Product Costing POC(for Training)
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Download Product Costing POC(for Training)...
Description
Proof of Concept
Proof of Concept Execution Guide
Product Cost Planning & Actual Costing
Proof of Concept
Table of Contents 1. Product Cost Planning – Execution Guide - Proof Of Concept....................4 1.1.
Production of Raw Brine – Essentials for Planning Cost...............................4
2. POC - Organisation Structure ..................................................................5 3.
Creation of Master Records for Production.............................................6
3.1. Creation of Raw Material Masters...............................................................6 3.2. Creation of Finished Good Material Master................................................12 3.3. Creation of Bill of Material ......................................................................15 3.4. Creation of Work Centers........................................................................17 3.5. Creation of Routing.................................................................................18 4. Product Cost Planning-Determining Planned cost per unit .....................21 4.1. Planning Cost Element wise data in Cost Centers. .....................................21 4.2. Viewing Cost Centre Report ....................................................................23 4.3. Planning of activities at Production cost centers.........................................25 4.4. Planning Output of Service Department Activities......................................27 4.5. Calculation of Planned Activity Prices of Production & service Cost Centers & Validation of calculated results............................................................30 4.6. Planning consumption of ‘Service Cost Centers’ Activity output’ by Production Cost Centers ....................................................................................37 4.7. Execution of Plan Reconciliation ..............................................................40 4.8. Execution of Plan Distribution Cycle..........................................................48 4.9.
Entering Statistical Key Figures for Plan Assessment Cycle........................50
4.10. Execution of Plan Assessment Cycle.......................................................52 4.11. Updating Planned RM/PM purchase prices in Material Master ....................54 4.12. Running & saving of Cost Estimate.........................................................57 4.13. Marking & Releasing of Standard Cost Estimate.......................................61 5. Product Costing- Determining Actual cost per unit .................................66 5.1 Purchase of Raw Material..........................................................................66 5.2 Goods Receipt ........................................................................................68 5.3 Creation of Production Order.....................................................................70 5.4 Releasing, Scheduling & Costing the Production Order................................73 5.5 Goods Issue to Production Order...............................................................78 5.6 Confirmation of Quantity & Activity for Operations ......................................80
Product Costing
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5.7 Goods Receipt of Finished Goods against Production Order..........................84 5.8 Creation of Sales Order............................................................................87 5.9 Delivery of Finished Goods .......................................................................89 5.10 Picking of goods & Posting of Goods Issue................................................91 5.11
Billing .................................................................................................93
6. Glossary.................................................................................................94
Product Costing
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1. Product Cost Planning – Execution Guide Proof Of Concept 1.1.
Production of Raw Brine – Essentials for Planning Cost.
Raw Materials Required 1. Raw Salt 2. Sea Water
Operations
Departments Performing Operations (Production Cost Centers)
1. Dissolving
------
Dissolver
2. Refining
------
Refinery
Support Departments (Service Cost Centers) 1. Accounts, 2. Canteen, 3. Facilities, 4. Security.
Expected Output in POC for Planned Cost of Raw Brine in Rs./ KG Name Raw Materials Dissolver Production OHS Refinery Production OHS Service CC Cost Total Cost of Production
Product Costing
Total Cost 140.00 26.80 52.71 15.86 235.37
Fixed 0.00 26.80 52.71 15.86 95.37
Variable 140.00 0.00 0.00 0.00 140.00
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2.
POC - Organisation Structure
The following picture depicts the organization structure used for POC.
Client
Company
218
Controlling Area
Distribution Channels
Divisions
Sales Office
Storage Location
Product Costing
TCL
Tata Chemicals Ltd (TCL)
Company Code
Sales Organization
Tata Chemicals
Purchase Organization
Plant
Sales Org TCL
Purchase Org TCLP
Plant SA
Distribution Channel TC
Division TC
Sales Office 0001 Storage Location WIT
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3.
Creation of Master Records for Production
3.1.Creation of Raw Material Masters Use The Parameters for Creating Raw Materials Master are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
MM01 Logistics /Material Management/Material Master/Material/Create(General)/Immediately Or Logistics /Production/Master data /Master/Material/Create(General)/Immediately
Field Name Industry Sector
Values Chemical Industry
Material Type
Raw material
Plant
SA(number)
Storage Location
MIT(number)
Product Costing
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Product Costing
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Enter
Press Enter Field Name Views
Product Costing
Values Basic Data 1, Basic Data2, Purchasing, MRP1, MRP2, MRP3, Accounting 1, Accounting 2, Cost estimate1, Costing 2,
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Product Costing
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Field Name
Values
Values
Raw Salt
Sea Water
KG
L
SPI1
SP11
KP
KP
Trans Grp
0006
0006
Loading Grp
0003
0003
MRP Type
PD
PD
MRP Controller
001
001
EX(Lot For Lot Order Quantity)
EX(Lot For Lot Order Quantity)
000
000
KP (no Check)
KP (no Check)
N
N
Name Basic Unit Measure Material Group Tab Sales: general/plant Availability Check
Tab MRP1
Lot Size
TAB MRP 2 Sched Margin Key TAB MRP 3 Availability Check Tab Forecasting Forecast Model Product Costing
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Product Costing
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Field Name
Values
Values
3000
3000
1
1
V(moving Average Price)
V(moving Average Price)
With Qty Structure
Check
Check
Material origin
Check
Check
Tab Accounting 1 Valuation class Price Unit Price Control Tab Cost Estimate 1
3.2.Creation of Finished Good Material Master. Use The Parameters for Creating Finished Goods are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code IMG Menu
MM01 Logistics /Material Management/Material Master/Material/Create(General)/Immediately Or Logistics /Production/Master data /Master/Material/Create(General)/Immediately
Product Costing
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Field Name Industry Sector Material Type
Values Chemical Industry Finished goods
Plant
SA(number)
Storage Location
MIT(number)
Product Costing
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Field Name Material Name Basic Unit Measure Material Group
Values 123 Raw Brine Kg SPI1
Tab Accounting 1 Valuation class
7920 (Finished Goods)
Price Unit Price Control
1 S(Standard Price)
Note: For all other views, enter the details as given in 3.1.1 above.
Product Costing
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3.3.Creation of Bill of Material Use The Parameters for Creation of BOM are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
CS01 Logistics/production/Master data/Bill of Material/Material BOM /Create
Field Name
Values
Material No
123(Purified Brine)
Plant BOM usage
SA(Soda Ash) 1( Production)
Press Enter.
Product Costing
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Field Name
Values
Values
Item Category
L(Stock Item)
L(Stock Item)
Component
116(Raw salt)
120(Sea Water)
1
2
QTY
Go to Menu-Header and enter the base quantity (Quantity to which all component quantities in a BOM relate.) Field Name Base Quantity
Values 1
Kg
Save the BOM created.
Product Costing
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3.4.Creation of Work Centers Use The Parameters for creation of Work Center are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
Product Costing
CR01 Logistics/production/Master data/Work Centers/Work Center/Create
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Field Name
Values
Values
Work Center
DISSOLVER
Refinery
001(Machine )
001(Machine )
001
001
001(Only routings)
001(Only routings)
SAP1
SAP1
Work Center Category Person Responsible Usage Standard Value Key
3.5.Creation of Routing Use The Parameters for Creation of routing for FG 123 (Purified Brine) are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
CA01 Logistics/Production/Master data/Routings/Routings/Standard Routings/Create
Field Name
Values
Material No
123
Plant
SA
Press Enter.
Product Costing
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Assign the Operations in Routing as per the details given below:
Field Name
Values
Values
Work Center
DISSOLVER
REFINERY
Control Key
PP01
PP01
Base Qty
10
10
Unit
Kg
Kg
Machine (ACT1)
10
-
Labour (ACT2)
-
40
Unit
H
H
Product Costing
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Product Costing
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4. Product Cost cost per unit
4.1.
Planning-Determining
Planned
Planning Cost Element wise data in Cost Centers.
Use The Parameters for Planning Cost Element wise data in Cost Centers are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
KP06 Accounting/Controlling/Cost Center Accounting /Planning/Cost & Activity Inputs/Change
Field Name
Values
Layout
1-101
Plan Version
0 (Zero)
From & to Periods
1 to 12
Year
2005
Cost Center (from – to)
*
Activity Type (from - to)
*
Cost Element (from – to)
*
Entry
Free (not Form based)
Click on the ‘Overview’ Screen Icon (Top Left of the screen)
Product Costing
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Entries are to be made as per layouts given below for each cost center.
To go to next Dept (i.e. Cost Center) use Black Down Arrow Icon (Third from Top Left).
Product Costing
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4.2.
Viewing Cost Centre Report
The data prepared on excel as shown below needs to be checked with SAP Report
Cost Center Group ===> Cost Center ===> CE
Cost Ele. Descrpn
430000 453000 416300 416400
Salary Maintenance Water Gas TOTAL Own Cost
Transaction Code SAP EASY Access
Production DISSO LVER
REFINA RY
5000 300 200 1000
6500
Service SEC UR
FACILI TIES
100
ACTTS
CANT
8000 900 1500 2000
3000
2000 100 200 500
500
12400
3100
2800
500
100
25
18600 1300 2025 3500 0
125
25425
S_ALR_87013611 Accounting/Controlling /Cost Center Accounting /Information System/ Reports for Cost Center Accounting/Plan Actual Comparison/Cost Centers Actual Plan Variance
Field Name
Values
Controlling Area
TCL
Fiscal Year
2005
From & To Periods
1 to 12
Plan Version
0
Cost Center Group
Can be given if required
Cost Element Group
Can be given if required
Execute.
Product Costing
Total
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Product Costing
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4.3.
Planning of activities at Production cost centers.
Use The Parameters for Planning of activities (measurable Output) of Production Cost Centers are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
KP26 Accounting/Controlling/Cost Center Accounting /Planning/ Activity Output Prices /Change
Field Name
Values
Version
0
From Period
1
To Period
12
Fiscal Year
2005
Cost Center
*
Activity type Entry
* Free
To go to next Dept (i.e. Cost Center) use Black Down Arrow Icon (Third from Top Left). Enter the following data:
Product Costing
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Cost Centre /Field Name
Values
Dissolver/ Plan Activity
Under Act1
300
Refinery/ Plan Activity
Under Act2
250
Product Costing
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4.4.
Planning Output of Service Department Activities.
Use The parameters for entering ‘Plan Output Values’ of Service Departments Activities are defined here. (Note: Before starting this activity, it is necessary to complete the Cost Element wise Planning for the relevant service cost centers thru transaction KP06 as explained in 3.1 above.) Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
KP26 Accounting/Controlling/Cost Center Accounting /Planning/ Activity Output/Prices/ Change
Field Name
Values
Version
0
From Period
1
To Period
12
Fiscal Year
2005
Cost Center or CC Group
* Can be given as required
Activity type or Activity Type Group Entry
Product Costing
* Can be given as required Free
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To go to next Dept (i.e. Cost Center) use Black Down Arrow Icon (Third from Top Left). Once you arrive at the required production cost Center update as below, Field Name
Values
Cost centre
Facilities
Activity Type
Cups
Plan Activity
125
Product Costing
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Product Costing
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4.5.
Calculation of Planned Activity Prices of Production & service Cost Centers & Validation of calculated results
Use The Parameters for Calculation of Planned Activity Prices of Production & Service Cost Centers are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
Field Name All Cost Centers
KSPI Accounting/Controlling/Cost Center Accounting /Planning/ Allocations/ Price Calculation
Values Production & Service CC group (To be done separately for each)
Version Period Fiscal Year Test run
Product Costing
0 1 to 12 2005 First in Test Run and then post
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a) Production Cost Centers
Product Costing
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Go back. The system will ask whether to post these prices. If clicked on Yes, it will post the prices (even though the report is executed in Test Run).
Product Costing
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Similarly, execute the planned price calculation for Service cost Centers. b) Service cost Centers
Product Costing
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Product Costing
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The Planned prices posted as above should be checked and validated through transaction KP26. The relevant screen Shots are given below:
Product Costing
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Product Costing
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4.6.
Planning consumption of ‘Service Cost Centers’ Activity output’ by Production Cost Centers
Use The parameters for Planning Consumption of Service Cost Centers’ Activity Output in Production Cost Centers are explained here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
KP06 Accounting/Controlling/Cost Center Accounting /Planning/Cost & Activity inputs/ Change
After you press ‘Enter’, system shows, by default, the first layout i.e. 1-101. Click on Next Layout Icon to select the layout 1-102. Field Name
Values
Layout
1-102
Plan Version
0 (Zero)
From & to Periods
1 to 12
Year
2005
Cost Center (from – to)
* Prod CC Group can be selected
Activity Type (from - to)
* As required
Cost Element (from – to)
*
Entry
Free (not Form based)
Click on Overview Screen Icon (on Top Left corner of the screen)
Product Costing
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Enter the following values Receiver Cost Centre
Sender cost centre
Dissolver
Facilities
100
Refinery
Facilities
50
Product Costing
Planned Fixed consumption
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Product Costing
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4.7.
Execution of Plan Reconciliation
Use Plan Reconciliation is executed to identify and reconcile mismatches, if any, between Sender CC’s Output and Receiver CC’s Input. The procedure for executing Plan reconciliation is explained here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
KPSI Accounting/Controlling/Cost Center Accounting /Planning/Planning Aids / Plan Reconciliation
Field Name
Values
All Cost Centers
Select
Plan Version
0 (Zero)
From & to Periods
1 to 12
Year
2005
Test Run
Do in Test Run First
Details List
Select.
Product Costing
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Execute.
Product Costing
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If the Results are correct, then Save it. (System posts the data even if it is executed in Test Run)
Once these results are posted, system will automatically post the Plan Cost of Service Cost Centers to Production Cost Center based on the Activity Consumption planned by them. See the Cost Center Report Screen Shots given below.
Product Costing
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1. For all Cost Centers
Product Costing
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2. For Service Cost Center (i.e. Sender)
Product Costing
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3. For Production Cost Centers (Receivers)
Product Costing
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NOTE: If there are any differences in Plan Data between the Output of Service Cost Centers & consumption of Production Cost Centers, it will be reflected in the Plan Reconciliation Report. If the data is posted after execution of KPSI, system will automatically adjust the values of output of Service Cost so as to match with consumption by production cost centers. Screen Shots relevant for automatic matching of Sender & Receiver Activity Quantities are given below
Product Costing
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Product Costing
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4.8.
Execution of Plan Distribution Cycle Use The procedure for execution of plan Distribution Cycle is explained here. After execution of distribution cycle, the sender cost centers’ cost will be allocated to receivers cost centers, based on the criteria defined in the cycle. Ideally, the entire cost of sender cost centre should be distributed to the receivers. In distribution, sender cost center’s cost is allocated to the receivers in the respective cost elements. Hence, Secondary cost element is not required for distribution. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
KSVB Accounting/Controlling/Cost Center Accounting /Planning/ Allocations/Distribution.
First execute in Test Run, analyze the results & then execute to post
Product Costing
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First execute in Test Run, analyze the results & then execute to post .Click on the number in sender/receiver column to see the details of distribution. For checking whether entire cost of Service CC has been distributed to other cost centers, go to the cost centre report (S_ALR_87013611).
Product Costing
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4.9.
Entering Statistical Key Figures for Plan Assessment Cycle Use The procedure for entering SKF for executing Plan Assessment Cycle is explained here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
KP46 Accounting/Controlling/Cost Center Accounting /Planning/ Statistical Key Figures/ Change
Give Parameters as per screen shots given below.
Product Costing
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Product Costing
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4.10.
Execution of Plan Assessment Cycle
Use The procedure for execution of plan Assessment Cycle is explained here. After execution of assessment cycle, the sender cost centers cost will be allocated to receivers cost centers based on the criteria defined in the cycle. Ideally, the entire cost of sender cost centre should be distributed to the receivers. In assessment, it is allocated through a single line item (secondary Cost element) in the receiver cost centre. Procedure Access the activity using one of the following navigation options: Transaction Code SAP EASY Access
KSUB Accounting/Controlling/Cost Center Accounting /Planning/ Allocations/Assessment
Enter the parameters as per the screen shot given below
First execute in Test Run, analyze the results & then execute in production run to post .Click on the number in sender/receiver column to see the details of assessment.
Product Costing
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The result of the assessment cycle is as shown in the screen shot below. For verification of the resultant output, go to the cost centre report (S_ALR_87013611).
Product Costing
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4.11.
Updating Planned RM/PM purchase prices in Material Master Use The Parameters for updating the planned RM/PM purchase prices in Material Master are defined here. Prerequisites 1. For all the RM/PM codes, planned purchase prices should be available from Purchase Department. These planned prices should be with reference to ‘price unit’ in ‘Accounting 1 view’ of the Material master of the respective material. 2. Before updating the planned price field, it is necessary to know beforehand the costing variant which will be used for annual planning and the planned price field (in RM/PM Material Master) to which it is linked through valuation variant. In our example, we have used Costing Variant ZPC5 in which pricing strategy for materials as per valuation variant (TCL _New Valuation Variant) is ‘Planned Price3’ or ‘Moving average Price’. The relevant screen shots are given below:
Click on Valuation variant and view the pricing strategy for materials.
Product Costing
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Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
MM02 Logistics/Materials management/Material Master /Material/Change
Go to Costing 2 View of the material master and put the price in the planned price 3 field. Date should be first date of the year for which plan is to be prepared.
Product Costing
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Save it & do the same for other raw materials. When the number of RM/PM is large, in that case we can use LSMW for mass upload. However, LSMW needs to be created.
Product Costing
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4.12.
Running & saving of Cost Estimate
Use The Parameters for running & saving the Cost estimate for the material are defined here. The cost estimate determines what costs go into the standard price for the material. Only those cost components, that are flagged as relevant for stock valuation, are included in the standard price. A material cost estimate is used to calculate the standard price which will be updated in the material master record. Procedure Access the activity using one of the following navigation options: Transaction Code SAP EASY Access
Field Name
CK11n Logistics/Production-Process/Product Cost planning/ Material Costing/Cost Estimate with Qty Structure/Create
Values
FG Material No.
123
Plant
SA
Costing Variant Costing Version
Product Costing
ZPC5(as mentioned before) 1
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Product Costing
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Give the Costing dates, Qty Structure date & Valuation Date & press enter
Product Costing
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Check the Standard Cost estimate results and verify it with the desired result. Then Save it by clicking on the save icon. The cost estimate must be executed with a costing variant (made for the specific purpose like Annual Planning, Inventory Valuation, and Current Costing etc.) and saved. Once it is released thru transaction CK24, it will be updated in the Master record of the FG/ SFG. Transaction CK24 is explained below.
Product Costing
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4.13.
Marking & Releasing of Standard Cost Estimate Use The Parameters for Marking & release of the standard Cost estimate for the material are explained here. Once the standard cost estimate is released, the standard price will appear in the ‘Accounting 1’ & ‘Costing 2’ view of Material Master. To view the cost component structure, double click on the ‘current period’ field. Procedure Access the activity using one of the following navigation options: Transaction Code SAP EASY Access
CK24 Logistics/Production-Process/Product Cost planning/ Material Costing/Price Update
First click on marking allowance to allow release of standard cost for the current period. This is to be done only once at the beginning of the period.
Product Costing
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Give the costing variant & version
Product Costing
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Save and go back to the main screen.
Give the material number and execute in test run first. Check it & mark. It will show the future price calculated.
Now go back and click on release. Following screen shot shows the released standard cost estimate.
Product Costing
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Check and save it. Cross check the updated price in the material master as shown in the screen shot below.
Product Costing
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(Note: Please consider the values shown in the screen shot as only the reference values. Do not cross check the same with the desired output. The purpose is to show the flow of activities.)
Product Costing
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5. Product Costing- Determining Actual cost per unit
5.1 Purchase of Raw Material Use The Parameters for Purchase of Raw Materials are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP EASY Access
Field Name Vendor Purchasing Org Purc. Group
ME21N Logistics/ Materials Management / Purchasing / Purchase Order / Create / Vendor /Supplying Plant Known.
Values 200000 TCLP SPI (SPI Purchase Group)
Company Code
TCL
Material
116
PO Quantity
10 KG
Net Price
18
Material
120
PO Quantity
5L
Plant
SA
Net Price Delivery Date
Product Costing
2 30.08.2005
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Press Enter. Under Material Data Tab:
Uncheck nfo Update field.
Now Confirm the Net Price entered is same as displayed, else re-enter. Press Enter Save
Product Costing
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5.2
Goods Receipt
Use The Parameters for Goods Receipt of Raw Materials are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code
MIGO_GR (MIGO)
SAP EASY Access
Logistics/ Materials Management / Purchasing / Inventory Management / Goods Movement/ Goods Receipt / Purchase Order / GR for Purchase Order.
Field Name
Values
Purchase Order
4500000040
Posting & Document Date
25.11.2005
Press enter
Field Name Stor Loc
Values MIT
Check Item OK check box Press Enter Save
Product Costing
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Product Costing
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5.3
Creation of Production Order
Use The Parameters for Creation of Production Order are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
Product Costing
CO01 Logistics/Production/Production Control/order/create/with material
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Product Costing
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Field Name Material Production Plant
Values 123(Raw Brine) SA
Order Type
PP01 (Standard Production Order)
Field Name
Values
Total qty Finish Date
Product Costing
10 07.10.2005
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5.4
Releasing, Scheduling & Costing the Production Order
Release the Order
Product Costing
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Scheduling
Carry out Costing
Product Costing
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Product Costing
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Check the planned cost calculated as follows
Product Costing
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Check all the tabs on the main screen of the production order & save.
Product Costing
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5.5
Goods Issue to Production Order
Use The Parameters for Goods Issue to Production Order are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
MB1A Logistics/Production/Production Control/ Goods Movement/ MB1A Goods Issue
Field Name Document Date
Values xx.xx.2005
Posting Date
xx.xx.2005
Movement Type
261
Plant
SA(number)
Enter the details as given below:
Product Costing
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Click on the overview to check the issues made
Product Costing
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Save the document.
5.6
Confirmation of Quantity & Activity for Operations
Use The Parameters for Confirmation of Quantity & Activity for operations to Production Order are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
Product Costing
CO11N Logistics/Production/Production Control/ Confirmation / Enter/ For Operation / Time Ticket
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Transaction Code
Field Name Order Ope/Acty Confirm type Quantity Confirmation
CO11N
Values
Values
1000045
1000045
0030(Dissolver)
0040(Refinery)
Final confirmation
Final confirmation
10(Order qty)
10(Order qty)
Activity Confirmation Machine Labor
Product Costing
2
H 1H
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Product Costing
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Check the actual cost debited to the production order in the Cost Report.
Product Costing
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5.7
Goods Receipt of Finished Goods against Production Order
Use The Parameters for Creation of Production Order
is
defined here.
Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
MB31 Logistics/Materials Mgt/Inventory mgt/Goods Receipt/For order
Enter the details as given below
Product Costing
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Save the document.
Product Costing
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Go to the Production order cost report and see the cost analysis
Product Costing
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5.8 Creation of Sales Order Use The Parameters for Creation of Sales Order are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
VA01 Logistics/Sales & Distribution/Sales/Order/Create
Enter the details as given below
Field Name
Values
Sold to party
48
PO number & Date
xxx / xx.xx.2005
Payment terms
As required
Item
0010
Product Costing
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Material
123 (Material Code)
Order Qty /UOM
As required
Item Category
TAN
Plant /Storage Location
As required
Press Enter. Select the Line item & go to Item conditions for Pricing
Enter the Pricing conditions as per example shown below
Product Costing
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Save the sales order & note the order number.
5.9
Delivery of Finished Goods
Use
Product Costing
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The Parameters for Creation of Sales Order are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
VL01N Logistics/Sales & Distribution/Shipping & transportation/Outbound delivery/Create/Single document/VL01n
Enter the details as shown in the example below
Product Costing
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Proof of Concept
Save & note the delivery number.
5.10
Picking of goods & Posting of Goods Issue
Use The Parameters for ‘Picking of goods’ & ‘Post Good issue’ are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
VL02N Logistics/Sales & Distribution/Shipping & transportation/Outbound delivery/Change/VL02N
Put the delivery number and press enter Go to the Tab for Picking & enter the quantity to be picked
Product Costing
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Proof of Concept
Click on Post goods issue. The message will be displayed for Outbound Delivery Saved.
Product Costing
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Proof of Concept
5.11 Billing Use The Parameters for Creation of Billing Document (i.e. Invoice) are defined here. Procedure Access the activity using one of the following navigation options:
Transaction Code SAP Easy Access
VF01 Logistics/Logistics Execution /Outbound Process /Goods Issue for Outbound delivery/Billing/ Billing Document / Create
Enter the Details as per screen shot below.
Save the document & check the messages. If any errors are there, correct the same & then Save. It will generate the Billing Document & also post the same in FI (i.e. release of invoice to accounts). Check the Accounting Document Posted.
Product Costing
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Proof of Concept
6.
Glossary
Sr.No 1
Terminology Material Master
Meaning / Concept A data record containing all the basic information required to manage a material. This data is sorted according to various criteria including data of a descriptive nature (such as size, dimension and weight) and data with a control function (such as material type and industry sector). In addition to this data, which can be directly maintained by the user, it also contains data that is automatically updated by the system (such as stock levels).
2
BOM
It is a complete & formally structured list of components of a product.
3
Cost Centre (CC)
An organizational unit within a controlling area that represents a defined location of cost incurrence.
4
Activity Type
A unit in a controlling area that classifies the activities performed in a cost center
5
Primary cost Element
Replica of GL Codes in Co. It is a Bridge between FI & CO.
6
Secondary Cost Element
It exists only in CO & is used for transferring costs from one CO Object to other.
7
Distribution
A process used for transferring cost from one CC to another in the same cost element.
8
Assessment
A process used for transferring cost from once CC to another by using a Secondary Cost Element.
7
Routing
It defines one or more sequences of operations for the production of a material
Product Costing
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