SAP Business Process Improvement Series

Actual Costing in SAP

www.Enterprizeerp.com

Why Would I Want To Use Actual Cost?

Actual Costing of Materials Multiple Valuation-Group, Legal, Profit

Center

Multiple Currencies Dollars, Euro Vendor Price Performance Gross Margin Analysis Standard and Actual Costing Cost Management
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What SAP Modules Supports Actual Costing?

Material Ledger FI Cost Center Accounting Profitability Analysis

Materials Management Production Planning Plant Maintenance Project Systems

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Key Integration Areas

Sr.No. 1 2 3 4 5 6 7 8 9 10 11 Areas Inventory Valuation Capitalize Variances Actual Price Determination Cost Component Split Material Master Maintenance Procurement Automatic Account Determination Product Quantities Material Quantities Perodic Revaluation Actual Cost Component Split SAP Functionalities General Ledger Posting General Ledger Posting Cost Estimate Cost Estimate Materials Management Materials Management Materials Management Sales & Distribution Production Orders Cost of Goods Sold Cost of Goods Sold SAP Modules FI FI COPC COPC MM MM MM SD PP COPA COPA

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What Is Required To Calculate Actual Costs?

Material Ledger Activation Set-up & Master Data Standards

Posting Actuals
Month End Closing
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Set-up and Master Data

Material Ledger Configuration Plant Set-up Material Master Creation

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Material Ledger Configuration

Do You Really Want to Do This? Be Sure You Understand What You Want to Accomplish Configure the Material Ledger

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Plant (Valuation Area) Set-up

Assign Material Ledger Types to Valuation Area Activate Valuation Areas for Material Ledger Set Valuation Area As Productive

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Material Master Creation

Specification of Settlement Type

2 Immediate Settlement 3 Periodic Settlement

Price Control = S

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Creation of Standards
During the Month Everything Happens at Standard Standards Are Needed for Variance Based Reporting Allows for Cost Component Breakdown*
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Planning and Budgeting

Considerable Use of Activity Types Primary and Secondary Cost Planning Target = Actual Activity Types Fixed and Variable Cost Planning

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Posting Actuals

Logistics Invoice Verification Standard Material Movements Standard Cost Center Postings

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Month End Close Process

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Month End Closing Target = Actual Activity Allocations

Allocations Based on Operating Rate Receiver Based Fixed Quantity Allocations Can Be Used

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Month End Closing Orders and Projects Preliminary Settlement

Maintenance Orders Engineering Projects Critical for Actual Cost Flow

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Month End Closing Cost Center Actual Activity Price Calculation

Quick Handles Iterative Costs Supports Cost Component Breakdown - Even in Actuals

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Month End Closing Order & Project Revaluation With Actual Activity Rates

Gets Actual Costs in Overhead Order Reporting Allocates Actual Costs to Manufacturing Orders Can Allocate Directly to Material Ledger
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Month End Closing Orders & Projects Final Settlement

Brings Sender Cost Center and Receiving Order Into Balance Adjusts Cost Element in Receiving Cost Center

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Month End Closing Material Ledger

Materials Selection Costing Sequence Determination Single Level Price Determination Multi-level Price Determination Post Closing Entries

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Month End Closing CKMLCP

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Month End Closing CKMLCP

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Month End Closing CKMLCP

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Month End Closing Profitability Analysis Revaluation With Actual Cost

Invoices Revalued Monthly Standard SAP Enhancement COPA0002 Includes Results in CO-PA Value Field

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Actual Cost Reporting Material Ledger Display

Procurement Production Transfers Consumption Subcontracting

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For more Information

Ram Rishi
Managing Partner
2262, Petworth Court, Unit 202 C Phone : 1 (630) 649 9235, Fax : 1 (630) 689 9455 Ram.Rishi@EnterprizeERP.com

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