PRODUCT COSTING. This is used for valuation of inventories i.e. Finished goods and Work in progress

Transcription

1 PRODUCT COSTING This is used for valuation of inventories i.e. Finished goods and Work in progress PP Module MM Module FI Module Product costing CO Module Note: SAP lab :Product costing made easy BPB publication Not covered product costing Crate a cost estimate with quantity structure Cost element with quantity structure At standard cost In the month end we get actual cost How standard cost will be arrived at : Variable will be settled to accounts Sales budget for next month Production budget Material requirement Planning (Make to orders (confirmed orders) (This is same men budget) + And make to stock (expected orders)) Overhead planning = Standard cost Cost sheet for the product BILFG1 Raw materials xx Raw material overheads xx Production costs xx Cost of goods manufactured (COGM) xx Administration Expenses xx Sales & Distribution exp. xx ---- Cost of goods sold (COGS) xx To check with client at what level he wants to value stocks At COGM level or At COGM +Admin level Raw material standard cost For each product we find out materials required For BILFG1 We required BILRM1 BILRM2 MM Module :Material Master Accounting view moving average price BIL RM1 75 BILRM2 125 PP Module: Bill of Material (BOM) To produce BILFG1 what materials are required and how much quantity

2 BILRM1 1Kg BILRM2 1Kg Raw material standard cost =Quantity from BOM (PP)*Rate from Material Master (MM) (1*75)+1*125)=200 Raw material overheads Overheads like freight charges :At the time of receipt it will be added to material At the time of consumption the material cost includes freight also. Overhead like loading and unloading normal amounts change directly to P & L account clients will tell us-how much percentage can be taken on raw material cost (consumption.) 5% of raw material costs Eg: 250*5%=12.5 Production costs: Cost centers in PP Module :Work centers Dept A Dept B Dept C Dept D Dept A Dept B Dept C Dept D Raw material Issue Issue Issue finished product All products need not go through all the Departments Process flow for each product in PP module we call as routing. PP Module: Routing (Process flow) Dept A Dept B Dept D Raw material Issue Issue Finished product Wages Salaries Power Planned cost ===== Planned hours available Machines 100 working for 3 shifts (24 Hours ) No.of days 30 Days 100*30*24=72000 Machine hour rate /72000=10 Rs (Activity type) To Produce BILFG1 Hours required 5Hrs Production cost 10*5=50

3 Production cost : (Hours required in Dept A * Machine hour rate)+(hours required in Dept B* Machine hour rate )+ (Hours required in Dept D * Machine hour rate) Example : Why can t we allocate based on production Production Qty Hrs Req Cost BILFG1 999 Kgs 1 BILFG2 1 Kg If we allocate cost based on production BILFG *999/1000= BILFG *1/1000= ====== If we allocate cost based on hours required BILFG *1/1000 =720 BILFG *999/1000 = ======== ACTIVITY BASED COSTING Co Consultants job: 1. Creation of 2 secondary cost elements (Use Tr.code is KA06) A) RM overhead rate B) Activity allocation Give the cost element Valid from to Give the name and description Cost element category Cost element : Name and description Cost element category :RM Overhead rate : Select 41 overhead rates :Activity allocation :select 43 Interval activity allocation

4 Creation of activity type Machine hour: Path :Accounting Controlling cost Center accounting Master data Activity type- Individual processing create (Transaction code KL01) Activity type Valid from : to Give the Name & Description :Machine hour Activity unit Cost center categories Active type category :select H Allocation cost element : :Select * (All cost center categories) :select 1 (Manual entry, Manual allocation) Creation of cost centers: (Tr.code is KS01) Give the cost center :Dept G Valid from : to Reference cost center :Dept A Controlling area Change the name to Dept G Change the description to cost center :Dept G Person responsible :MrG Other things are common Select save button Cost center :Dept H Reference cost center :Dept A Controlling area Change the name to Dept H Change the description to cost center:dept H Change person responsible to Mr.H

5 Cost center category :select 9( Allocation cost center) Create of cost center group (Tr code is KSH1) Give the cost center group PROD Description Production cost center group Select insert cost center button Select cost center Dept G Define overhead keys: Path :SPRO-Controlling Product cost controlling Product cost planning basic settings for material costing - overheads-define overhead keys Select new entries Overhead key Description 1 Overhead key Define overhead groups Same path Valuation area Overhead group Overhead key Name of overhead group P 1 1 Note: over head group Overhead rate will be given to overhead key Overhead key will be assigned to overhead group Overhead group will be specified in material master

6 Define calculation basis Path :SPRO-Controlling- Product cost controlling Product cost planning-basic setting for material costing Over head costing sheet components Define calculation bases Base :D1 (Text filed) Name :Raw materials Base :D2 Name :Production cost Select D1 double click on details folder Controlling area From cost element : To cost element : RM consumption Select back arrow two times Select base D2 Production cost Double click on details folder Controlling area From cost element : To cost element : Personnel & Manufacturing group From cost element : To cost element : Depreciation a/c From cost element : Activity allocation To cost element :

7 Define percentage overhead rates: Same path Overhead rate :D3 Name Dependency :RM overhead rate :Select D010 Overhead type/overhead key Select D3 Double click on details folder Ignore the warning message press enter Valid from To Controlling area Overhead type Overhead key Percentage BIL Select 2 BIL1 5 (Planned overhead rate) RM key BIL 1 (Actual overhead rate) BIL1 10 Select save button or Ctrl+S Define Credits Same path Credit :D4 Name RM credit key Select :D4 Double click on details folder Controlling area

8 Valid to : Cost element : RM overhead rate Fixed percentage :100% Cost center :Dept H (Allocation cost center) Actual over head rate 10% Credit key D Cost Dept. 1. RM1 Purchase/Receipt (Freight including) Inventory RM local DR To GR/IR clearing RM local Loading & Unloading charges Loading & Unloading charges Dr 7000 Dept H To Bank RM 2 Purchase Inventory RM local DR To GR/IR clearing RM local Loading & Unloading charges for RM 2 Lodging & unloading charges DR 3000 To Bank RM Consumption for production Order 1-RM1 and RM2 RM consumption local DR Order 1 RM Consumption local DR Order 1 To Inventory RM local To Inventories RM local RM consumption for production order 2 RM-1 and RM2 RM consumption local DR Order 2 RM Consumption local DR Order 2 To inventory RM local To Inventory RM local In the month end RM material consumption Lodging & Unloading charges 10000

9 % on consumption 10% actual overhead rate Cost center Dept H (Allocation cost center) Loading & Unloading for RM DR Order DR Loading & Unloading for RM DR Order CR H Value will be zero Order 1 Order2 RM Consumption RM overhead rate (Actual 10%) ===== ===== Indirectly we are allocating cost center Dept H values to production orders based on the consumption values. Define costing sheets: Path :Up to overhead the path is same- Define costing sheets Costing sheet Description Select Costing Sheet Double click on costing sheet rows folder Row Base Overhead Description 10 D1 Raw materials D3 RM Overhead rate From :10 To Row :10 Credit :D4 Row :30 Base :D2

10 Description :Product cost Row :40 Description :Cost goods manufacturer From :10 To row :30 Assign costing sheet to plant : Path :SPRO-Controlling Product cost controlling Product cost planning Material cost estimate with quantity structure- Define costing variants (TR code is OKKN) Select position button Cost variant :Select PPC1 standard cost estimate (Materials) Select PPC1 Select details button Select valuation variant button Select create beside valuation variant /plant In plant P Select back arrow Select valuation variant Select details button Select overhead tab Give the costing sheet :001 with plant BILP costing sheet both in the places Define cost component structure: To know the break up of standard product cost What is raw material cost? What is RM overhead cost? What is production cost?

11 Path :SPRO-Controlling Product cost Controlling Product cost planning Basic settings for material costing Define cost component structure. (OKTZ) Select cost component structure :01 Double click on cost components with attributes folder Select component structure :01 with cost component 10 raw materials Double click on assignment:cost component cost element interval folder Cost competent structure :01 Chart of Accounts From cost element : To cost element : Cost component Ignore the warning message press enter Select back arrow :select 10 RM Double click on cost components with attributes folder Select cost component structure 01 with cost component 80 Material over head Double click on assignment:cost component cost element Interval folder Cost component structure :01 Chat of Accounts From cost element Cost component : RM overhead :80 Material overhead Double click on cost components with attributes folder Select cost component structure :01 with lost component 50 production machine Double click on assignment cost component cost element interval folder Cost component structure :01 Chat of Accounts From cost element : To cost element :400299

12 Cost component :select 50 production machine One more Cost component structure :01 Chat of Accounts From cost center : To cost center : Cost component :50 One more Cost component structure :01 Chat of Accounts From cost element : Cost component :50 Double click on cost component structure folder For cost component structure 01 select active check box For cost component structure assignment structure 02 also for cost component Note: The above procedure is to be followed to 02 also PP CONSULTANT JOB: Define MRP controller Path :SPRO-Production material requirements Planning Master data-define MRP controllers Plant P MRP controller :Mr.A Notes: Define floats (Scheduling margin key) Floats Buffer days or grace days

13 2 days grace days Production order creation Production order release Production start date Production end date Path :SPRO-Production Material requirements planning Planning Scheduling and capacity parameters Define floats (Scheduling margin key) Plant Margin key Opening period Float before production Float after production Release period P :2 days :2 days :2 days :2 days Define production scheduler Path :SPRO-Production-Shop floor control- Master data-define production scheduler Plant P Production scheduler :B Description :Mr.B Determine person responsible for work center Path :SPRO-Production Basic data Work center General data Determination person responsible Plant P Responsible person : Mr.C Person responsible for work center :Mr.C CO END USER AREA: Planning cost center wise (KP06)

14 Version :0 From period :9 (December) To period :9 (December) Fiscal year :2008 Give the cost center :Dept G Select page down button or next page button Cost element : Salaries A/c Select from based radio button Select overview screen button (F5) For Plant fixed cost : Planning for machine hours Path :Accounting Controlling Cost center accounting Planning-Activity output /Prices- Change (KP26) Version :0 From period :9 To period :9 Fiscal year :2008 Select next page or page down button Cost center Activity type Select form based radio button Select overview screen button Plant activity :72000 :Dept G calculation of Machine hour rate Path :Up to planning the path is same Allocations Price calculation (KSPI) Select cost center group radio button Cost center group select PROD Execute Select save button Ignore the message press enter

15 MM END USER AREA Creation of material master (MM01) A) Raw material 2 B) Finished product 1 Give the material Industry sector Material type Press select view button Select basic data1 RM2 :Mechanical Engineering :Raw material Select organization levels button Plant Storage location :Select purchasing Select general plant data /storage /Accounting P :Hyderabad Give the description :Raw material 2 Base unit of measurement :KG Material group Division Select purchasing tab Purchasing group Select accounting 1 tab Valuation class Price control C :BS Moving price :150 1 RM Local :select V moving One more material FG1 Industry section :Mechanical engineering Material type :Finished product Press select view button Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1, accounting, Costing 1

16 Select organizational levels button /enter Plant P Storage location :Hyderabad Description :Finished product 1 Base unit measurement :KG Division :BS Select MRP1 tab MRP type :select PD (MRP) MRP controller :A Lot size :select EX lot for lot order quantity Select MRP 2 tab In house production :0 days Schedule margin key :select BIL Select MPR 3 tab Ignore the warning message press enter Availability check :select KP (no check ) Select work scheduling tab Production scheduler :B Select accounting tab Valuation class 2 Finished products Price control :S (Standard price) Standard price :300 Select costing one tab Overhead group :select BIL1 Note :BOM=Bill of Material PP END USER AREA Creation of Bill of Material Path :Logistics Production Master data Bills of material Bill of material Material BOM Create (CS01)

17 Give the material FG1 Plant P BOM usage :select 1 production For item :10 Give the component RM1 Quantity :1 Item :20 Give the plant RM2 Quantity :1 Creation of work center Path :Up to mater data the path is same Work centers then work centers-create (CR01) Plant P Work center :Dept G Work center category :select 0001 Machine Select basic data button Give the description :Dept G Person responsible :Mr.C Usage :009 Under standard value maintenance Standard value key :SAP1 Normal production Select costing tab Start date : Cost center :Dept G For machine activity :Give activity type BIL Activity unit :H (Hour) Formula key :SAP002 (Production machine time) Creation of routings

18 Path :Up to master data the path is same Routings Routings Standard routings Create (Tr code is CA01) Give the material Plant Usage Status Select operation button For operation 10 give the work center Control key FG1 P Double click on operation :10 Machine standard value :5 Unit :select 1 production ;select 4 (released (general)) :Dept G :select PP01 in hour production :H (Hour) Note: Routing is process flow as a department wise CO END USER AREA Creation of cost estimate with quantity structure: Path :Accounting Controlling Product cost controlling Product cost planning-material costing cost estimate with quantity structure Create (Tr code is CK11N) Give the material Plant FG1 P Costing variant :select PPC1 (standard cost estimate for material ) Costing date from :Today s date Note :In live environment next month first day date, this is planning date, In training institution use today s date Costing date to : Quantity structure date : Valuation date : Cost sheet Raw materials

19 BIL RM1 1 Kg 75 BILRM2 1Kg RM overhead cost -5% 11 Production costs 5*10 50 Machine hours 5 Hrs Machine hour rate 10Rs From the menu select Costs >Display cost components Select save button or Ctrl+S Marking and releasing Display material master Path :Logistics Materials management Material master-material Display Display current (MM03) Material FG1 Press select views button Select costing 2 view Plant P A) Marking and releasing Display material master 1. Making updates future price in live environment on 21 st February create estimate for March and store in the System. 2. Realizing updates current price on 1 st of March release stock valuation will be at the new rate from 1 st of March B) Marking and releasing : Path :Accounting Controlling Product cost controlling Product cost planning material costing Price update (CK24) Posting period :9 Fiscal year :2008 Company code Plant P Material FG1 Select test run check box

20 Select marking allowance button Select company code Costing variant :select PPC1 (Standard cost estimate for materials) Select back arrow Deselect test run check box Execute Select material Select costing to tab Select back arrow two times Select release button Execute Select material Select costing to tab FG1 FG1 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 In plant P Select back arrow Select valuation variant :006 with plant BILP

21 Select details button Select overhead tab Give the costing sheet costing sheet Select back arrow Select costing variant PPP2 production Order Actual Select details button Select valuation variant button Select create beside valuation variant/plant In plant P Select back arrow Select valuation variant 007 with plant P Select details button Select overhead tab Costing sheet :select BIL costing sheet Define goods received valuation for order delivery: Same path Valuation area P Valuation variant :007 production order -Actual Work in process customization Creation of 5 secondary cost elements (Tr code is KA06) Give the cost element : Valid from : to Name & Description Cost element category :Order /Project result analysis :select 31 (order /project results analysis)

22 Cost element : Reference cost element : Controlling area & Cost element : Reference cost element : Controlling area & Cost element : Reference cost element : Controlling area & Cost element : Reference cost element : Controlling area 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 (Tr code is OKG1) Result analysis key :FERT WIP calculation for production orders Define results analysis versions(tr code OKG9) Same path Select controlling area Technical result analysis cost element :select Define valuation method (Actual cost) ( Tr code is OKGC) Same path

23 Select actual cost button Controlling area Result analysis version :0 Result analysis key :FERT & 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 FK Direct cost 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 & 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 (5 times plus)( to ) & 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 and save Select line ID FK that is production cost for controlling area 1000

24 Select copy as button Change the controlling area to BIL Production cost elements: Personnel Manufacturing Depreciation Activity allocation Change master key cost element to & Notes: for define assignment line ID brak up of WIP Issue RM RM over head Dept A Dept B ept C Production costs work in progress 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 & Select 2FK line ID s for controlling area BIL Select copy as button Change masked cost element from first line ID Change to & 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 :(settlement cost element) & save

25 Define update; (Tr.code is OKGA) Same path Controlling area Version :0 Result analysis key :FERT Line ID :select EL revenues Category :select N (costs not to be included) Controlling area Version :0 Result analysis key :FERT Line ID :Select EK (Direct cost) Category :select K cost WIP : Revenues : Controlling area Version :0 Revenues analysis key :FERT Line ID :FK production cost Category :select K cost WIP creation : Reserves creation : Select page down button One more controlling area Version :0 Result analysis key :FERT Line ID :ABR settled cost Category :select A (Settled cost ) Creation of two GL Masters: WIP entry

26 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. : Company code Select with template button Give the GL A/c No INV RM local Company code Change short text to and GL A/c long text to work in process Other fields are common GL A/c No Company code Select with template button Give the GL A/c no Increase /Decrease stocks FG Company code Change short text and GL A/c loge text to INC/DEC stocks WIP (Work in Progress) 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) Controlling area Company code Result analysis version :select 0 Result analysis category :WIPR (Work in Process with requirement to Capitalized) P & L A/c : Balance sheet :200123

27 Define results analysis version (OKG9) Same path Select controlling area select details button Select transfer to Financial accounting check box Ignore the warning message press enter 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 Production order Select copy as button Change the variance key to BIL1 Change the name also variance key for BIL & Define default variance keys for plants (OKVW) Same path Select position button Give the plant P For plant P Assign variance key 1 Define target cost version: (OKV6) Notes:

28 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 & 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 Give the plant P Variance key :select BIL1 Creation of cost element group (KAH1) Give the cost element group PRODN Description :Production cost element for BIL Select Edit-Cost element -Select insert cost element button Personnel & Manufacturing Depreciation Activity allocation

29 Create allocation structure: Path :SPRO-Controlling Product cost controlling- Cost object controlling Product cost by order-period end closing Settlement create allocation structure Allocation structure :B2 Text Production differences allocation structure Select :B2 Double click on assignments folder Assignment Text 01 Direct costs(raw materials) 02 Material overheads 03 Production costs Select assignment 01 Double click on source folder From cost element : To cost element : Double click settlement cost elements folder Receiver category :select G/L, GL account Select by cost element check box Double click on assignments folder Select assignment 02 Material overheads Double click on source folder From cost element : RM overhead rate Double click on settlement cost elements folder

30 Receiver category :select G/L, GL Account Select by cost element check box Double click on assignment folder Select assignment 03 production cost Double click on source folder Give the cost element group PRODN save Double click on settlements cost elements folder Receiver category :select G/L Select by cost element check box Create settlement profile: Same path Settlement profile Description Select to be settled in full radio button Allocation structure :B2 Default object type production order differences settlement profile :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 Define CO.No.range interval for the business transactions

31 RKL -Actual Activity Allocation KZPI- Actual overhead (Periodic) User transactions code :KANK Give the controlling area 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 Ignore the warning message press enter Define exchange rate for type P (Standard truncation for cost planning for INR to EURO (Transactions code OB08) Exchange rate type :P Valid from : From currency :INR To currency :EUR Direct quotation :0.02 FI Consultant job BILRM2 receipt Purchase order GR IV Opening stock 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

32 Creation of 2 GL masters (FS00) Give the GL A/c No Company code Select with template button Give the GL A/c No. : Conversion charges Company code 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 GL A/c No. : Company code Select with template button Give the GL A/c No VAT payable Company code 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) Give the GL account no INC/DEC stock in FG Company code Select edit cost element button Valid from : to Cost element category :select 22 external settlement Assignment of account for automatic postings (OBYC) (See the material ) Double click on transaction PRD Cost (Price) differences Give the Chart of Accounts

33 Give A/c No production order differences Select back arrow Double click on GBB offsetting entry for inventory posting Valuation modifier :X General modification :BSA opening stock taking Valuation class 1 Account no. : stock taking account Valuation modifier :X General modification :AUA production Valuation class L Account : 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 Select copy as button Change the pant to BILP and :1000 with order type PP01 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 Select copy as button :1000 with order type PP01

34 Change the plant to BILP and save 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 and 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 Change the plant to BILP and save END USER AREA Creation of production order: Path :Logistics Production-Shop floor control-order Create with material (Tr code is CO01) Give the material FG1 Production plant Planning plant Order type P P Give the total Qty under quantities :10 :select PP01 Production order

35 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) From the menu select order display note the order no Select assignment tab Not to the reservation no 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 storage location Give the material no. Quantity Select save button or Ctrl+S P :HYD RM2 :100 kgs From the menu select other goods receipts display Select accounting documents button Inventory RM LCL BILRM2 BIL1 BSX Stock taking 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

36 Qty BIL RM1 :15 BIL RM2 :15 From the menu select goods issue display Select accounting documents button Select accounting document no Inventory RM local 1125 BILRM1BSX BIL RM consumption local 1125 BILRM1 GBB VBR BIL1 Quantity consumed * Avg rate ( 15 *75) Inventory RM local 2250 BILRM2 BSX BIL1 GBB VBR RM consumption local 2250 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. : 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. : WIP period :9

37 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 ( (month end date) Path :Up to single functions the path is same Settlement of individual processing (Tr code is K088) Give the order no. : 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 INC/DEC in stock WIP 3713 P &L Account 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_ ) Plant P Material number FG1 From period : To Period : Execute Select report call button

38 Confirmation of production order Path :Logistics Production shop floor control Confirmation -For operation time ticket (Tr code is Co11N) Give the order no. : Operation /Activity Confirmation type Yield to confirm Fro activity 2 to confirm Unit :10 kg :select final confirmation :10 kg :60 Qty :H (Hour) Production receipt Path :Logistics Material management Inventory management Goods movement Goods receipt for order (Tr code is MB31) Give document date : Posting date : Give the movement type Order : Plant Storage location :101 (Goods receipt for order into ware house) P :HYD Ignore the warning message press enter Select save button or Ctrl+S From the menu select goods receipt display Document no Select accounting documents button Select accounting document no Inventory FG 2860 BILFG1 BSX BIL2 GBB INC/DEC in stocks FG 2860 BILFG1 BIL2 Qty produced * standard rate 10*286 To make production order technically complete (TECO) AUF

39 Path :Logistics Production shop floor control Order Change (Tr code is CO02) Give the order no From the menu select functions Restrict processing Technically complete 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 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 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. : WIP to Period :9 Fiscal year :2008 Result analysis version:0 Deselect text run check box

40 Execute Settlement of work in process to accounts :KO88 Give the order no. : 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 INC/DEC in stocks FG 853 BILFG1 BIL Production order diff 853 period INC/DEC in stock WIP 3713 P & L debit work in process 3713 Balance sheet credit