation. The difference is posted to a delta stock account with posting key BSD. The offsetting posting uses key UMD. To keep the operative valuation separate, the BSD account must not equal the BSX account. The posting is automatically reversed in next period in order to allow Year-to-DateCumulations. Per material in AVR:

Example:

BSD = ( stock value AVR) – (stock value material master)

AVR periods 1 – 12, ending stock: 100 pieces, Price $ 1.20

UMD = - BSD

Periodic valuation period 12: 100 pieces, V-Price 1.00 (from periodic revaluation) Posting: BSD 20 UMD 20-

Cost Center Credits from Actual Activity Prices There are three alternatives for crediting cost centers: No crediting of cost center Crediting triggered by periodic material ledger with periodic actual activity prices, not by AVR Crediting triggered by AVR with cumulative actual activity prices Makes sense if, for example, cost centers would not be cleared in some periods due to seasonal fluctuations.

Posting date: Last day of ending period of AVR PRV

Lower level price differences

GBB / AUI

Offsetting posting (crediting cost center activity type in CO)

In case of previous run, for example when using YTD: Previous cost center posting is reversed

Scenarios with Cost Center Postings Customizing Activity update

Rate in AVR Def.

2

Blank

2

Actual Rate

1

Actual Rate + Flag 'credit CC'

Periodic ML Uses periodic actual rates Crediting CC Uses periodic actual rates Crediting CC Activity differences not used

AVR Actual valuation of periods will be recognized in cumulation No credit of CC Determination of cumulated actual activity prices available Pickup of cumulated actual rate differences No credit of CC Determination of cumulated actual activity prices is available Pickup of cumulated actual rate differences CC Credited

Revaluation of Consumption

Single-level consumption can be revaluated periodically, and can also be adjusted to the AVR price

Consumption value from AVR Consumtion quantities are cumulated. Quantity x AVR price = consumption value

Periodic consumption value Posting documents from revaluation of consumption are added together for the range of AVR Periods

AVR delta postings: Consumption value from AVR – periodic consumption value – posted in previous periods by AVR Posting is made in same way as posting in periodic valuation: posting made to original consumption account (and CO object)

Example Posting Closing entry AVR January to September 2000 Posting date 30.09.2000 Credit cost center NSC1 Price Diff. Lower levels Finished Goods Inv. Delta Revaluation Delta Cost of sales Price Diff. ML Posting Date 01.10.2000 Revaluation Delta Finished Goods Inv. Delta

100100 50 5050 50-

GBB AUI PRV BSD UMD COGS PRY

In January to September, 1000 pieces of a semifinished good “FG1” were produced. 1000 hrs of activity “ac1” in cost center “NSC1” were consumed. The preliminary (frozen) price of ac1 was 1 EUR/h. For periods 1 - 9 in 2000, the total costs for NSC1 were 1100 EUR and the total output was 1000 hrs of ac1. Therefore the actual activity price of ac1 is 1.1 EUR/hr At 09.30.2000 the ending stock is 500, another 500 pieces were sold in January to September. No other price differences occurred for FG1.

50 50-

UMD BSD

Closing entry cumulation January to December 2000 Posting date 31.12.2000 Credit cost center NSC1 Price Diff. Lower levels Credit cost center NSC1 Price Diff. Lower levels Finished Goods Inv. Delta Revaluation Delta Cost of sales Price Diff. ML

100 100180180 90 9040 40-

Posting Date 01.01.2001 Revaluation Delta Finished Goods Inv. Delta

90 90-

GBB AUI
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