SAP Co note

SAP CO NOTES

INDEX

PARTICULARS Page No.
CO Areas and Basic Settings for Controlling 3
Cost Center Accounting 11
Online Reconciliation Leger 23
1. Creation of GL Masters 25
2. CO Customization 27
3. FI Customization 28
Cross Company Code Postings 31
Maintain Overhead structure 34
Statically Key Figures (SKF) 38
Assessment 42
Internal Orders 46
Budgeting and Availability Control 60
Profit Center Accounting 64
Integration 76
1. Transaction Key /Process Key 77
2. Valuation Class 78
3. Assignment of accounts 89
4. MM Customization 90
5. FI Consultant job in MM 97
6. Assignment of Accounts for Automatic Postings(MM 100
to FI)
7. FI Consultant job in SD 115
8. SD Steps
9.
Co-Profitability Analysis (CO-PA) 120
1. Data flow in CO-PA 120
2. Customization 122
3. SD End user area 126
Report Painter 129
Product Costing 132
1. Co Consultant Job (Activity based costing) 134
2. PP Consultant job 144
3. CO End User area 146
4. MM End User area 147
5. PP End user area 149
Actual Costing 153
1. CO Consultant job 153
2. PP consultant area 167
3. Asset Accounting area 174
New General Ledgers (ECC 6 New Features ) 179

1

1. Customization 180
2. Document Splitting 188
Central Excise and Sales Tax 192
1. Central Excise Customization (Purchase) 195
2. Central Excise customization (Sales) 211
3. SD End user area 217
Financial Statement Version 228
Asset Accounting Area 237
Project Report 238

CONTROLLING (CO)

This is used for internal reporting in Co organizational Hierarchy – Highest node is
controlling area. In FI Highest node is company , Company code

CO AREAS :

1. Cost Elements Accounting: To update Co records / sub modules cost elements
are required.

There are two types of cost elements
1. primary cost elements
2. Secondary cost Elements

2. Cost Center Accounting: This is used to view department wise costs.

3. Internal orders: This is used to view costs for specific task.

Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle,
Telephone wise expenses production order costs / Exhibition costs.

Create each vehicle as n order and capture the costs

Production order:
Create production order as on internal order and capture the costs.

Exhibition costs: Sales men salaries , Advertisement discounts to customers
conveyance. Create a exhibition order

4. Profit center accounting : This is used to view profitability product wise /
Division wise / Location wise if business area is not used in FI

5 Product Costing :This is used for valuation if inventories

2

Eg: Finished goods and work in process.
6. Profitability analysis: This is used to view profitability for number of parameters
at a time.
Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales
organization wise profitability this is reporting tool

BASIC SETTINGS FOR CONTROLLING:
Maintain controlling area

FI Organization Structure CO. Organization Structure

Company Controlling
| |
Company code |
| |
Business area Cost Center

Scenario – 1

Company
|
Company code = Controlling Area
| |
Business area --- Cost Center

(a)Controlling area at company code level, b)Business area will be assigned in cost
centers.)

Scenario -2

Company = Controlling Area
| |
Company code |
| |
Business area --- Cost Center

(a )Controlling area at company (group) level no. of company codes will have one
controlling area, b) Business area will be assigned in cost centers.

3

1) When management wants to view number of company codes cost centers data at a
time – It is not possible in 1st Scenario – It is possible 2nd scenario.

In report it will ask only one controlling area and not multiple controlling area.

2) When management wants to view number of cost centers data of company code –
Directly it is possible in 1st scenario.

Also it is possible in 2nd Scenario – By creating cost center groups.

It means 2nd Scenario is more flexible.

MAINTAIN CONTROLLING AREA:

Path : SPRO – Controlling – General controlling – Organization – Maintain
controlling area (Tr.Code is OKKP)

If we go for 1st scenario – company code should be the controlling area.

If we go for 2nd scenario we can use any code for controlling area code.

Double click maintain controlling area.

Select new entries button

Controlling area :BIL
Name :controlling area forBIL
Company code to controlling area : Select controlling area same as company code
Currency type : select 10 company code currency.

Once we select 10 company code currency , currency field, Chart of Accounts filed and
Fiscal year variant filed will be updated automatically.

Cost Center standard hierarchy : BILHIER
Save
Select yes button for the message system to create as a standard hierarchy
Select create request button
Short description : Co customization for BIL

Press enter
Press enter once again to save in the request.

COST CENTER STANDARD HIERARCHY:
Cost center standard hierarchy : BILHIER
|
Cost centers Dept. A Dept.B Dept.C

4

At the time of cost center creation – It will ask under which hierarchy we are creating the
cost centers.

In the report – when we give cost center Dept.A – It gives only Dept.A date. When we
give cost center Dept.B – It gives only Dept.B date.

When we give cost center hierarchy BILHIER – It gives all the cost centers data.

Double click on assignment of company codes folder
Give the company code : BIL
Select save button or Ctrl+S
Press enter to save in your request
Double click on a activate components / control indicators folder
Fiscal year :2007
Cost center : Select component active
Select active type check box
Order management select component active.
Select profit center accounting check box
Save
Ignore the warning message press enter

MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS:

1. CO through posting from FI (Business transaction – COIN

CO No rang interval for the business transaction –COIN

FI Document type Co
And no.ranges

SA COIN
| |
01 |

5

|
1-100000 1-00000
Manual posting F-02 Automatic posting

1. Repost Co line items (Business transaction –RKU3)

Option 1

Posting in FI

Wages A/c Dr 100000 Dept.A
Wages A/c Dr 200000 Dept.B
Wages A/ Dr 300000 Dept C
To bank 600000

1 FI Document
1 Co Document – COIN

Note :Automatic posting is a business transaction

Option 2

Posting in FI Posting in CO

Wages A/c Dr 600000 Dept common Dept A 100000
Dept.common Dept B 200000
Dept. Common Dept C 300000

To Bank 600000 Post Co line item

2 Documents
1 FI Document No FI document
1 CO Document –COIN 1 CO Document – RKU3

Transfer document wise/line item wise
Total documents generated

1. FI Document
2. CO Documents

Wages A/c Dr 600000 Dept Common Dept A 300000
Dept Common Dept B 200000
Dept Common Dept C 300000

Rent A/c Dr 50000 Dept A

6

To bank 650000 Repot CO line item

Transfer line item wise

Transfer document wise / Line item wise

Report costs ( Business transactions – RKU1)

This is used when we split the cost center into number of cost centers or transfer for
wrong cost center postings.

No FI document will be generated

CO document only will be generated

Transfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept X

Dept A Dept X

30/04/2008 400100 Salaries 200000
30/05/2008 400100 Salaries 250000
30/06/2008 400100 Salaries 275000
----------
400100 total 725000 400100 Salaries 200000

30/04/2008 400101 wages 100000
03/05/2008 400101 wages 150000
30/06/2008 400101 wages 125000
----------
Total 400101 375000 400101 wages 125000

30/04/2008 400300 Rent 500000
31/05/2008 400300 Rent 50000
30/06/2008 400300 Rent 50000
--------
400300 Total 150000 400300 Rent 40000

Planning primary costs ( Business transaction RKP1)

Planning cost center wise or no. range interval for all the types , budgeting cost center
wise for each cost element.

Path: SPRO- Controlling – General controlling – Organization- Maintain number
ranges for controlling document (T.Code is KANK)

Controlling area : BIL

7

Select maintain groups button
From the menu select group – Insert
Text: Co doc no. range interval for BIL
From number :1
To number :100000
Enter
Double click on business transactions COIN
RKU3
RKU1
RKP1
Select Co.No.range interval for BIL check box
From the menu select Edit – Assignment element group
Save
Ignore the message press enter

Note :Usage of Version locked authorized person only Eg; Cost Accountant

MAINTAIN VERSIONS:

Version are nothing but budgets

Original budgets Version 0
Revised budget version 1
Re revised budget Version 2

We can compare actual with original budget, Revised budget and Re revised budget

Path: SPRO – Controlling –General controlling – Organization – Maintain
versions

Select version 0 (Plant /actual version )
Double click on settings for each fiscal year folder
Give the controlling area : BIL
Enter
Fiscal year :2008
Exchange rate type :select B (Bank selling rate)

Once budgeting is completed at end user are a select version locked – So that no body
can change budget figures.

8


Select bank arrow
Planning is made attend user area after planning’s completed we select version locked
check box , no body can change planned figures.

COST ELEMENT ACCOUNTING:

To update CO records / sub modules cost elements are required

There are 2 types of cost elements

1. Primary cost element 2 Secondary cost elements
A)Primary cost elements are our general A)Secondary cost elements are other than
ledger accounts general ledger accounts
B) Posting to primary cost elements are B) Postings to secondary cost elements are
possiable not possible. They are used to allocations /
Settlements

Dept C Dept A Dept B
(Service Dept) (Production Depts)
Salaries 100000
Wages 200000
Power 5000
In the month end, by using secondary cost
element, we allocate costs from service to
production Depts.

COST ELEMENT CATEGORIES

PRIMARY COST ELEMENT CATEGORIES:
1. Primary cost / costs redacting revenues. This used for expenditure accounts
3. Accrual / Deferral per surcharge :This is used for month end provisions only in
CO
11. Revenues: This is used for income accounts
12. Sales Deduction: This is used for expenditure accounts like sales commission
Trade discount where CO-Profitability analysis module is activated
22. External settlement( Settlement from CO – FI): This is used for allocation of
internal order settlement to GL Accounts / Assets.

9

SECONDARY COST ELEMENT CATEGORIES:

21. Internal settlement (Settlement from CO to CO) This is used for allocation of
internal order settlement cost to cost centers.
31. Order/ Project Results analysis: This is used for work in process calculations is
product costing.
41. Overheads rates :This is used for calculation of raw material overhead rate /
Production overhead rate in product costing .
42. Assessment: This is used for allocation of primary cost element posing and
secondary cost postings from one cost center to other cost centers.
43. Internal Activity Allocation: This is used for calculation of activity types in
production cost.
Eg: Machine hours rate / labour hour rate in product costing.

COST CENTER ACCOUNTING

This is used to view department wise costs we use cost center accounting.
1. Creation of primary cost elements, we can create
A) FI Area |
B)CO Area |- Co Area
C)Automatic creation |

2. Display cost elements created
3. Creation of filed status group by making cost center required entry field
4. Assign new filed status group in GL expenditure accounts
5. Creation of cost centers.
6. Creation of cost center groups.
7. Creation of cost element groups
8. To enter exchange rate for type M for INR to Euro
9. Posting of transaction in FI
10. To view cost center wise report.
11. To view CO documents

1. A) Creation of primary cost element at FI area
Use to FS00 – GL masters creation
Give the GL account number : 400100 Salaries Account
Company code : BIL
Form the menu select GL Account display
Now select edit cost element button
Valid from date :01.04.2008
To date :31.12.9999 comes automatically
Enter
Cost element category : Select 1 (Primary cost / cost reducing revenues)

10

1. B) Creation of Primary cost element at CO area:
Use transaction code FS00

Path: Accounting- Controlling- Cost element accounting-Master data-Cost
element –Individual processing-Create primary (Tr.code KA01 )

Cost element : 400300 Rent Account
Valid from :01.04.2008 to 31.12.9999
Enter
Cost element category :1 (primary cost /cost reducing revenue)
Save

1. C) Automatic creation of primary cost elements:

1) Marked default settings (OKB2)

path : SPRO-Controlling-Cost element accounting-Master data – Cost elements –
Automatic creation primary and secondary cost elements-Make default
settings.(Tr.code is OKB2)

Give the chart of Accounts : BIL
Enter
Account from :400301
Account to :499999
Cost element category select 1
Save

Create batch input session (OKB3)
Same path as above
Valid from :01.04.2008
Valid to :31.12.1999
Session name :BIL (This is text field)
Execute

Execute batch input session (Tr code is SM35)

Same path as above
Select session name : BIL
Select process button
Select session :BIL

11

Select display errors only radio button
Select process button
We get a message processing of batch input session completed.
Ignore the message & select exit batch input button

Display primary cost elements created (KA03)

Path: Accounting-Controlling-Cost element accounting-Mater data-Cost
element –Individual processing – Display- (Tr code is KA03)

Select drop down button beside cost element
Give the Controlling area : BIL
Enter

Creation of field status group by making cost center required entry field:
(Tr.Code is OBC4)

Select field status variant: BIL
Double click on filed status groups folder

100000 equity share capital G001 We can’t make cost center required for
balance sheet accounts

400100 Salaries Account G001
For G004 we make cost center required and
assign in salaries account (i.e in expenditure
accounts)

Double click on field status group G004 cost accounts
Double click on General data
Text make it required entry field
Select next group button
Cost center select required entry filed
Select next page or page down button two times.
Business area make it option entry filed
Save


12

Assign group new field group in GL expenditure accounts (FS00)

Give the GL account 400100 salaries account
Company code :BIL
From the menu select GL account change select create / Bank / Interest tab
Filed status group change to G004
Save
Give the GL Account No.400300 Rent A/c
Company code :BIL
From the menu select GL account change
Change field status group to G004
Save

Creation of cost centers:

Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-
Individual processing-create (Tr.code is KS01)

Cost center : Dept A
Valid from :01.04.2008 to 31.12.9999
Enter
Give the name : Dept A
Give the description : Dept A
Person responsible :Mr.A
Cost center category : Select 1 production
Hierarchy area : select BILHIER
Business area :BILH
Currency :INR
One more cost center : Dept B
Valid from :01.04.2008 to 31.12.9999
Reference cost center : Dept A

13

Enter
Change the name to Dept B
Change the description to cost center Dept B
Change the person responsible : Mr B
Other fields are common
Select save button
Cost center : Dept C
Valid from :01.04.2008 to 31.12.9999
Enter
Change the name to : Dept C
Change the description to cost center : Dept C
Change person responsible to Mr.C
Cost center category : Select to 2 (service cost center)
Select save button or Ctrl+s

Creation cost center groups:
Hierarchy : BILHIER
Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z
Category Production Prod Service Production Production Service
Business Area HYD HYD HYD BGL BGL BGL

If we want to see all cost centers data – BILHIER

If we want to see production cost centers data – Create a cost center group and assign
Dept A . Dept B, Dept X and Dept Y.

If we want to see HYD cost centers data cost – cost center group and assign Dept A, Dept
b and Dept C

If we want so settled production cost centers data – create A cost center group and assign
Dept A and Dept B

14

Path : Accounting – Controlling – Cost center accounting – Master data- Cost center
group – Create (Tr.code is KSH1)

Give the cost center name : BILHYD PROD
Enter
Description Hyderabad production cost centers BIL
Select Edit Cost Center Insert cost center button
Select the cost centers Dept A
Dept B
Save

Creation of cost Element group:

FI : Account groups Personnel cost CO:Dept wise personal cost or
Administration

400100 salaries Create cost element group personnel and
assign 400100 -400199
400101 Wages

400102 Bonus

400103 Staff welfare and Administration Create cost element group administration
and assign 400300-400399
400300 Rent
400301 Telephone exp
400302 Petrol exp In the report center Dept A Dept C
Or
Cost center GRP
Cost element
Or
Cost element GRP personnel
administration

Path: Accounting –Controlling-Cost center accounting-Master data-Cost element
group –Create (Transaction code: KAH1)

Cost element group name : BILADMIN
Enter
Description : Administration expenses for BIL
Select insert cost element button (Shift+F4) (Edit –Cost element –Insert cost element)
From 400300 to 400399

15

Save

To enter exchange rate for type M for INR to EURO (Tr.Code is OB08)

Exchange rate type : M (Average rate)
From currency : INR
To : EUR
Direct quotation :0.02

Posting of transaction in FI Transaction code:F-02

Give the document date : Today’s date
Type :SA
Company code :BIL
Posting key :40
Account :400100 salaries account
Enter
Give the amount :500000
Text :Salaries posting

One more expenditure

Post key :40
Account :400300 Rent account
Enter
Amount :100000
Text : Rent posting
Posting key : 50
Account :200105 SBI current account
Enter
Amount :*
Business area :BILH
Text : Expenditure posting
From the menu select Document Simulate

16

To view cost center wise report:

Path: Accounting –Controlling-cost center accounting –Information system-Report for
cost center accounting-Line items –Cost centers: Actual line items (Transaction
:KSB1)

Cost center select Dept A (if you want change the posting dates)
Select execute button
Keep the cursor and the first line item
Select document button
Select back arrow
Select change layout button (Ctrl+F8)
Select Document no.under column set
Select value in reporting currency under displayed columns
Select left arrow or show selected filed button
Select reference document no.under column set
Select value in report current under displayed columns
Select left arrow
Select business transition under column set
Select document no. under displayed columns
Select left arrow
Enter

To view co documents:
Path :Up to reports for costs center accounting path is same -Line items – Co
documents :Actual costs (transaction code is KSB5)

Document no. :1 to 100000
Execute
Select folder button for document no.1

Report co line items:

Business transaction RKU3
FI doc.13
001 400100 Salaries 500000 Dept A 150000 Dept B
50000 Dept C

17

Report co line item
002 400300 Rent 100000 Dept A
003 200105 SBI 600000

Report co line item
Transfer document wise /line item wise , transfer line item wise
Only document will be generated

Path: Accounting – Controlling-Cost center accounting –Actual postings-Report line
items-Enter (Transaction code is KB61)

Select document no. :13
Company code :BIL
Fiscal year :2008
Execute
Double click on line item no.1
Amount under new account assignment 150000
Cost center :Dept B
Select new item button
Select next button
Amount under new account assignment 50000
Cost center : Dept C
Save

Go and see the cost center report KSB1

Give the cost center Dept A
To view cost element wise to total
Select cost element column
Select sub totals button
(Note:That is dues cost element wise total)

Repot costs (Business transaction RKU1)

This is used when we split a cost center in to number of cost centers or wrong cost center
postings.
Only CO document will be generated
Transfer cost element wise (GL account wise)

18

Path : Accounting-Controlling-cost center accounting –Actual postings-manual
reporting of costs – Enter (Transaction code is KB11N)

Cost center (old) : Dept A
Cost element 400100 Salaries
Amount :100000
Cost center new : Dept C
One more cost center (old) : Dept A
Cost element :400300 Rent
Amount :25000
Cost center (new) : Dept C
Enter
Select save button or Ctr+S

Period lock:

FI CO
A) Transaction which effect To open To open
FI and CO eg:COIN
B) Transaction which effect No check To open
only CO Eg.RKU3, RKU1
C) Transaction which effect To open No check
only FI Eg.Debit balance
sheet and credit balance
sheet
Sept .08 March Oct 2008 to March 2009

An expenditure posting in FI for September. We can’t post since periods are not open.

Path: Accounting – Controlling-cost center accounting-Environment –Period lock-
chang (Tr.code is OKP1)

Fiscal year :2008
Select actual button
Select period :01
Select lock period button
Save

19

Set controlling area :(OKKS):

Path :up to Environment the path is same Set controlling area

Give the controlling area :BIL
Enter
Real time integration of controlling with FI on line reconciliation ledger
This is used when we get for 2nd scenario (no.of company codes having one controlling
area ) all the company codes should use same Char of Accounts.

Planning cost center wise

Path :Accounting –Controlling cost center accounting –Planning –Cost and Activity
inputs –Change (KP06)

Version :select 0 (Original budget)
From period :1
To period :12
Fiscal year :2008
Select next page or page down button
Cost center group :BILHIER
Cost element From :400000
Cost element To :499999

Free Form Bsed
If we select radio button If we select from based radio button
We have to select cost element from the The cost element list in a available on
drop down list and plan against the screen plant against cost elements
Climents

Select form based radio button
Select overview screen button
For cost element 400100 Plan Fixed cost 1500000
Distribution key 1 Equal distribution
Select cost element 400100
From the menu select Goto –Period screen
Select back arrow
Fro cost element 400300 Plan fixed cost 960000

20

Distribution key 1
To plan for Dept B –Select next combination button
To go back to previous dept –select previous combination button
Save

To view variance report cost center wise

Path :Accounting – Controlling-Cost center accounting –Information system –Reports
for cost center accounting –Plan /Actual comparisons –Cost centers: Actual
/Plan/Variance (Tr code is S_ALR_87013611)

Fiscal year :2008
From period :10
To period :10
Plan version :0
Cost center Value :Dept A
Execute
Keep the cursor on Salaries A/c actual costs amount
Select call up report button
Double click on cost centers : Actual line items keep the cursor on the first line item.
Select document button

21

ONLINE RECONCILIATION LEDGER

Reconciliation used when
when number of company codes having one controlling area – 2nd Scenario
It can be at controlling area
All the company codes should use the same Chart of Accounts
due to online reconciliation ledger, it generated in a document in FI

BIL Controlling area
|
------------------------------------------------------------------------
| |
Company code BIL company code BSL
| |
------------------------------------ ------------------------------------
| | | | | |
Dept A Dept B Dept C Dept X Dept Y Dept Z

If salaries paid and posted FI at (F-02)

Salaries A/c
----------------------------------
100000 |
|
Out of 100000 salaries 20000 belongs to company code BIL

If we use the reconciliation account at cost center level and the 20000/- is transfer to
company code BSL (Dept X) it passes the entry in financial automatically
Here Reports at – No FI records
In BIL Books
BSL Dr 20000
To Salaries a/c 20000
In BSL books

Salaries account Dr 20000

22

To BIL a/c 20000

Customization at Finance:

To copy company code BIL customization including accounting to BSL

Path :SPRO-Enterprise structure – Definition –Financial accounting –Edit, copy,
Delete, Check company code(T.Code EC01)

Double click on copy, delete, check company code
From the menu select organization object – copy organization object
From Company code :BIL
To company code : BSL
Enter
Select Yes for the message (for copy the GL accounts)
Select No button allocate a different local currency
Short description :Customization for Birla Steel Limited
Press enter
Enter once again to saving the request
Go on press enter till you got the message company code BIL copied to BSL with out 75
number range object
Select back arrow
Double click on edit company code data
Select position button
Give the company code :BSL
Enter
Select company code : BSL
Select address button
change the company name to : Birla Steel limited
Enter
save and Save in your request button

23

Assign company code to company

Path :SPRO-Enterprise structure-Assignment –Financial accounting-Assign
company code to company

Give the company code : BIL
Enter
For the company code :BSL assign BIL(group name)

Document type SA should allow inter company postings: (OBA7)

Select type : SA
Select details button
Select inter company postings check box
Save

Creation of GL Masters FS00

BIL Books BSL Books
1) FI/CO reconciliation account under only 1)FI/CO reconciliation account under any
expediter group which should not be a cost expenditure group which should not be a
element 400150 –Personnel group cost element 400150 personnel group
2) Birla Steels limited, current assets, 2)Birla Industries Limtied current Assets,
Loans & Advances 200160 Birla Steel Loans & Advances 200161 – Birla
Limited Industries Limited

Same chart of accounts
BIL chart of accounts BIL
BSL chat of accounts BIL
When we use same chart of accounts, account description should be same in all the
company codes.

In BSL books – If we create account No.200160 – It takes Birla Steels Limited- we can
not crate our account in our books.

Creation of GL masters FS00

Give the GL account no. :400150

24

Company code :BIL
Select with template button
Give the GL account o. :400100 Salaries
Company code : BIL
Enter
Change short text & GL account long text to FI/CO reconciliation account
Select create / bank /interest tab
Field status group change to ‘ICCF’ CO < -> FI reconciliation posting
Save
Give the GL Account No.200160
Company code : BIL
Give the GL Account No.200100 Cash A/c
Company code :BIL
Enter
Select type/Description /tab
Change short text GL account long text to BIRLA STEEL LIMITED
Select create / Bank/Interest tab
Filed status group change to G067
Deselect relevant to cash flow check box
Save
Give the GL account No.400150
Company code :BSL
Give the GL account 400150
Company code :BIL
Enter & Save
Company code :BSL

25

Company BIL
Enter
Select type / Description tab
Change short text +GL long text to Bila Industries limited
Save

Prepare cross company code Transaction (Transaction code is OBYA)

Path :SPRO-Financial accounting-GL accounting –Business transactions-Prepare
cross company code transactions

Company code 1 BIL
Company code2 BSL
Enter
Posted in BIL
cleared against BSL
Debit posting key :40
Account debit :200160 ( Birla Steel Limited)
Credit posting key :50
Account credit :200160
Posted in BSL
Cleared against BIL
Debit posting key :40
Account debit :200161 Bilra Industries Limited
Credit posting key :50
Account credit :200161
Save

CO customization ( tr code is OKKP)

Maintain controlling area
Assign company BSL to controlling area BIL
Select controlling area :BIL
Company code to controlling area: Select cross company code cost accounting
Reconciliation ledger document type :SA (GL accounts document)
Double click on activate components / control indicators folder
Select company code validation check box
Double click on assignment of company codes folder

26

Select company code :BIL
Select copy as button
Change the company code to BSL
Enter & save

Activate reconciliation ledger (Tr code KALA)
Note: Follow through path

Path:SPRO –Controlling –Cost element accounting-Reconciliation ledger-Activate
deactivate reconciliation ledger

Double click on activate reconciliation ledger
Select Execute button

Define adjustment accounts for reconciliation posting (Tr code is OK17)
Same path
Double click on define accounts for automatic postings
Select change account determination button
Save
Reconciliation account: Give the account no.400150 FI/CO
Save

FI CUSTOMIZATION

Define variant for real time integration:

Path :SPRO-Financial accounting (new) Financial accounting global setting (new) –
Ledger-Real time integration of controlling with financial accounting –Define variants
for real time integration

Variant for real time integration B1
Select real time integration active check box

27

Select account determination active check box
Key date active from :01.04.2008
Document type :SA
Ledger group (FI) :0L
Text variant for :BIL
Select cross company code check box
Select cross business area check box
Select cross profit center check box
Save

Assign variants for real time integration to company code:

Same path.
Company code :BIL
Variant :B1
Company code :BSL
Variant :B1
Save

Creation of cost center for company code BIL (KS01)

Give the cost center department X
To date :31.12.9999
Reference cost center :Dept A
Enter
Change the name to :Dept X
Change the description to cost center dept X
Change company code to BSL

28


Repost costs (F-02)

Cost center old :Dept A
Cost element :400100 Salaries
Amount :20000
Cost center new Dept X
Save

To make text filed optional for field status group G004 cost accounts(Tr.code is
OBC4)
Select field status variant for BIL
Double click on field status groups folder
Double click field status G004
Double click on General data
Text make it optional entry field
Press enter to save in our request

Go and see the FI documents (Tr.code is FB03)

Select document list button
Give the company code :BIL
Enter the date :From date To Date
Execute
Double click on document no.
Select back arrow
Chang the company code to BSL
Execute
Double click on document no.

29

CROSS COMPANY CODE POSTINGS

Company code :BIL BSL

Outstanding expenses of BSL paid by BIL

BSL Dr 25000 Outstanding 25000
To Bank 25000 To BIL 25000

Paying company code : BIL
Credit Bank :BIL 25000
Debit outstanding exp :BSL 25000

Use the Transaction code :F-02

Give the document date :Today’s date
Type :SA
Company code :BIL
Posting key :50
Account no. :200105 SBI CA
Enter
Amount :25000
Business area :BILH
Text :outstanding expense payment on behalf of BSL
Posting key :40
Account no :100500 out standing exp.
New company code :BSL
Enter
Amount :*
Business area :BILH
Text :+
From the menu select document Simulate
Double click third line item
Business area :BILH
Text :+
Select next item button
Business area :BILH
Text :+

30

Select save button or Ctr+S
Posting by
Company code :BIL
Cross company code no. :15 08

FI posted by
Company code :BSL
Cross company code no. :2 08

By viewing the cross company code document number – We know which company code
has initiated the posting.

Select continue button

Accrual orders (Imputed cost calculation)

This is used for month end provision only in CO
This is used for irregular expenses like Bonus
Cost element category should be 3
Accrual/ Deferral per surcharge
Define CO.No.range in interval for business

Transaction :KAZ1 – Actual cost center accrual

FI Month end provision
1. Accrual / Deferral document
A. Bonus provision for Nov
30.11.2008 Bonus A/c Dr.10000
To Out standing exp. 10000 Dept A
B. Reverse next month 1st 01.12.2008
01.12.2008 Outstanding Exp. Dr.10000
To Bonus A/c 10000 Dept A

C. Bonus provision for Dec.
31.12.2008 Bonus A/c Dr 20000
To Out standing exp 20000 Dept A

2. Open item management
A). Bonus provision for Nov.
30.11.2008 Bonus A/c Dr10000
To Outstanding exp. 10000 Dept A
B). Bonus provision for Dec.
31.12.2008 Bonus Dr.10000
To Outstanding exp 10000 Dept A

31

Month end provision

Number of companies will not prepare profit & loss and Balance sheet every
month, the will not make provision in the books every month in year end,
companies follow accrual basis of accounting. They make provisions for the
whole year.

Expenditure for all the months Less (other than March)
Expenditure for March More

In SAP when we take production an accounting entry will be generated
automatically – Finished goods valuation will be based on costs for the month.

Stock valuation will be accrual orders Lower in all month other than March

Accrual orders Higher in March

Create overhead structure
Salaries 100000
Bonus -10% on salaries 1000 Debit cost center credit cost center
Dep Dummy (No accounting entry)

In the month end Dept A

Bonus 1000 allocation to Dept A costs will
be allocated to production orders –
There by Dept A will be zero-
production valuation will be correct.

Dept Dummy
Bonus 1000

In the year end – in FI when we make bonus provision for the whole year.

31.03.2009 Bonus A/c Dr 1200000
To Outstanding 1200000 Dept Dummy

Dept dummy values in the year end

31.03.2009 Dept dummy 1200000 April to March 10000*12 = 120000
====== =====

In the year end Dept dummy values will be zero.

Creation of GL master bonus account – personnel cost (FS00) group:-

32

Give the GL Account No. :400105
Company code :BIL
Give the GL account no. :400100 (salaries)
Company code :BIL
Enter
Change short and GL account long text to Bonus account
Save
Select edit cost element button (F8)
Valid from date :01.04.2008 to 31.12.9999
Enter
Cost element category :Select 3 accrual deferral per surcharge
save

Creation of cost center – Dept dummy (KS01)

Give the cost center : Dept dummy
Enter
Change name to Dept dummy
Change description to cost center: Department dummy
Select save button

Maintain overhead structure:

Path:SPRO-Controlling –Cost element accounting-Accrual calculation –percentage
method-maintain overhead structure (Transaction code is KSAZ)

Select create over head structure button (F7)
Over head structure :BIL1
Description :BIL overhead structure
Select save button
Row Base
10 B1
Enter
Give the name salaries
Select create button
Row O/H rate (Over head rate) Description FR To CR
20 B2 Bonus 10 10 B3

33

Enter
Give the name Bonus
Dependency :KRS1(controlling area)
Save
Keep the cursor on overhead structure BIL1
Select assignment button (F5)
Select actual accrual radio button

Valid from valid to overhead structure
1 2008 12 2008 BIL1

Save
Double click on overhead structure BIL1
Keep the cursor on B1
From the menu select Goto calculation base
From cost element 400100
Save
Kept the cursor on B2
From the menu select Goto overhead rate

Valid from Valid to Actual overhead
1 2008 12 2008 10%
Save
From 10 To 10 Crdit B3

Keep the cursor on B3
From the menu select go to credit
Company code :BIL
Business area :BILH
Valid to :12 2008
Cost element :400105
Cost center :Dept Dummy
Save

34

Define CO.no range interval for the business transaction KAZ1-Actual cost Center
accrual:(Transaction Code KANK)

Select maintain group button
Double click on KAZ1- Actual cost center accrual
Select CO.No range interval for BIL check box
From the menu select Edit-Assigned element group
Save

1. Posting of salaries for the month of August F-02

Give the document date end posting date :03.08.2008
Date :03.08.2008
Type :SA
Company code :BIL
Posting key :40
Account no. :400100 Salaries A/c
Enter
Amount :100000
Cost center Dept A
Posting key :50
Account no :200105 SBI current Account
Enter
Amount :*
Business area :BILH
Text :+
From the menu select document Simulate and save

Accrual calculation (KSA3)

35

Accounting – Controlling –Cost element accounting-Actual postings –Accrual
calculation
select cost center radio button
give the cost center : Dept A
period :5
fiscal year :2008
deselect test run check box
select details list check box
Execute
Select next list level button


Give the cost center :Dept A
Posting date :01.08.2008 to 31.08.2008
Execute
Select back arrow
Give the cost center : Dept dummy
Execute

Bonus provision in the year end in FI Transaction F-02

Give the document date & Posting :31.03.2009
Type :SA
Company code :BIL
Posting key :40
Account no. :400105 bonus account
Enter
Amount :10000
Cost center :Dept dummy
Text :Bonus provision for the year 2008-09
Posting key :50
Account :100500 outstanding exp.
Enter
Amount :*
Business area :BILH
Text :+
Document – Simulate and save

Give the cost center :Dept dummy
Posting date :01.04.2008 to 31.03.2009

36

Execute

STATICALLY KEY FIGURES (SKF)

This is used as a basis for allocation of costs from one cost center to other cost
centers.
Eg. Employee / Area/ Telephone calls
(service Dept) (Production departments)
Salaries 500000 No.of employee of A and B
Rent 100000 Sq.meter are of A & B
Telephone Exp25000 No.of telephone calls of A & B
Enter CO. No range interval for the business transaction.

RKS (Enter statistical key figures)
SKF category Fixed Total

Fixed Total
If we choose fixed, values If we choose total
To SKF are common for all months in the We have to enter values for SKF, for each
year, if we don’t make changes in between and every month
Eg: Employee / Area Eg: Telephone calls

No.of Employees No.of Telephone calls
April 2008 100 100 Aprl 2008 1000
May 2008 | | May 1500
June | | June 2000
July | | July
Aug | | Aug
Sep | | Sep
Oct | 150 Oct

Dec | | Dec
Jan.’09 | | Jan 2009
Feb | | Feb
March | | March

37

Define co.no range interval for the business transaction RKS-Enter Statistical key
figures Transaction Code is (KANK )

Double click on RKS
From the menu select Edit Assignment element group.
Save
Ignore the warning message press enter.

Create Statistical key figures

Path :Accounting – Controlling –cost center accounting master Data-Statistical key
figures – Individual processing – Create (Tr.Code is KK01)

Give the statistical key figure :EMP
Enter
Give the Name :Employee
Statistical key figure unit of measurement : Select EA each
Key figure category :Select fixed values under radio button
Save

Path : Accounting –Controlling – Cost Center accounting –actual postings-statistical
key figures-Enter (Tr.code is KB31N)

Received cost center : Dept A
Statistical KF : EMP
Total quantity :500
Received cost center : Dept B
Statistical KF :EMP
Total quantity :250
Save

Period end closing
In the month end, we allocate costs from one cost center to other cost centers

38

(Service department) (Production departments)

Salaries 500000 no.of employee of A and B
Wages 300000 No.of employee of A and B
Rent 50000 Percentage basis

Basis of allocation can be percentage method statistical key figures method /activity type
(machine hour / labour rate)

Allocation methods:
1. Assessment :
A) Transfer primary cost postings and secondary cost postings.
Dpt X Dept C Dept A Dept B
Wages 100000 Salaries 500000 Salaries 400000 Salaries 300000
Wages 300000
Rent 50000 Add all 85500 Add all from C 95000 10%
All from Dept X 100000
---------- ----------- -----------
Less 950000 1255000 395000
===== ======= =======

Allocation
Primary cost postings
Secondary cost postings

B) Receiving cost centers can’t track original cost element Dept A and B will
not show the transfer value –how much salaries wages and rent.
C) Define Co.No.range interval for business transaction RKIU actual
overhead assessment.

2. Distribution
A) Transfer only primary cost postings
B) Receiving cost center can track original cost elements.
C) Sender should be only cost center
D) Define Co.No.range interval for the business transaction RKIV actual
overhead distribution.

3. Periodic reposting:
A) Transfer only primary cost postings
C) Sender can be a cost center or interval order.
D) Define Co.No.range interval for the business truncation.
RKIB periodic reposting.

39

4. Indirect activity allocation.
A)Transfer only primary cost postings.
C) Sender should be only cost center.
D) Transfer quantities as well as values.
E) Define Co.No.range interval for the business truncation.
RKIL Indirect activity allocation .

Which over method we follow, we have to create cycles.

When the allocation basic is different for the cost elements in the cost center, we have to
create number of cycles for number of segments for a cycle.

(Service Department) (Production departments)

Salaries 500000 No.of employees of A and B
Wages 300000 No.of employees of A and B

Option 1:

Cycle 1 Cycle 2
(Salaries and wages allocation) (Rent allocations)
| |
Segment 1 Segment 1
Option 2

Cycle 1
|
----------------------------------------------
| |
Segment1 Segment2
(Salaries and wages allocation) (Rent allocation)

40

ASSESSEMENT

1. Creation secondary cost element : i.e (that is) assessment cost element :

Path: Accounting –Controlling –Cost element accounting-Mater data-Cost
element –Individual processing –Create secondary (KA06)

Enter
Valid from :01.04.2008 to 31.12.9999
Enter
Name and description :Assessment cost element.
Cost element category :42 (Assessment )
Save

2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead
assessment
Use the Truncation code :KANK

Double click on RKIU
From the menu select Edit –Assignment element group.

Creation of assessment cycle:

Accounting –Controlling –Cost center accounting-Period and closing –Current
settings–Define assessment (Tr.code S_ALR_87005742)

41

Give the cycle :BIL1
Start date :01.04.2008
Enter
Text : Assessment cycle
Select iterative check box.
Select iterative check box
Dept C Dept A 60% 300000 54000
Salaries 500000 Dept B 30% 150000 27000
Less :Allocation 500000 Dept Z 10% 50000 9000
--------
0
Add: Allocation 90000
Less :Allocation 90000
-------
0
Add: Allocation 1800

Dept Z
Wages 400000 Dept X 50% 225000 4500
Add: Allocation 50000 Dept Y 30% 135000 2700
--------
450000 Dept C 20% 90000 1800
Less : Allocation 450000
-------
0
====

We have to run number of items to make both cost center values zero. If we select
interactive check box, system will run number of items automatically till both cost center
values become zero.

Select attaché segment button.
Segment name : Segment 1
Description : Salaries allocation
Assessment cost element :select 1000000
Sender rule :select posted amounts
Share in % :100
Select actual value origin radio button
Receiver rule :Select variable portions
Variable portion type :Select actual statistical key figures

42

Select sender / receivers tab
Sender cost center :Dept C
Under Cost element :400100 (Salaries a/c)
Under Receiver cost center group :BILHYDPROD
Select receiver tracing factor tab
Statistical key figure :EMP
Select receiver weight factors tab
Select save button or Crl+S
Select attaché segment button
Segment name segment2
Description :Rent allocation
Assessment cost element :1000000
Sender rules :Posted amount
Sharing in % :100%
Select actual value origin radio button
Select receive rule :Fixed percentages
Select senders/ receivers tab
sender cost center :Dept C
Cost element :400300 (Rent )
Receiver cost center group : BILHYDPROD
Select receiver tracing factor tab
Dept A 70
Dept B 30
Save
Go and see the cost center Report (Tr code is KSB1)

Give the cost center :Dept C
Posting date :01.10.2008 to 31.10.2008
Execute
Select cost element column
Select sub totals button

43

Dept C A B
Salaries 1500000 No.of employees
500 250
100000 50000
70 30
17500 7500

Execution of assessment cycle:

Path :Accounting –Controlling –Cost center accounting –Period end closing-Single
functions-Allocations –Assessment (KSU5)

Give the period :7 (October)
Fiscal year :2008
Deselect text run check box
Select details list check box
Cycle select :BIL1
Execute
Select receiver button

44

INTERNAL ORDERS

This is used to view costs for a specific task.
Eg. A) Vehicle wise running expenses
Management has to task decision whether to sell the (or) keep the vehicle in company

A) petrol expenses for the vehicle B) Repairs to the vehicle

It we take GL accounts in FI –we will not create each vehicle wise petrol expenses and
repairs account.

In cost center accounting –vehicles will be under administration cost center and the petrol
expenses repairs and administration expenses will be posted to administration cost center.

By creating vehicle as an internal order we can get the costs.

B) Telephone expenses:
If we want to know telephone wise expenses in FI –we will have one account for all
telephones.
If we take cost center –It will be entered in administration cost center - We can not
get telephone wise expenses directly.
By creating telephone as an order we can get telephone wise expenses.

C) Production order costs
In a month no. of production orders will be executed. Some production orders
consume more raw material and same production orders consume less raw material.
If FI we have only GL account raw material consumption – We don’t know order
wise consumption.
By crating production order, we can get order wise costs.

D) Exhibition costs
Company is conducting an exhibition

Salesmen salaries One account
Conveyance Different account
Advertisement Different account
Discounts Different account

45

We don't know the exhibition costs by creating an order we can get exhibition costs

Orders will be of 2 types
1)Real orders 2)Statistical orders

Settlement is possible settlement not possible
We can settle order statistical orders are used for
decision making

To Cost Center
(Internal settlement)
From Co to Co
GL Accounts
Assets
(External settlement )
(From CO to FI)
When we transfer from cost center –To cost centers allocation by assessment /
Distribution periodic reposting / Indirect activity allocation.

When we transfer from Internal order settlement.
Eg. Telephone expenses Dr 50000 Cost center Dept
Order Tel no.66110883
To Bank 50000
The cost will be allocation to production
orders from CO
In the production order valuation we can’t take.(50000+50000)
We have to take only one time 50000

When we are posting to no. of cost objects are will be real and others will be statistical.

At the time of order creation there is a statistical order check box.
A) When we select statistical order is statistical order check box.
Order is statistical (Automatically cost center will be real)
B) If we don’t select statistical order check box
Order is real (Automatically cost center will be statistical )

Statistical order :
Telephonewise expenses order we create as statistical order.

Telephone expense Dr 50000 Cost center Dept A
Order Telephone no.66611983 Statistical
To Bank 50000

Cost Center Dept A
Telephone expenses 50000 Allocation to paid order 50000

46

Cost center Dept A – Zero
In the month end we allocation costs from Dept A to production orders there by cost
center Dept A will be zero.

Order telephone no.66611983
Telephone expenses 50000

Management can see telephone wise expense at any point of time afterwards.

Suppose we create order as real order
Telephone expenses Dr 50000 Cost center Dept A
To Bank 50000 order telephone no.66611983 Real

Cost center c data
Telephone Expenses 50000 Order Telephone no.6661987
Telephone expenses 50000 Allocation to production 50000

Order will be zero
In the month end we allocate cost from order telephone no.66611983 to production order
there by order will be zero.

Afterwards management can’t see telephone wise expense.

Creation of order types:

Path : SPR O –Controlling –Internal orders – order master data-Define order types
(KOT2_OPA)

Order category :Select 01 Internal order (Controlling)
Enter
Order type :BILT
Description :Telephone orders for BIL
Planning profile :select 000001 (General budget /plant profile)
Object class :Select Over head cost
Select release immediately check box
Save
We get message no.range not processed
Select assign /change interval button beside no.reage interval

47

Double click order type :BILT
Select motor pool A-ZZZZZZZZZZZZ(External)
From the menu select Edit Assign element group
Save

Creation of filed status group by making cost center and internal order required
entry fields (OBC4)

Select field status variant :BIL
Double click on field status group folder
Select field status group G004 cost accounts
Change the filed status group to G002
Change the text to cost accounts (CC & IO required) IO =Internal order
Enter
Save CC=Cost Center
Double click on G002
Double click on additional account assignment
CO /PP order make it required entry field.
Save

Creation of GL master telephone expense (FS00)

Give the GL account no.400305
Company code :BIL
GL account 400300 Rent account
Company code :BIL
Enter
Change short text and GL a/c long text to Telephone expenses
Select crate / Bank/Interest tab

48

Change the filed status group to G002
Save
Select edit cost element button
Enter
Cost element category :Select 1
Save

Creation of Internal orders:

Path :Accounting –Controlling-Internal orders-Master data-Special functions –Order
–Create (Tr code is KO01)

Order type :Select BILT
Enter
Order no. :BIL 66611983 (Telephone no.)
Description :Telephone order no.66611983
Company code :BIL
Business area :BILH
Select control data tab
Select statistical order check box
Save
One more order
Order type :BILT
Enter
Order :BIL66611984
Description :Telephone order no.66611984
Company code :BIL
Business area :BILH
Select statistical order check box
Save

49

Creation order group

Up to master data the path is same Order group Create (Tr code is KOH1)
Give the order group name :BILHYDTEL
Enter
Description :Hyderabad order group (GRP)for BIL
Select insert order button(Select menu bar Edit Order Insert Order)
Select to orders :BIL66611983
:66611984
Save

Posting of transaction in FI (F-02)

Document date :Today’s date
Type :SA
Company code :BIL
Posting key :40
Account no. :400305 Telephone exp
Enter
Cost center :Dept A
Order :BIL66611983
Text :Telephone expenses
Posting key :50
Account no. :200105 (SBI current account )
Enter
Amount :*
Business area :BILH
Text :+
From the menu select –Document –Simulate and save

To view internal order wise report

Path :Accounting –Controlling-Internal order-Information system-Reports for Interval
orders -Line items –Order -Actual line items-(Tr. Code is KOBI

Give the order no.BIL66611983
Remove the order group

50

Execute
Keep the cursor and telephone expense line item select document button

Planning order wise

Path :Accounting –Controlling –Internal orders –Planning –Cost and activity inputs –
Change (KPF6)
Version :0
From period :8 (November)
To period :8
Fiscal year :2008
Give the order no. :BIL66611983
Cost element :400305 Telephone expense
Select from based radio button
Select view screen button
Total plan cost :75000

To view variant report order wise

Path :Accounting Controlling-Internal order –Information system-Reports for internal
order-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)

Fiscal year :2008
From period :8 (Current month)
To period :8
Pant version :0
Order values :BIL66611983
Execute

Real orders:
They are used for vehiclewise expenses

Petrol expenses Dr 50000 Order no.AP9Z1234

51

To Bank 50000

In the month end:
Cost center Dept A
Order no.AP9Z1234 Settle to Cost center Dept B
Cost center Dept C
Settlement can be percentage basis / ratio basis /Amount basis

Order No AP9A1234
Petrol expenses 50000 Allocation Dept A 25000
Dept B 15000
Dept C 10000
------- ------
50000 50000
==== ====

Order will be zero

Petrol expense Dr 50000 Cost center:Common
Order No.AP9Z1234 Statistical
To Bank 50000

In the month end from cost center common allocate to Dept A, Dept B and Dept C by
assessment / Distribution / Periodic posting /Direct activity allocation.

Cost center common
Petrol Expenses 50000 Allocation to Dept A 25000
Dept B 15000
Dept C 10000
--------- -------
50000 50000
==== =====
Cost center will be zero

Order no.AP9Z1234
Petrol expense 50000
=====

Management can see vehicle wise expenses at any point of item afterwards.

Creation of filed status group by making only internal order required entry filed
(OBC4)

52

Select filed status variant :BIL
Double click on filed status group folder
Select field status group G002
Change field status group to G010
Change the text to cost accounts (IO required )
Enter and save
Double click on G010
Double cock additional account assignments
Cost center make it optional entry field
Save

Creation of GL master petrol expense under administration group (FS00)

Give the GL Account no. :400310
Company code :BIL
Give the GL account no.400300 Rent account
Company code :BIL
Enter
Change short text and long text to petrol expenses
Select create/bank /interest tab
Field status group :G010
Save
Enter
Cost element category :01
Save

Creation of secondary cost element i.e. Statement cost element (KA06):

53

Give the cost element :1000001
Enter
Name and description settlement cost element
Cost element category :Select 21 internal settlement
Save

Maintain allocation structure:

Path :SPRO-Controlling –Internal orders-Actual posting- Settlement-Maintain
allocation structures

Allocation structure :B1
Text :BIL allocation structure
Save
Select :B1
Double click assignments folders
Assignment :01
Text :Vehicle expenses settlement
Save
Select :01
Double click on source folder
From cost element :400310 Petrol expenses
Save
Double click on settlement cost elements folder
Receiver category :Select CTR cost center
Settlement cost element :1000001
Save

54

Petrol expenses will be settled to cost center by using secondary cost element settlement
cost element.
Through orders.

Maintain settlement profiles:

Same path

Double click on maintain settlement profiles
Settlement profiles :BIL1
Description :BIL settlement profile
Select to be settled in full radio button
Double click on CTR cost center
Select % settlement check box
Select equivalence number check box
Select amount settlement check box
Under valid receivers
For cost center :Select settlement required
Max.no. distribution rules :999
Residence time :12 months
Save

Rule 1:
Order no.AP9Z1234 settle cost center Dept A 30000
Petrol expenses 50000 settle cost center Dept B 15000
Dept C 5000

Rule 2
Order No.AP9Z1234 Settle to cost center Dept A 85%
Petrol expenses 50000 Settle to cost center Dept B 10%
5%
Order no.AP9Z1234 settle to cost center Dept 4:
Petrol exp 50000 Dept 3:
Dept 1:

55

Maintain number range for settlement documents:
Go through Same path (Tr.code is SNUM)

Double click on controlling area BIL
Select Standard accounting document check box
From the menu select Edit Assign element group
Save

Creation of order type (KOT2_OPA)

Order category :Select 01 Internal order (controlling)
Enter
Give the order type :BILV Vehicle order type BIL
Settlement profile :BIL1
Budget profile :0000001 (General budget profile)
Object class select :Overhead costs
Select release immediately check box
Save
Ignore the message press enter save in your request
Select assign /Change intervals button beside no.range interval
Double click on BILV
Select motor pool A-ZZZZZZZZZZZZZZ external check box
From the menu select Edit –Assign element group.
Save

Define co.no.range interval for the business truncation K0A0-Actual settlement. Use
the transactions code (KANK)


56

Double click on KOAO actual settlement
Select co.no.range interval for BIL check box
Form the menu select Edit –Assign element group.
Save

END USER AREA:

Creation of internal order (KO01)
Give the order type :BILV
Enter
Give the order :AP9Z1234
Description :Vehicle no.AP9Z1234
Company code :BIL
Business area :BILH
Deselect statistical order check box
Select settlement rule button
Category :CTR cost center
Settlement receiver :Dept A
Give the percentage :70
One more
Category :CTR
Settlement receiver :Dept B
Percentage :30
Save

Posting of petrol exp F-02

Type :SA
Company cod :BIL
Posting key :40

57

Account no. :400310 petrol exp.
Enter
Give the order no. :AP9Z1234
Text :Petrol exp.
Posting key :50
Account no. :200105 SBI current account
Enter
Amount :*
Business area :BILH
Text :+
From the menu select menu document –Simulate and save

Actual settlement :

Path :Accounting –Controlling-Internal order-Period end closing-Single functions-
Settlement –Individual processing (K088)

Give the order :AP9Z1234
Settlement period :8 (current month)
Fiscal year :2008
Deselect test run check box
Select check transaction date check box
Select details list button

Note : Order means overall expenses Eg: Vehicle Expenses

Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs,
Driver salary etc

58

BUDGETING AND AVAILABILITY CONTROL

Planning Budgeting
1. We can plant cost element wise in the 1.Budgeting will be done order wise
order
2. We can do planning period wise in a 2. Budgeting should be done year wise
year (Month wise)
3.Micro level (Lower level) 3. Marco level (High level)
For budgeting SAP has given availability
control
Order no.AP9Z1234
Budget amount 500000

Option 1 Option2 Option 3
Give Give warning Give
Warning To the user Error1
To the user And inform to
Budget manager
If actual amount exceeds 85% of budget 425000
Or
If the variance is above 20000 i.e actual 5200000
Or
Both Whichever activity comes first
Or
If a actual amount exceeds 70% of budget go for option1
If actual amount exceeds 85% of budget go for option 2
If actual amount exceed 100% of budget go for option 3

When we do budgeting it generate a document –We have to give budgeting –No. range
interval only for 04 (Hard coded by SAP)

This is given at client level and not at controlling area level –it is not year specify.

Note : Order Eg.Vehicle Expenses

Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc.,

Maintain no.range for budgeting:

59

Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintain
no.ranges for budgeting (Tr code is OK11)

Select change intervals button

Define tolerance limits for availability control
Same path
Profile :select 000001 General budget profile
Tr.group :++ all activity groups
Action :select 2 waring with mail to person response
Usage :85
Save

Specify exempt cost elements from availability control

Same path

Petrol expenses
Repairs
Drivers salary is Fixed cost

We can specify when we post to driver’s salary all with order AP9Z1234 –Even if, it
exceeds 85% of budget no. message need to be given.

It is known expenditure

Cost element :400100 Salaries account
Save

Maintain budget manager
Same path

Order :BILV

60

Object class :OCost (Overhead cost)
User name :SAP user (budget manager)
Save

Budgeting order wise (END USER AREA)

Path :Accounting-Controlling –Internal order-Budgeting-Original budget –Change
(Tr code is K022)

Order :AP9Z1234
Enter
For the period :500000 (Budget amount)
Over / budget also 500000
From the menu select Extras –Availability: Control –Activate
Save

Posting of petrol expenses (F-02)

Type :SA
Company code :BIL
Posting key :40
Account no. :400310 Petrol expenses
Enter
Order :AP9Z1234
Text :Petrol expense
Posting key :50
Enter
Give the amount :*
Business area :BILH

61

Text :+
From the menu select –Document –Simulate and save

To view in box of the budget manager
Path :SAP Menu Office –Work place (Tr code is SBWP)

Select inbox folder
We get a message accounting document no.

62

PROFIT CENTER ACCOUNTING

This is used to view profitability division wise /product wise /location wise if business
area is not use in FI

Idea scenario

Company FI
|
Company code FI
|
Business area FI
(Location)
|
----------------------------------------------------------------------------------------
| | | |
Steel Cement Pharma Co-profit center
Division Division Division Accounting
| |
Product wise Co profitability
Analysis

Option 1 Option 2
Hyderabad location HYD BGL MOM
| | | |
Steel Cement Pharma Steel cement Pharma

Profitability Profitability Balance sheet

The advantage of profit center accounting is it derives profit center automatically though
derivation rules.
A) In case of expenditure Tough cost centers
B) IN case revenues Automatic account assignment
C) In case of balance Though business area

Sheet it items (Applicable for option 2)
Eg:a) At the time of creation of cost center assign profit center

Dept A-Assign profit center steel

63

b) At the time of posting

wages a/c Dr 500000 Dept A
To Bank 500000
It updates cost center Dept A as well as profit center steel.

We have to create dunning profit center. At the time of posting, when there is no
derivation rules, system updates dummy profit center. Transfer form dummy profit center
to respective center. Create derivation rule so that future transactions will not go to
dummy profit center. They will go to respective profit centers.

Set controlling area (OKKS)

Path :SPRO-Controlling –Profit center accounting-Basic settings-Set controlling area
Enter

Maintain controlling area settings: (OKE5)
(Follow through path )

Path :Up to base settings the path is same- Controlling area settings-Maintain
controlling area settings

Standard hierarchy :BIL
Select elimination of business volume check box
Profit center local currency type :Select 20 Controlling area currency
Select confirm button
Select store truncation currency check box
Save

Elimination of internal business volume

Purchase Material no. 1 Profit center steel
Order Vendor no. 1234
| Plant HYD
| Profit center Steel
| Qty 1 Kg
| Rate 100
Goods
Receipt

It should no take in steel profit center 100+100
It should take only one time

64

Create dummy profit center

Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-Create
dummy profit center(Tr code is KE59)

Double click on dummy profit center
Give the dummy profit center :BIL dummy
Select basic data button
Name :BIL dummy
Description :Dummy profit center for BIL
Profit center group :BIL
Save

Set control parameters for actual date

Path : Up to basis settings the path is same Controlling area settings -Activate direct
postings-Set control parameters for actual data (Tr code is 1KEF)

From year :2008
Select Line items check box
Select online transfer check box
Save

Maintain plan versions

Up to activate the path is same

Plan version Maintain plan version
Select version :0 Plan /Actual Version
Double click on settings for profit center accounting folder
Year :2008
Select online transfer check box
Select line items check box
Exchange rate type :B (bank selling rate)
Save

65


Define no. ranges for local documents

A) At the time of creation of cost center –Assign profit center
Dept A-Assign profit center
B) At the time of posting
Wages A/c 500000 Dept A
To Bank 500000
When there is no derivation rule –It updates dummy profit center
Transfer from dummy profit center
To Profit center steel

No co document will be generated once profit center document will be generated
(local)

Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic
settings: Actual –Define number ranges for local documents (Tr code is GB02)

Select actual document from direct posting with GB01 check box
From the menu select interval Maintain
Enter
Select interval button
Year :2008
From no :1
To :100000
Enter and save
Select back arrow
Select planned doc.with direct posting with GB01 check box
Form the menu select interval maintain
Enter

66

Year :2008
From no. :100001
To no. :200000
Enter and save

Creation of profit center:

Path :Accounting-Controlling-Profit center accounting-Master data-Profit
center-Individual processing-Create (Tr code is KE51)

Give the profit center :Steel
Select master data button
Analysis period to :01.04.2008 to 31.12.9999
Name :Steel
Long text :Profit center steel
Person responsible :Mr A
Profit center group :BIL
select activate button (Shift+F1)

One more profit center

profit center cement
select master data button
name :Cement
long text :Profit center cement
person responsible :Mr B
profit center group :BIL
select activate button

Create account groups

up to master data the path is same Account group create (Tr code is KDH1)

Give the account group name :PLITEMS ( Profit & Loss)
Enter
Description :P & L accounts for BIL
Select insert account button
From :300000

67

To :499999
Save
Select Back Arrow
Account groups :BSITEMS
Enter
Description :Balance sheet accounts for BIL
Select insert account button
Form A/c :100000
To A/c :299999
Save

Assign profit center in cost center

Path :Accounting-Controlling-Cost center accounting-Master data-Cost center-
Individual processing-Change (KS02)

Select master data button
Give the profit center :Steel
Cost center :Dept B
Enter
Profit center :Cement
Save

Creation of sales account as revenue element (FS00)

Give the GL account no. :300000 Sales A/c
Company code :BIL
Enter
Cost element category :Select 11 Revenues

68

Save

Maintain automatic account assignment of revenue elements

Path :SPRO-Controlling –Profit center accounting –Actual postings-Maintain
automatic account assignment of revenue elements (Tr code is OKB9)

Company code :BIL
Cost element :300000 Sales A/c
Account assignment details :Select 2 Business area is mandatory
Save
Select :BIL with cost element 300000
Double click on detail per business area /valuation area folder

Option 1 Option 2
HYD location
|
Steel cement Pharma HYD BGL MUM
300000 | | |
HYD Steel Steel Cement Pharma
300001 Sales cement 300000 Sales account
HYD Cement
300002 Sales pharma HYD Steel
HYD Pharma BGL Cement
Mum Pharma

Business area : BILH
Profit center : Steel
Business area : BILB
Profit center : Cement
Save

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option

69

Same path Select choose accounts (Tr code is 3KEH)

select new entries button
Account from :100000
Account to :299999
Default profit center :Steel
Save
Select profit center determination button
Select crate step button
Step description :Profit center derivation though business area for balance sheet
items.
Select drop down button under name column
Select GSBER businesses area
Save
Select maintain rule values button
Select source field intervals on /off button
Account no.100000
To account no.299999
Business area :BILH
Profit center :Steel
Account no :100000
To account no. :299999
Business area :BILB
profit center :Cement
Save

END USER AREA
1) Planning profit center wise for p & L items

Path :Accounting –Controlling –Profit center accounting –Planning –cost
/Revenues-Change (Tr code is 7KE1)

70

Version select :0
From period :8
To period :8
Fiscal year :2008
Company code :BIL
Account group :PLITES
Per account no.300000 Sales account
Profit center reporting currency :600000 (Minus report currency)
For account no.400100 salaries A/c without any sign
Save

Planning profit center wise for balance sheet items (Only for second scenario)

Up to planning the path is same Balance sheet accounts change (Tr code is
7KE3)

Version :0
From period :8
To period :8
Fiscal year :2008
Company code :BIL
select next page or page down button
Profit center steel
Account group :BSITEMS
For account :100300 SBI rupee term loan
Profit center reposting currency 20000- with minus sign

71

For 200105 SBI current account profit centers reporting currency 200000 without any
sign
Save

Posting of cash sales (F-02)

Type :SA
Company code :BIL
Posting key :40
Account no. :200105 (SBI current account)
Enter
Amount :550000
Business area :BILH
Text :sales posting
Posting key :50
Account no. :300000 (Sales a/c)
Enter
Amount :*
Business area :BILH
Text :+
Form the menu select Document –Simulate and save

Posting of salaries (F-02)

Document date :Today’s date
Type :SA
Company code :BIL
Posting key :40
Account no. :400100 Salaries a/c
Enter

72

Cost center :Dept A
Posting key :50
Enter
Amount :*
Business area :BILH
Text :+
Document –simulate and save

To View variance report profit center wise for P & L items

Path :Accounting –Controlling –Profit center accounting-Information system-
Repost for profit center accounting-Interactive reporting –Profit center group:Plan
/actual /variance (Tr code is S_ALR_87013326)

From period :8 (Current /Running month)
To period :8
Fiscal year :2008
Plan version :0
Profit center values :steel
Profit center accounts groups :PLITEMS

To view variance report profit center wise for balance sheet items:

Up to interactive reporting the path is same Profit center group: Balance sheet
accounts plant / Actual /Variance (Tr code S_ALR_87013336)

From period :8 (Running month)
To period :8
Fiscal year :2008
Plan version :0
Profit center values :Steel
Balance sheet account group :BSITEMS

73

Execute

Transfer of values from one profit center to another profit center
One cost center works for no.of profit centers we an assign only one profit center is
cost center.
In dept A Profit center steel
From profit center steel transfer to cement
Manual transfer through cycles

No.FI document will be generated
No.CO document will be generated
Only profit center document will be generated.

Path :Accounting –Controlling-Profit center accounting-Actual postings-Profit
center document –Enter (Tr code is 9KE0)

Layout select 8A-001 document :Profit center /account
Company code :BIL
Select Enter screen button
Account no. :400100 Salaries
In profit center local currency 500000 –(with minus sign)
Account no. :400100 Salaries
Amount :500000 (without minus sign)
Save

74

INTEGRATION

Organization structure :

FI: Business area

Company
|
Company code
MM:- Structure SD: Structure

Business area | Factory / Sales organization Company code level /
| Plants Branch/Port | Regional location
| | |
Storage locations Raw material / Finished goods Distribution-> Direct sales through
/Packing material Channel Agents
| |
Division Product groups/
products

Why we create port as a plant:

Keep the material on ship
HYD Chennai Customer
Factory Port

Export sale – Terms of delivery-FOB (Free on Board) ownership will be transferred once
we kept the martial on ship.

Business area will be assigned to plants, plants will be assigned to sales organization
business area will be assigned to sales organizations.

In SD module, combination of sales organization, distribution channel and division –One
sales area.

Sales Area 1 Sales Area 2
Hyd sales Org. Hyd Sales org
| |

75

Direct sales Through agents
| |
Steel Steel

Movement types: Similar to posting keys in FI
101 Material receipt against purchase order /production order
102/122 Reversal of 101
201 Issue to cost centers
202 Reversal of 201
261 Issue to orders
262 Reversal of 261
521 Production receipt without production orders.
522 Reversal of 521
561 Opening stocks taking
562 Reversal of 561
601 Delivery (sales)
602 Reversal of 601

Difference between 201 and 261

Cost centers Dept A Dept B Dept C
Issue material Production order 1
(Movement type 261)

Stores items to issue Production order 2
(Mov.type 201)
(cost center 201) Production order 3

Material issue is identifiable to production orders use movement type 261
Material issue is not identifiable to production orders use movement type 201

Transaction key /process key

a) BSX Inventory postings
b) WRX Goods receipt /Invoice receipt (GR/IR)
c) PRD Price difference /Production order differences
d) GBB Offsetting entry for inventory postings
(i) VBR consumption
(ii) VNG Scrapping
(iii) BSA Opening stocks
(iv) ZOF Production receipt without production order
(v) AUF Production receipt with production order
(vi) VAY Delivery where sales account is created as revenue
element (CO implemented)
(vii) VAX Delivery where sales account is not created as revenue
element (Co not implemented)

76

(viii) AUA production order differences

Eg: 400000 Raw material consumption
200121 Inventory raw material

For consumption
Raw material consumption Dr
To Inventory raw material

For GBB VBR Assign account no.400000
For BSX Assign account no.200121

Valuation class:
Valuation class determines the GL accounts to be posted automatically.
A) Raw materials Local
Imported
Inter unit purchases
Inter company purchases 4
Valuation class
B) Stores :Local 2 valuation class
C) Finished goods own manufacturing 1 valuation class

Valuation grouping code / valuation modifier /Valuation modification key:

Company codes BIL BCL BSL
Chart of accounts BIL
Plants HYD-BGL BGL-MUM HYD-MUM
Local raw materials RM1 RM2 RM3-RM1 RM2-RM3

Incase of purchases, 200121 –Inventory raw material local

When we follow same chart of accounts for numbers of company codes, Instead of
assigning accounts number of times, assign only one time by using valuation grouping
code.

Valuation Chat of accounts Company code Valuation
Areas Plants Grouping

HYD BIL BIL X
BGL BIL BIL X
BGL BIL BCL X
MUM BIL BCL X
HYD BIL BSL X
MUM BIL BSL X

77

For X in case of RM local purchases assign account number 200121, inventory Raw
material local.

This is similar to posting periods in FI

A) Define posting period variant X
B) Assign posting period variant to company codes X to BIL
X to BCL
X to BSL
c) Define posting periods for variant X
for X—1, 2008 –12,2008

Material types Price controls

Raw materials ROH V-Moving average price purchase price
Stores & spares ERSA V-Moving average price purchase price
Packing & material VERP V-Moving average price purchase price
Finishing goods FERT S-Standard price Raw materials +
Semi finished goods HALB Overheads
Purchased V-Moving average price Purchase price
Produced S-Standard price Raw material+Overheads
Trading goods HAWA V-Moving average price Purchase price
Services DIEN

Semi finished goods purchased
Dept A Dept B Dept C Dept D
15 days FG
Sales order –To be delivered with in 2 days
Purchase an item where with
In 2 days purchase an item
Where processing of A,B and
C is completed
D processing of D
Semi finished goods produced
Issue RM 15 days time
Sales Dept –got an order for sale where the processing of A and B is
completed
Take production
After completion
Of B and sell
Trading goods: Purchase FG and sell FG without doing any processing.
Services: Plant is having operating capacity
No sales orders
Job work for others

78

We get job work changes –Material
Does not belong to us
- Material types are similar to account groups in FI
- There we create GL masters here we create material masters.
- GL master are created under account group where as material masters are
created under material type.
- Material master is created at plant level-when number of plants are using
the same material it will be extended(copied) to other plants.
- For materials we can open 2 periods at a time.
Oct Nov.
When we open Dec.-Automatically Oct will be closed.
Where we crate material master –We will have number of tabs (Views)
Basic data
Purchase view
Sales view
MRP view
Quality
Ware house management
Accounting
Costing

MM Flow
A) Material requisition By production Dept to Stores
B) Purchases requisition By stores to purchases
C) Call for enquiries, Get quotations and do price comparisons By purchase Dept.
D) Create purchase order Vendor number, Material
Quality, Rate, Plant, Company code
Delivery terms, payment terms,
Purchase organization
E) Release It is optional
It will work through work flow

If P.O value is less than Rs.10000 To be released by manager purchases

If P.O value is Rs.10000 and above To be released by GM(Purchases)
And less than 100000 if P.O value is
10000 and above To be released by Director

Once we save the purchase order, based on the value it goes to the inbox of the command
authorized person, till is releases we can’t take goods receipt.

F) Goods receipt –With reference to P.O
Inventory RM local DR 100
To GR/IR clearing RM local 100
Balance sheet current asset BSX
Balance sheet current liability WRX

79

(Qty in GR*Rate as per P.O)

G) Invoice verification-Against PO/GR
GR/IR clearing RM local DR 100 Balance sheet CL WRX
To party 100 Balance sheet CL From PO,
Party no. will be taken
i) Raw material consumption
RM Consumption Local DR 100 P & L Debit GBB VBR
To inventory RM local 100 BS C/A(Current Asset) BSX
J) Wages payment
Wages A/c DR 20 P & L Debit
To Bank 20 BS CA
K) Production Receipt At product cost

Inventory FG DR 120 BS C/A BSX
(FG =Finished goods)
To INC/DEC in stocks FG 120 P & L Credit GBB

ZOF – In case of on production order /CPP module not implement GBB
AUF –in case of production order (PP module implemented)
SD steps

L) Delivery –At product cost
INC /DEC in stocks FG DR 120 P & L Credit
GBB VAX –If sales account is not created as revenue element (Co not implemented
/GBB VAY –If sales account is created as revenue element (Co Implemented)
To Inventory FG 120 BS C/A

M) Sales billing

Customer A/c DR 150 BS C/A From sales order, customer number will be
taken
To Sales 150 P & L credit ERL
LCL=Local
Inventory FG=Raw material consumption local +wages
GR=Goods receipt
INC/DEC STK FG=Increase /Decrease stock finished goods

P & L account

H) RM can local 100 L)Sales 150
Wages 20 J)INC/DEC STKFG 120
Net profit 30 K)INC DEC STK FG -120 0
------- -----
150 150
=== ===

80

Balance Sheet

Surplus in P & L Account 30 F) INV RM LCL 100
F) GR/IR CLG RM LCL 100 H) INV RM LCL -100
E) GR/IR CLRG RM LCL -100 0 ---------
0
a) Sundry creditors RM 100 I) Bank -20
j) INV FG 120
K)INV FG -120 0
L)Sundry debtors 150
---- --------
130 130
=== ===
Integration rules

A) In material master we specify valuation class
B) For valuation class we assign GL accounts based on the nature of transaction
C) At the time of material receipt/Issue stores person enters movement type, material
number and quantity. Our accounts will be up dated automatically based on
accounts assignment to valuation class which is specified in material master

Eg: Material no. Valuation Inventory postings GR/IR Consumption
BSX Clearing (GBB VBR)
(WRX)
RM1 (local) 3000 RM local 200121-INV-RM 100520-GR/IR 40000-RM
Local CLRG RM LOCAL Consumption-
IMP
Local Raw Material
1. Purchase order Material –RM1
Vendor -1234
Qty-100 Kgs
Rate 5 Rs Save P.O.No.1
2. Goods receipt with reference to P.O-P.O No.1
Movement Type:101 Debit BSX 200121
Credit WRX
Material RM1
Qty 60 kgs
Save

Material Doc no.200001
200121 –Inventory RM local DR 300
100520 GR/IR CLR RM Local 300
(Qty IN GR *Rate as per P.O)
60*5

81

Raw material consumption

Movement type 201 Debit GBB VBR Debit A/c No. 400000
Credit BSX 200121
Material RM1 3000
Qty 10 Kgs
400000 RM Consumption LCL DR 50
200121 Inventory RM Local 50
(Qty issued * Moving average rate)

Imported raw material

1. Purchase order Material -RM2
Vendor -4567
Qty-1Kg
Rate -100 PO No.2
2. Goods receipt- with reference to PO-PO No.2
Movement type:101 Debit BSX 200122
Credit WRX 100521
Martial RM2 3001
Qty 1 Kg
Save Material Doc No.200003
200122- Inventory RM IMP DR 100
100521 GR/IR CLRG RM IMP 100
(Qty IN GR* Bate as per P.O)
1*100

Raw material returns
Material doc no.200003

Movement Type 102 Debit WRX 100521
Credit BSX 100122
Material RM2 3001
Qty 1 Kg
Save Material doc no.200004
100521 GR/IR CLR RM IMP DR 100
200122 Inventory RM IMP 100

Why SAP does not support purchase accounting why it supports inventory
accounting:

RM –Local raw material 1 2 3
Not included in purchase Bill received Less stock reported
Provision statement by stores
RM consumption=Qty Value
Opening stock 0 0 0 0

82

Add purchase 0 516.50 516.50
_____________________________
516.50 516.50
Less :Closing stock 300 300 200
------------------------------------------
Raw material consumption X X X
========================
Wrong wrong wrong
1. Purchase order material no. RM1
Vendor 1234
Qty 100 Kgs
Rate 5 Rs
Excise 10%
CST 2%
Other change 1%
Material receipt:

We get excise invoice to claim cenvat –Final invoice many come or may not come.
Only excise invoice received
Basic price 500
Excise 50
Stores person updates his records with the above data.

Issue: Not included in purchase provision statement:
Account Dep gets a statement from stores in the month end material received bills not
received to make purchase provision.
Stores person –By mistake he has not included the above item in the purchase provision
statement.
Account Dept.gets closing stock statement from stores-in the statement he is showing 60
kgs stock at 5Rs.300

Issue2 –Closing stock valuation wrong
We have received invoice after words in invoice

wrong
Basic 500 500
Excise 50 50
CST2% 11 11
Other 1% 5.5 5.5
------- -------- ---
Bill amount 566.50 516.50 50

Purchase a/c cenvat receivable
In the month end stores person sends closing stock statement
60 kgs at Rs.5
Should be value 516.5/100*60=309

83

*Issue less stock reported by stores
If this month production is more, profitability will be more.
If this month production is less, profitability will be less.
Physical stock available -60 Kgs
Reporting to accounts only 40 kgs
40*5=200
Inventory accounting

1. Purchase order Material no.RM1
Vendor 1234
Qty 100
Rate 5
Tax code A1 (10% Excise +2% CST) other charges 1%
PO no.1
2. Goods receipt with reference to PO no.1
Movement type 101
Material RM1
Qty 100
Save

Entry will be passed automatically
Inventory RM local DR 516.50
To GR/IR CLR RM Local 516.50 Qty in
GR*Rate as per PO

Store records : Material RM1
Qty :Value
Receipt :100 Kgs 516.50
Account records 200121 Inventory RM local
516.50 DR
3. Raw material consumption
Movement type 201
Material RM1
Qty 40 Kgs
Save

Accounting entry will be generated automatically RM consumption local DR
206.5 (516.5) 100*40
To Inventory RM local 206.6
Qty issued moving .AVG price

Stores records: Material RM1
Qty Value
Receipt 100 Kgs 516.50
Issue 40 Kgs 206.6

84

------ ------
60 Kgs 309.9

Accounts records 200121 Inventory RM local
516.50 DR 206.60 DR
CL stock value 309.9

Price differences are two types
1)Batch method 2)Moving average method
|
-------------------------------------------------------
| | |
Stock fully available Stock partly available Stock no available

1st method –Batch method:
RM1 PO PR 10 RS BILL for 12Rs

1.Material Receipt
Batch Qty Rate Amount Inv RM local DR 1000 BSX
1 100 10 1000 To GR/IR CLR RM LCL/100 WRX
2 50 40 2000 2. Raw Material consumption
----- ----- RM consumption local DR 100 GBB VBR
150 3000 To INV RM local 100 BSX
10 10 100
--- ----
140 2900 3. Invoice verification
180 GR/IR CLRG RM LCR DR 100 WRX
----- ----- INV RM LOCAL DR 180 BSX 90*2
140 3080 Price diff RM LCL 20 PRD 100*2
To Vendor 1200 form PO vendor no. is
taken
Break up
1 90 12 1080
2 50 40 2000
Preparation in P & L account :
Raw material consumption :
Raw material consumption +/ price difference RM
Eg: RMC 100
PD RM 20
----
120
===
For the truncation key PRD –We can assign raw material consumption account or price
difference RM A/c

85

Moving average method: stock fully available

RM1 PO Price :10 Final Bill for Rs.12

Qty rate amount 1. Goods receipt

Bill qty 100 10 1000 Inv.RM local DR 1000 BSX
50 40 2000 To GR/IR CLRG RM LCL 1000
---- ------ 2. Raw material consumption
150 3000 RM consumption local DR 400 GBB VBR
20 20 400 To INV RM local 400 BSX
---- -----
Average bill 130 2600 3.Invoice verification
GR/IR CLRG RM LCL DR 1000 WRX
200 GR/IR CLRG RM LCL DR 1000 WRX
---- -----
130 2800 INV RM Local DR 200 BSX 100*2
To Vendor 1200 form PO Vendor no.is
taken

Consumption rate:
Value / Qty 3000/150=20
Next consumption rate
Value / Qty 2800/130=21.54

3rd method moving average method: Stocks partly available

RM1 PO Price 10Rs Bill for 12Rs
1.Material receipt

Qty Rate Amount 1. Goods receipt
Bill qty 100 10 1000 INV RM local DR 1000 BSX
50 40 2000 To GR/IR CLRG RM 1000 WRX
--- -----
150 3000
130 20 2600 2. Raw material consumption
----- ------ RM comp local DR 2600 GBB VBR

86

AVBL QTY 20 400
40 TO inv RM local 2600 BSX
---- ----
20 440
3.Invoice verification
GR/IR CLR RM LCL DR 1000 WRX
INV RM Local Dr 40 BSX 20 *2
Price diff RM DR 160 PDR
To Vendor 1200 from PO
vendor no.is taken
Consumption rate
Value / Qty 30000/150=20

Next consumption rate:
Value qty 440/20=22.00
Incase of batch method –It has checked batch wise for the material.
In case of moving average method –if has checked material wise.
4th Method-moving average method: Stocks not available safety socks

RM1 PO Price 10 Rs Bill for Rs12
1. Material receipt
Qty Rate Amount Inv RM local DR 1000 BSX
Bill Qty 100 10 1000 To GR/IR CLRG RM LCL 1000WRX
50 40 2000 2. Raw material consumption
---- ---- ------ RM Consume local DR 3000 GBB VBR
150 3000
150 20 3000 To INV RM Local
---- ----- 3. Invoice verification
AVBL Qty 0 0 GR/IR CLRG RM LCL DR 1000 WRX
Price Diff RM DR 200
To Vendor 1200 form PO vendor no.is taken

Sales and Distribution Flow:

1. Inquiry and quotation:
2. Sales order : Product, Plant, Sales organization, customer no., quantity, rate
delivery
terms, payment terms.
3. Delivery :With reference to sales order
A) Delivery without post goods issue (Delivery without PGI) ownership is
not transferred.
Eg. Export sales –Terms of delivery –FOB (Free on board)

Hyderabad Factory Chennai Port Customer
Delivery without PGI Delivery with PGI

87

No FI document only FI document material
material document document

FI document :At product cost

Increase /Decrease in stocks FG DR GBB VAY-If sales account is created as
revenue element (Co implemented)1

GBB VAX if sales account is not created as revenue element (Co not
implemented)
To inventory FG BSX

B) Delivery with Post Goods Issue (Delivery with PGI)
Eg. Local sales terms of delivery –Ex works
Hyderabad factory Customer
Delivery with PGI
Sales Billing: With reference to delivery

Customer account DR From sales order
To Sales :ERL
SD-Pricing procedure

Eg: 1 2 3 4
From R egion Andhra Andhra Andhra Andhra
To Region Andhra Tamilnadu Andhra Tamilnadu
Customer Taxable Taxable Non-taxable Non-taxable
Material Taxable Taxable Non-taxable Non-taxable

Basic price
Excise % on basic
VAT % on Basic+Excise CST % on basic+ Excise

From H sales

Condition type: KOFI (Account assignment-FI)
KOFK (Account Assignment –CO)

Assignment of accounts

1 2 3 4 5 6 7 8
Application Conditi Chat Sales Account Account Accou
area on type of originatio assignment assignment nt keys

88

accoun n group for group for
ts customers materials
V-Sales & KOFI BIL HYD 01 03 ERL 300001 –
Distribution Sales Local
own goods
V-Sales & KOFI BIL HYD 02 03 ERL 300002-
Distribution Sales
exports own
goods
V-Sales & KOFI BIL HYD 01 01 ERF 300003
Distribution Sales local
trading
goods
V-Sales & KOFI BIL HYD 01 03 ERL 400350 –
Distribution Sales Freight
revenu Local own
e goods
01- 01 Traded ERF
Domestic goods Freight
revenues Reven
ues
02-Foreign 02 Services ERB-
revenues Rebate
s
/Tradi
ng
Discou
nts
03- 03 ERS
Afflicated Finished Sales
company goods Deduct
revenues ions

Note :ERS :Sales commission

Bank 5000 From customer 5000
Reimbursement of expenses

MM CUSTOMIZATION

MM consultant job

1. Define Plants

89

Path: SPRO-Enterprise structure- Definition –Logistic general-Define copy,
delete check plant.

Double click on define plant
Plant :BILP
Name :BIL HYD Factory plant
Factory calendar :Select B2 or 01 (B2=BIL HYD Factory Calendar)
Save (01=Standard calendar)
Give the name :BIL Hyderabad factory plant
Country :IN
Enter
Short description :MM customization for BIL
Press enter
Enter once again to save in the request

Define division:

Path :Up to logistic –General the path is same-Define copy, Delete, check
division.

Double click on define division
Division :BS (It is a text filed)
Name :Steel Division
Save

Maintain storage location

Path :SPRO-Enterprise structure –Definition- materials management –
Maintain storage location (OX09)

Give the plant :BILP
Enter

90

Give the storage location :HYD
Description :Hyderabad storage location
Save

Maintain purchasing organization
Same path

Purchase organization :BIR
Description :BIL Purchase organization
Save

Assign plant to company code:

Path : SPRO-Enterprise structure –Assignment- logistics General –Assign
plant to company code ( Tr code is OX18)

Company code :BIL
Plant :BILP
Save

Assign business area to plant/valuation area and division

Path :Same path -Select plant /valuation area –Division button

Plant :BILP
Division :BS
Business area :BILH
Save

91


Assign purchasing organization to company code

Path :Up to assignment the path is same –Materials management –Assign
purchasing organization to company code

Select position button :Give the purchase org:BILR
Enter
For BILR for assign company code BIL
Save

Assign purchasing organization to plant:

Same path
Purchasing org :BILR
Plant :BILP
Save

Create purchasing groups

Path :SPRO-Materials management –Purchasing –Create purchasing groups.

Purchasing group :BIL
Description :BIL RM purchasing group
Save
Press entr to save in your request

Define material groups:( OMSF)

Path :SPRO-Logistic general –Material master-Settings for key fields –Define
Material groups.
Material group :BILC
Material groups description :Chemicals

92


Maintain company code for material management:

Path :SPRO-Logistic General –Material master-Basic settings-Maintain
company code for materials management

Give the comp code :BIL
Enter
Year :2008
Period :7 (October)

Note : This period enter carefully, if you once enter not modified

Select ABP check box (ABP stands for Allow Back Period Posting)
Note: September entries allowed
Save

Define attributes of material types:

Path:up to the material master the path is same – Basic settings –Material type-
Define attributes of material types.
Select material type :ROH (Raw materials)
Enter
Select ROH
Double click on quantity / Value updating folder
Valuation area :BILP ( Nothing but plant)
Enter
For BILP select quantity updating, value update check box
Save

93

Select back arrow
Select material FERT for finished product
Double click quantity / value updating folder
Valuation area :BILP
Enter
For BILP select quantity updating check box value updating check box
Save

Set tolerance limits for price variance for purchase order

Path: SPRO-Material management –Purchasing –Purchase order –set
tolerance limits for price variance

Select TIKY :PE & SE for company code 1000
Enter the company code to BIL
For tolerance key :PE
Enter
Change the company code to :BIL
For tolerance key :SE
Enter and save

Plant parameters:

Path :SPRO-Materials management –Inventories management –Physical
inventory –Plant parameters

Select plant :1000
Change the plant to BILP
Enter and save

94

Set tolerance limits for goods receipt

Path :Up to inventory management and physical inventory the path is same -
Goods receipt-Set tolerance limits

Select tolerance key B1,B2,VP for company code 1000
Change the company code to BIL for B1
Enter
Change the company code BIL for B2
Enter
Change the company code to BIL for VP
Enter and save

Maintain default values for tax codes

Path: SPRO- Materials management –Logistics invoice verification-Incoming
invoice maintain default values for tax codes

Company code :BIL
Save

Set tolerance units for invoice verification

Path:Up to logistics invoice verification the path is same – Invoice block-Set
tolerance limits

select tolerance key BD, ST for company code 1000
select copy as button
change the company code to BIL for BD
enter
change the company code to BIL for ST
save

Define automatic status change

95

Path :Up to the logistic invoice verification the path is same – Invoice
verification in back ground –Define automatic status change

Company code :BIL

Group together valuation areas:

Path :SPRO-Material management –Valuation and account assignment-
Account determination-Account determination without wizard-Group
togather valuation areas.

Valuation :BILP
Enter
Give the valuation grouping code :X
Save

Define valuation classes:

Path :Same path – Select valuation class button

Select valuation class 3000 Raw materials local
Select valuation class 7920 Finished products
Change valuation class 3000 to BIL1
Change the description to Raw materials local
Change valuation class 7920 to BIL2 – Finished product
Enter and save

96

FI consultants job:

1. Creation of GL masters FS00
A) Inventory RM local Current assets loans & advances
B) Inventory finished goods -do-
C) GR/IR clearing RM local Current liabilities & Provisions
D) RM consumption local RM Consumption
E) INC/DEC in stocks FG Increase /Dec in stocks

Give the GL account no. 200121
Company code BIL
Give the GL account no.200120 Inventory RM
Company code :BIL
Enter
Change the short text to Inventory RM local
Change the GL a/c long text also inventory RM local
Tax category :select * (All tax allowed)
Select posting without tax allowed check box
Select create/Bank/Interest tab
Field status group change to G006 Material accounts
Save
Note :Before post select automatically only check box 200121
GL account no. :200122
Company code :BIL
Give the GL a/c no.200121
Company code :BIL
Enter
Select type/description tab
Change short text and GL a/c long text to inventory FG
Save

97

GL account :100520
Company code :BIL
GL account :100500 outstanding exp.
Company code :BIL
Enter
Change short text and GL account and long text to GR/IR clearing RM local
Tax category :*
Select posting without tax allowed check
Sort key :014 Purchase order
Select create /bank /interest tab
Field status group change to G045 goods/Invoice received clearing accounts
Save
G/L account :400000
Company code :BIL
Give the GL account no.400100 Salaries a/c
Company code :BIL
Enter
Select type/description tab
Change the account group to RM consumption
Change short text and GL account long text to RM consumption local
Field status group to change to G003 Material consumption accounts
Save
Enter
Cost element category :Select 01
Save

98

GL account :300200
Company code :BIL
Change the GL a/c no.300100 Exchange gain
Company code :BIL
Enter
Select type/Description tab
Change account group to Increase /Decrease stocks
Change short text and GL account long text to Increase/Decrease in stocks FG
Select create/Bank/Interest tab
Change field status group to G030 change in stock accounts
Save

*Assignment of accounts for automatic postings

Path :Up to account determination without wizard the path is same – Configure
automatic postings (Tr code is OBYC) (MM to FI Integration )

Select cancel button
Select account assignment button

Double click on transaction BSX inventory posting
Give your Chart of Accounts :BIL
enter
Select valuation modifier check box
Select valuation class check box
Save

Valuation modified Valuation class Account
X BIL1 RM local 200121 Inventory RM local
X BIL2 Finished products 200122 Inventory FG
Save

99

Select back arrow
Double click on transaction WRX GR/IR clearing account
Select valuation modifier check box
Select valuation class check box
Save
Valuation modifier :X
Valuation class :BIL1 RM local
Account no. :100520 GR/IR clearing local
Save
Select back arrow
Double click on GBB offsetting entry for Inventory posting
Select General modification check box
Valuation modifier check box
Valuation class check box
Save

Valuation General modification Valuation class Account
modifier
X VBR (consumption) BIL1 RM local 400000 RM
consumption local
X ZOF (Production receipt BIL2 Finished 300200 Increase /
without production order) products Decrease stocks FG
X AUF with production BIL2 300200
X VAY (Delivery where BIL2 300200
sales account is created as
revenue element
Co implemented)
X VAX Delivery where is BIL2 300200
sales account is not created
as revenue element
CO not implemented
Save

100

Document types and no.ranges (OBA7)
WE :Goods receipt
WA :Goods issue
RE :Grass invoice receipt

Tr code is OBA7

Select WE :Goods receipt
Number rage :50
Select number range information button
Company code :BIL
No.range :50
Year :2008
From no. :800001
To no. :900000
Enter and save
Select back arrow 3 times
Select type WA Goods issue
Number range :49
Select no.range information button
Company code :BIL
No.range :49
Year :2008
From no. :900001

101

To no. :1000000
Enter and save
Select back arrow three times
Select RE gross invoice receipt
No. range :51
Select no.range information button
Company code :BIL
No.range :51
Year :2008
From no. :1000001
To no. :1100000
Enter and save

MM end user area
Creation of vendor master XK01

Purchasing organization :BILR
Account group :BIL2 MM vendors for BIL
Enter
Give the name :Nagarjuna Steels Limited
Country :IN
Select next screen button 3 times
Reconciliation account :select 100501 Sundry credit RM
Sort key :012 vendor
Select next screen button
Payment terms :0001

102

Select next screen button 2 times
Order currency :INR
Select GR based invoice verification check box
Save

Creation of RM material master

Path :Logistics –Materials management –Material master-material-
Create(Genral) –Immediately (Transaction code MM01)

Material :BILRM1
Industry sector :Mechanical engineering
Material type :Raw material
Press select views button
Select basic data1, purchasing, general plant data/storage1/accounting1
Select organization levels button (bottom side)
Storage location :HYD
Enter
Give the description :Raw material 1
Basic unit of measurement :KG
Material group :BILC (Chemicals)
Division :BS (Steel)
Select purchasing tab
Select accounting one tab
Valuation class :select BIL1 (RM local)
Price control :select V moving average price
Moving price :50

To open material periods for November:

103

Up to material master the path is same –Other-Close period (Transaction code
is MMPV)

From company code :BIL
Give the period :8 (November)
Fiscal year :2008
Select check and close period radio button
Execute

Purchase order creation

Path :Logistics – Material management –Purchasing –Purchase order-Create-
Vendor/supplying plant known (The transaction code is ME 21N)

Give the purchasing organization :BILR
Company code :BIL
Enter
Give the purchasing group :BIL
Item :10
Material :BILRM1
PO quantity :100 Kg
net price :75
Plant :BILP
Give the currency :INR
Vendor no. :2001
Save
Note the purchase order no.4500017092

Goods receipt:

Path :Logistics –Material management –Inventory management –Goods
movement –Goods receipt- for purchase order –PO number known (The
transaction code is MIGO)

Select goods receipt
Give purchase order no.4500017092
Enter

104

Storage location select :HYD
Select quantity tab
Quantity in delivery note :100
Select item ok check box
Select display button
Enter
Select document information tab
Select FI documents button
BSX
200121 Inventory RM local 7500 BILRM1 BIL1

WRX
100520 GR/IR CLRG RM local -7500 BILRM1 BIL1
Qty .Received(GR) *Rate as per PO
100*75

Note: change USTAX to GTAX

Invoice verification:

Path :Logistics –Materials management –Logistics-Invoice verification –
Document entry-Enter invoice (Transaction code is MIRO)

Give the invoice date :Today’s date
Reference :Party bill no.1234
Text :Invoice verification
Purchase order :4500017092
Select payment tab
Payment terms :0001
Baseline date :today’s date
Select base data tab
Tax code :select V0
Enter
Business area :BILH
Select beside data tab

105

Amount :7500
Enter
From the menu select invoice document –Display
Select follow on document button

2001 Nagarjuna Steels Limited 7500 –From party no is taken
100520 GR/IR CLRG RM local 7500 BILRM1 BIL1


Path :Logistics –Materials management –Inventory management –goods
movement –goods issue (Transaction code is MB1A)

Movement type :201
Plant :BILP
Enter
Material :BILRM1
Quantity :30
From the menu select goods –Issue display
Enter
Select accounting documents button
Select accounting document number
BSX
200121 Inventory RM local 2250-BILRM1 BIL1
GBB VBR
400000 RM consumption LCL 2250-BILRM1 BIL1
Qty consumed * moving average price
30*75

106

To view stock ledger

Path :Logistics –Materials management –Inventory management –
Environment –Stock for posting date (Transaction code is MB5B)

Material no. :BILRM1
Company code :BIL
Plant :BILP
Selection date :01.04.2008 to 31.03.2009
Select valuated stock radio button
Execute

SD CUSTOMIZATION
SD consultant’s job

1. Define region:(State)
Path :SPRO-SAP netweaver-General settings-Set countries –Insert regions

Country :IN
Region :AP
Description :Andhra Pradesh
Save
Select create request button(F8)
Short description SD customization for BIL
Save in your request

Define sales organization

Path :SPRO-Enterprise structure –Definition –Sales and contribution –
Define,copy,delete,check,-Sales organization

Double click on define sales organization
sales organization :BILS
Description :BIL HYD Sales organization
statistics currency :INR

107

save, Ignore the warning message press enter
Give the name :BIL HYD sales organization
country :IN
region :AP
press enter
To save in your request
Define distribution channel

Same path -Sales & distribution –Define,copy, delete,check distribution
channel

Double click on define distribution channel
Distribution channel :BD
Name :Direct sales
Save

Define shipping point

Path :SPRO-Enterprise structure –Definition-Logistic execution –Define,
copy, delete, check shipping point

Double click define shipping point
Shipping point :BISH
Description :BIL HYD shipping point
Save
Name :BIL HYD shipping point
Country :IN
Enter
Press enter once again to save in the request

Assign sales organization to company code:

108

SPRO-Enterprise structure –Assignment-Sales & Distribution –Assign sales
organization to company code

Sales organization :BILS
Enter
For sales organization :BILS
Assign company code :BIL
Save

Assign distribution channel to sales organization

Same path
Save

Assign division to sales organization

Same path
Division :BS
Save

Setup sales area:

Same path

109

Division :BS
Save

Assign sales organization –distribution channel- plant:

distribution channel :BD
Plant :BILP
Save

Define rules by sales area:

Path :Up to sales and distribution the path is same –Business area account
assignment –Define rules by sales area

enter
For sales organization :BILS
Rule select :001 (Business area determination from plant /
division )
Save, press enter to save in your request

Assign shipping point to plant:

Path :SPRO-Enterprise structure –Assignment-logistic execution –Assign
shipping point to plant

Select find button
Enter :BILP
Press enter
Select :BILP
Select assign button

110

Select BISH check box
enter
Save

Define common distribution channels:

Path :SPRO-Sales & Distribution –Master data –Define common
distribution channels

Give the sales organization :BILS
Enter
Distribution channels for condition :BD
Distribution channels for customer master :select BD
Save

Define common divisions:

Same path

Enter
Division for conditions :select BS
Division for customer master :select BS
Save

Maintain pricing procedures

Path :SPRO-Sales and distribution –Basic functions –pricing –Pricing
control –Define and assign pricing procedures

Double click on maintain pricing procedures
Select pricing RVAA01 standard
Double click on control data folder

111

Condition type SKTV cash discount
Condition type MWST output tax
Deselect required check box
Save
Ignore the warning message press enter to save

Define pricing procedure determination:

Upto define and assign pricing procedures the path is same

Double click on define pricing procedure determination
Division :BS
Document pricing procedure :select A standard
Customer pricing procedure :select 1 standard
Pricing procedure :select RVAA01 standard
Condition type :select PR00 price
Save

Define tax determination rules:

Path :SPRO-Sales and distribution –Basic functions- Taxes –Define tax
determination rules

Tax country :IN for India
Sequence :1
Tax category :UTXJ Tax Jursdict code
Save

Setup partner determination:

Partner functions
Customer No.
SP Sold to Party 1 1 Not modifiable

112

SH Ship to party 1 2 Modifiable
BP Bill to party 1 2. Modifiable
PY Payer 1 2 Modifiable

If we don’t specify separately (SP,SH,BP and PY)all we be only customer

Path :Up to basic functions the path is same-Partner determination –Set up
partner determination

Double click setup partner determination for customer master
Double click on partner functions folder
Partner function :SP
Enter
Select partner function SP
Double click on account group function assignment folder
Account group :BIL2
Partner function :SH
Account group :B1L2
Partner function :BP
Account group :BIL2
Partner function :PY
Account group :BIL2
Ignore the warning message press enter to save in your request
Double click on partner determination procedures folder
Partner determination :BIL
Name :BIL partner determination procedure
Save

Select partner determination :BIL

113

Double click partner functions in processor folder
Select not modifiable check box
Select mandatory check box
Select partner function :SH select mandatory function check box
Select partner function :BP select mandatory function check box
Select partner function :PY select mandatory function check box
Save
Double click on partner determination procedure assignment folder
Account group :BIL2
Enter
For BIL2 Assign partner procedure BIL
Save

Assign shipping points

SPRO-Logistics execution-Shipping –Basic shipping functions –Shipping
point and goods receiving point determination –Assign shipping point

Shipping conditions :select 01 as soon as possible
Loading group :0003 manual
Plant :BILP
Propose shipping point :BISH
Save

FI consultant job:

Creation of GL master sales local own goods under sales group –FS00

114

Give the GL a/c no. :300005
Company code :BIL
Give the GL a/c no. :300000 sales account
Company code :BIL
Enter
Change short text and GL a/c long text local own goods
Tax category :*
Select posting without tax allowed check box
Select create /Bank /Interest tab
Field status group G029 revenue accounts
Save
Enter
Cost element category :11 Revenues
Save

* Assignment of account for automatic postings:

Path :SPRO-Sales and Distribution –Basic function-Account
assignment/costing Revenue account determination –Assign GL accounts
(Transaction code is VKOA)

Note : This is Important Tr code

Double click on table one
Application area :Select V Sales & Distribution
Condition type :KOFI account data
Chart of accounts :BIL
Account assignment group of customer :Select 01 domestic revenues

115

Account assignment group of material :03 Finished goods
Account key :Select ERL sales revenues
GL account :300005 sales local own group
Save

SD end user area
Creation of customer master :XD01
Company code :BIL
Division :BS
Account group :SD customer for BIL
Enter
Name :DLF Industries Ltd
Country :IN
Region :AP
Select company code data button
Reconciliation account :200110 sundry debtors
Sort key :031 customer no.
Select payment transaction tab
Terms of payment :0001
Select sales area data button
Customer pricing procedure :select 1 standard
Select shipping tab
Delivery priority :select 02 normal
Shipping conditions :select 01 as soon as possible
Delivery plant :BILP
Select billing documents tab
Select price determination check box
In CO terms under delivery and payment terms :select EXW form plant
Terms of payment :0001

116

Account assignment group :select 01 domestic revenues
For Tax category UTXJ Tax classification :select 1 liable for tax
Save

Creation of finished goods material master (MM01)

Give the material :BILFG
Industry sector :Mechanical engineer
Material type :Finished product
Select basic data 1
Select Sales :Sales organization data 1
Select Sales :sales org.data 2
Select Sales :General /plant data
Select MRP1
Select general plant data /storage 1
Select accounting 1
Select organization levels button
Plant :BILP
Enter
Description :Finished product
Base unit of measurement :KG
Division :BS
Gross weight :1 kg
Select sales :select 1
sales :Sales org.1 tab
Division :BS
Tax classification :select 1 (Taxable)
Select sales :sales, sales organization 2 tab

117

Account assignment group :select 03 finished goods
Select sales :General /plant tab
Available check :select KP no check
Transportation group :select 0003 container
Loading group :select 0003 manual
Select MRP1 tab
MRP type :select ND no planning
Select accounting 1 tab
Valuation class :select BILL2 finished product
Price control :select S standard price
Standard price :400
Save
Creation condition types:

Path : Logistics –Sales & Distribution –Master data-Conditions –Select
using conditions type-create (Transaction code is VK11)

Condition type :PR00 price
Select key combination button: Select material with release status radio button
Enter
Sales organization BILS
Material :BILFG
Amount :600
Valid to :31.03.2009
Save
Select back arrow
Condition type :select UTXJ tax Jursdict code
Select key combination button
Select domestic taxes radio button
Enter
Country :IN for India

118

Tax classification for customer :1
Tax classification for material :1
Valid to :31.03.2009
Tax code :A0 (0% output tax)
Save

CO –PROFITABILITY ANALYSIS (CO-PA)

Co for Controlling
PA for Profitability Analysis

This is used to view profitability for number of parameters at a time:

Eg: Customerwise /Productiwise /Sales order wise plant wise, Sales organization
profitability.

Account based profitability /costing based profitability analysis / both (in India we use
both)

PP Module
MM Module
FI Module product costing SD module CO-PA
CO Module
Define an operating concert
Operating concern can be equal to controlling area or above controlling area
Controlling area can be equal to our company code or above company code
Company code =controlling area =operating concern

Data structure

Characteristics Value fields

Customer ------
Product |
Sales order |
Plant |- Sales cost of goods sold net profit
Sales organization |
Sales employee |
Country |

119

----

Profitability segment It consists of
A) System defaulted characteristics
Eg: customer / Product / Sales order /Plant /Sales organization
B) Client required characteristics
Eg: Sales employee / Industry

Data flow in SD module:

1. Inquiry and quotation
2. Sales order –customer /product /plant sales organization /quantity /rate delivery
terms payment terms.
3. Delivery with reference to sales order.
A) without posting goods issue (without PGI)
B) with post goods issue (with PG1)
4. Sales billing with reference to delivery

Data flow in Co-PA

SD condition types CO-PA value fields

PR00 Price VV 010 – Revenues
VPRS Costs VV 140 – Cost of goods sold
(Product costs)
(up to COGM level) CO - +FI
COGM Admin & SD Exp.
(Both –costing based and account
based)
We are going to MAP:
PR00 =VV010
VPRS=W140
Product cost : BILFG1
Cost sheet: BILFG
Raw materials xxx
Raw material overheads xxx
Production costs xxx
----- Production valuation will be at COGM level or
COGM+ admin exp. Level
Cost of goods manufactured xxx
(COGM)
Administration xxx
Sales & Distribution xxx
-----
Cost of goods sold (COGS) xxx

120

In client 800 –for company code 10001 controlling area -1000 operating concern IDEA
In IDEA –All SD condition types and equivalent CO-PA value fields

We check IDEA and do customization the same way for our operating concern also
IDEA is a references to all the CO consultants

CUSTOMIZATION :

Maintain operating concern

Path :SPRO-Controlling –Profitability analysis –Structures –Define operating concern
–Maintain operating concern (Tr code is KEA0)

Give the operating concern :BIL1 (It is a text field)
Description :Operating concern for BIL
Select costing based check box
Select account based check box
select attributes tab
operating concern currency INR
select company code currency check box
fiscal year variant :V3
save
select data structure tab
select create button under data structure
select KMVTNR sales employee
select left arrow
select value fields tab
select VV010 revenue
select VV140 cost of goods sold

121

select left arrow
select save button
from the menu select data structure save
from the menu select data structure activate
Select back arrow
Select yes button for the message to generate the operating concern environment.
Save
Define profitability segment characteristics (Segment –level characteristics)

Path: Up to structures the path is same -Define profitability segment Characteristics
(Tr code is KEQ3)

Give the operating concern :BIL1
Enter
For product and customer
Select costing base and account base radio button
Save

Assign controlling area to operating concern:

Path :SPRO-Enterprise structure –Assignment –Controlling –Assign controlling area
to operating concern.

Enter
For controlling area :BIL
Assign operating concern :BIL1
Save

Define no.range for actual postings

122

Path :SPRO-Controlling –Profitability analysis –Flows of actual values –Initial steps –
Define no.range for actual postings (Tr code is KEN1)

Operating concern :BIL1
Select generated groups check box
From the menu select interval maintain
From no. 1
To no. :9999999999 (10 times)
Save

Maintain assignment of SD conditions to CO-PA value fields:

Path :Up to flows of actual values the path is same –Transfer of billing documents –
Assign value fields .(TR code is KE4I)

Double click on maintain assignment of SD conditions to CO-PA value fields

Open one more session with SPRO-Controlling-Profitability analysis –Structures –Set
operating concern

Give the operating concern
Select operating concern :IDEA
Enter
User the Tr code is KE4I

Come to the first session
Condition type :PR00
Value field :VV010 (Revenues)
Condition type :VPRS (cost)
Value field :VV140 (Cost of goods/ Sold)
Save

Notes :Direct posting from FI/MM

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PR00 price :VV010 Revenues
Scrap sales/waste sales –Posting only in FI, only FI-No Co account base , if we post
manually in FI
If we post directly in FI-for account no.300000-399999 up date VV010 revenues

VPRS costs :VV140 cost of goods sold

If we post directly in FI for account no.400000-499999 up date VV140 cost of goods sold

Up to flows of actual value the path is same
(Through path )

Direct posting from FI/MM:Maintain PA transfer structure for direct postings
Tr code is KEI2

Select structure FI (Financial accounting COPA)
Double click assignment lines folder
Enter
Enter once again
Select assignment :20 (Direct revenues from FI)
From :300000
To :399999
Double click on value fields folder
Quality /value :Select value filed
Fixed /variable :Select 1 fixed amounts
Value field :select VV010
Save

Double click on assignment lines folder
Assignment select :10 Direct cost from FI
From :400000

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To :499999
Double click on value fields folder
Quantity /value :select value field
Fixed /variable :select 1 fixed amount
Value field :VV140
Save

Activate profitability analysis

Path :Up to flows of actual values the path is same Activate profitability analysis
(KEKE)

Enter
For controlling area :BIL
Activate status :select 4 (component activate for both types of
profitability analysis)
Save, press enter to save in your request

SD END USER AREA
1. Creation of sales order

Path: Logistics –Sales and Distribution – Sales –Order –Create (Tr code is VA01)

Order type :select OR (Standard Order)
Distribution Channel :BD
Division :BS
Enter
Sold to party :200101
P.O.No. :1
P.O.Date :To days date
Required delivery date :Today’s date

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Payment terms :0001
Item :10
Material :BILFG
Order quantity :10 kg
Enter
Select item :10
From the menu select Goto Item Conditions
Select shipping tab
From the menu select Edit in complication log
We get a message document is complete ,no errors

Note the order no.11764

Production receipt :

There are two types of production receipt.

1. Production receipt without production order 2. Production receipt with production
order
MVT Type:521 MVT Type:101

Path :Logistics –Materials Management –Inventory management –Goods movement –
Goods -receipt –Other (Tr code is MB1C)

Moment type :521 (Receipt w/o production order into unrest –use stock)
Plant :BILP
Enter
Give the material :BILFG
Quantity :50
Save
Note : Check it GL A/c 200122 Inventory, select automatic posting check box

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From the menu select other goods receipts Display-Enter
Select accounting document no.
BSX
200122 Inventory FG 20000 BILFG BIL2
GBB
300200 INC/DEC in stocks FG 20000-BILFG BIL2 ZOF
Qty *Standard Price
50*400

Delivery:
Path : Logistics –Sales & Distribution –Sales –Order –Sub request functions –
Outbound delivery (Tr code is VL01N)
Shipping post :BILH
Give the order no. :11764
Enter
Actual goods issue date :Today’s date
Select item :10
Select picking tab
Picked quantity :10
Select post goods issue button
From the menu select outbound delivery display
Enter
From the menu select Environment Document flow keep the cursor on goods issue
delivery document no. (down side in document column)
Select display document button
Double click on accounting document no.
200122 Inventory FG 4000-BILFG BSX is assign this A/c BIL2
300200 INC/DEC in stocks FG 4000 BILFG GBB VAY assigned to BIL2
Qty delivered *Standard price
10*400

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Sales billing

Path :Up to sub sequent functions the path is same –Billing document(Tr code is
VF01)
(Through path)

Select Delivery document no.
Execute
Save
From the menu select Billing document-Display-Select accounting button
Double click on accounting document no.
200100 DLF Industries Limited 6000 customer no.is taken from sales order

300005 Sales local own goods 6000-ERL
Qty sold *Sale price
10*600

REPORT PAINTER

Report to view customer wise/product wise /Sales organization wise /plant wise
profitability

Define forms for profitability reports :

Path :SPRO-Controlling –Profitability analysis –Information system –report
components –Define forms –Define forms for profitability reports-(The Tr code is
KE34)

Double click on creation Form
Give the operation concern form :AML
Form description : From AML profitability
Select two axes (matrix) radio button
Select operating concern currency radio button
Enter
Double click on row 1
Select value field with characteristics radio button
Enter
Value field select VV010 – Revenue

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Select value field with characteristics radio button
Enter
Value field select VV140 –cost of goods sold
Select formula radio button
Enter
Select Y001
Select minus button
Select Y002 cost of goods sold
Enter
Short text Net profit
Select copy short text button
Enter
Double click on column 1
Select characteristics radio button
Enter
Select plant /Actual indicator for available characteristics
Select left arrow
For plant /actual indicator
From :Select 0 actual data
Save
From the menu select Edit-General data selection
Once again general data selection
From the available characteristics column
Select record type, period /year
Select left arrow
For record type
For form column :Select B direct posting from FI

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For To column :Select F billing data
For period /year : For from column :Select variable on /off check box
Local variable :Enter 1
Press enter
For to column select variable on/off check box
Local variable :2
Enter
From the select Extras –variables –variable definition
For name 1 : Give the description from period /year
For name 2 Description :To period /year
Enter & save

Create profitability report:

Same path
Double click on crate profitability report
Tr code is KE31

Give the report :BILREPORT ( This is a text field)
Description :BIL Profitability Report
Select report with from radio button
Give the form name :BIL1
Select operating concert currency radio button
From the characteristics list :Select customer /plant /product ,Sales organization
Select left arrow
Select output type tab
Select classic drill down radio button
Select available on selection screen check box
Save

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Form period/year :01.2008
To period /Year :12.2008
Execute
Ignore the message select press enter
To view product wise profitability from the menu select navigate-with drill down
Double click on product
This called date cube
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

Variable will be settled to accounts

How standard cost will be arrived at :

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

131

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
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


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

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Raw material Issue Issue Finished product

Wages 300000
Salaries 100000
Power 320000
-------
Planned cost 720000
=====
Planned hours available
Machines 100 working for 3 shifts (24 Hours )
No.of days 30 Days
100*30*24=72000
Machine hour rate 720000/72000=10 Rs
(Activity type)
To Produce BILFG1
Hours required 5Hrs
Production cost 10*5=50

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 999
------ -----
1000 1000 720000

If we allocate cost based on production

BILFG1 720000*999/1000=719280
BILFG2 720000*1/1000= 720
--------
720000
======
If we allocate cost based on hours required

BILFG1 720000*1/1000 =720
BILFG2 720000*999/1000 =719280
-----------
720000
========
ACTIVITY BASED COSTING

133

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 1200000
Valid from 01.04.2008 to 31.12.9999
Enter
Give the name and description :RM Overhead rate
Cost element category : Select 41 overhead rates
Save
Enter
Name and description :Activity allocation
Cost element category :select 43 Interval activity allocation
Save

Creation of activity type –Machine hour:

Path :Accounting –Controlling –cost Center accounting –Master data –Activity type-
Individual processing –create (Transaction code KL01)

Activity type :BIL
Valid from :01.04.2008 to 31.12.9999
Enter
Give the Name & Description :Machine hour
Activity unit :select H
Cost center categories :Select * (All cost center categories)
Active type category :select 1 (Manual entry , Manual allocation)
Allocation cost element :1200001
Save

Creation of cost centers: (Tr.code is KS01)

134

Give the cost center :Dept G
Valid from : 01.04.2008 to 31.12.9999
Enter
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
Enter
Change the name to Dept H
Change the description to cost center:Dept H
Change person responsible to Mr.H
Cost center category :select 9( Allocation cost center)
Save

Create of cost center group (Tr code is KSH1)

Give the cost center group :BILPROD
Enter
Description :BIL Production cost center group
Select insert cost center button
Select cost center Dept G
Save

Define overhead keys:

135

Path :SPRO-Controlling –Product cost controlling –Product cost planning basic
settings for material costing - overheads-Define overhead keys

Select new entries
Overhead key :BIL1
Description :BIL Overhead key
Save

Define overhead groups
Same path

Overhead group :BIL1
Overhead key :BIL1
Name of overhead group :BIL over head group
Save
Note:
Overhead rate will be given to overhead key
Overhead key will be assigned to overhead group
Overhead group will be specified in material master

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

136

Save

Select D1 double click on details folder
Enter
From cost element :400000
To cost element :400099 RM consumption
Save
Select back arrow two times
Select base D2 Production cost
Double click on details folder
Enter
To cost element :400299 Personnel & Manufacturing group

To cost element :400599 Depreciation a/c

From cost element :1200001 Activity allocation
To cost element :1200001
Save

Define percentage overhead rates:
Same path

Overhead rate :D3
Name :RM overhead rate

137

Dependency :Select D010 Overhead type/Overhead key
Save

Select D3

Valid from To Controlling area Overhead type Overhead key Percentage

01.04.2008 31.03.2009 BIL Select 2 BIL1 5
(Planned overhead rate) RM key

01.04.2008 31.03.2009 BIL 1 (Actual overhead rate) BIL1 10


Define Credits
Same path

Credit :D4
Name :BIL RM credit key
Save
Select :D4
Enter
Valid to :31.03.2009
Cost element :1200000 RM overhead rate
Fixed percentage :100%

138

Cost center :Dept H (Allocation cost center)
Save
Actual over head rate 10%
Credit key D4 -1100000 Cost Dept.

1. RM1 Purchase/Receipt (Freight including)


2. Loading & Unloading charges

Loading & Unloading charges Dr 7000 Dept H
To Bank 7000

3. RM 2 Purchase


4. Loading & Unloading charges for RM 2

Lodging & unloading charges DR 3000
To Bank 3000

5. RM Consumption for production Order 1-RM1 and RM2

RM consumption local DR 40000 Order 1
RM Consumption local DR 20000 Order 1
To Inventory RM local 40000
To Inventories RM local 20000

6. RM consumption for production order 2 RM-1 and RM2

RM consumption local DR 10000 Order 2
RM Consumption local DR 30000 Order 2
To inventory RM local 10000
To Inventory RM local 30000

In the month end

RM material consumption 100000
Lodging & Unloading charges 10000

139

% on consumption 10% actual overhead rate

Cost center Dept H
(Allocation cost center)

Loading & Unloading for RM1 7000 DR Order 1 6000 DR
Loading & Unloading for RM2 3000 DR Order 2 4000CR

H Value will be zero

Order 1 Order2
RM Consumption 60000 40000
RM overhead rate 6000 4000
(Actual 10%) ----- -----
66000 44000
===== =====

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 :BIL
Description :BIL Costing Sheet
Save
Select :BIL
Double click on costing sheet rows folder

Row Base Overhead Description

10 D1 Raw materials
20 400000-400099
D3 RM Overhead rate
From :10
To Row :10

140

Credit :D4

Row :30
Base :D2
Description :Product cost

Row :40
Description :Cost goods manufacturer
From :10
To row :30
Save

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)

Cost variant :Select PPC1 standard cost estimate (Materials)
Enter
Select PPC1
Select valuation variant button
Select create beside valuation variant /plant
In plant :BILP
Save

Select back arrow
Select valuation variant :001 with plant BILP
Select overhead tab
Give the costing sheet :BIL costing sheet both in the places
Save

141

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 ?

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 :BIL
Cost component :select 10 RM
Save
Select back arrow
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 :BIL
From cost element :1200000 RM overhead
Cost component :80 Material overhead
Save

142

Select cost component structure :01 with lost component 50 production machine
Double click on assignment cost component –cost element interval folder
Cost component :select 50 production machine

One more
From cost center :400500
To cost center :400599
Cost component :50

One more

Cost component :50
Save
Double click on cost component structure folder
For cost component structure 01 select active check box
Save
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

143

Path :SPRO-Production –material requirements Planning –Master data-Define –MRP
controllers

Plant :BILP
MRP controller :Mr.A
Save

Notes:
Define floats (Scheduling margin key)

Floats –Buffer days or grace days
2 days grace days
Production order creation 08.12.2008 10.12.2008
Production order release 10.12.2008 12.12.2008
Production start date 11.12.2008 13.12.2008
Production end date 15.12.2008 17.12.2008

Path :SPRO-Production –Material requirements planning –Planning –Scheduling and
capacity parameters –Define floats (Scheduling margin key)

Plant :BILP
Margin key :BIL
Opening period :2 days
Float before production :2 days
Float after production :2 days
Release period :2 days
Save

Define production scheduler

Path :SPRO-Production-Shop floor control- Master data-Define production scheduler

Plant :BILP
Production scheduler :B

144

Description :Mr.B
Save

Determine person responsible for work center

Path :SPRO-Production –Basic data –Work center –General data –Determination
person responsible

Plant :BILP
Responsible person : Mr.C
Person responsible for work center :Mr.C
Save

CO END USER AREA:

Planning cost center wise (KP06)

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 :400100 Salaries A/c
Select overview screen button (F5)
For 400100 Plant fixed cost :720000
Save

Planning for machine hours

Path :Accounting –Controlling –Cost center accounting –Planning-Activity output
/Prices-Change (KP26)

Version :0
From period :9

145

To period :9
Fiscal year :2008
Cost center :Dept G
Activity type :BIL
Plant activity :72000
Save

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 :BILPROD
Execute
Select save button

MM END USER AREA

Creation of material master (MM01)

A) Raw material 2
B) Finished product 1

Give the material :BILRM2
Industry sector :Mechanical Engineering
Material type :Raw material
Press select view button
Select basic data1 :Select purchasing Select general plant data /storage /Accounting
Plant :BILP
Storage location :Hyderabad
Enter

146

Give the description :Raw material 2
Base unit of measurement :KG
Material group :BILC
Division :BS
Select purchasing tab
Select accounting 1 tab
Valuation class :BIL1 RM Local
Price control :select V moving
Moving price :150
Save

One more material :BILFG1
Industry section :Mechanical engineering
Material type :Finished product

Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1,
accounting , Costing 1
Select organizational levels button /enter
Enter
Plant :BILP
Storage location :Hyderabad
Enter
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

147

Select MRP 2 tab
In –house production :0 days
Schedule margin key :select BIL
Select MPR 3 tab
Availability check :select KP (no check )
Select work scheduling tab
Production scheduler :B
Select accounting tab
Valuation class :BIL2 Finished products
Price control :S (Standard price)
Standard price :300
Select costing one tab
Overhead group :select BIL1
Save
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)

Give the material :BILFG1
Plant :BILP
BOM usage :select 1 production
Enter
For item :10
Give the component :BILRM1
Quantity :1
Item :20
Give the plant :BILRM2

148

Quantity :1
Save

Creation of work center

Path :Up to mater data the path is same –Work centers –then work centers-create
(CR01)

Plant :BILP
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
Cost center :Dept G
For machine activity :Give activity type BIL
Activity unit :H (Hour)
Formula key :SAP002 (Production machine time)
Save

Creation of routings

Path :Up to master data the path is same –Routings –Routings –Standard routings –
Create (Tr code is CA01)

Plant :BILP
Enter
Usage :select 1 production
Status ;select 4 (released (general))

149

Select operation button
For operation 10 give the work center :Dept G
Control key :select PP01 in hour production
Double click on operation :10
Machine standard value :5
Unit :H (Hour)
Save
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)

Plant :BILP
Costing variant :select PPC1 (standard cost estimate for material )
Enter
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 :31.12.9999
Quantity structure date :08.12.2008
Valuation date :08.12.2008
Enter

Cost sheet
Raw materials

BIL RM1 1 Kg 75
BILRM2 1Kg 150 225

RM overhead cost -5% 11
Production costs 5*10 50
Machine hours 5 Hrs

150

Machine hour rate 10Rs -----
286

From the menu select Costs –>Display cost components
Enter

Marking and releasing

Display material master

Path :Logistics –Materials management –Material master-Material –Display –Display
current (MM03)

Material :BILFG1
Select costing 2 view
Enter
Plant :BILP
Enter

A) Marking and releasing

Display material master
1. Making updates future price in live environment on 21st February create estimate for
March and store in the System.

2. Realizing updates current price on 1st of March release stock valuation will be at the
new rate from 1st 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 :BIL
Plant :BILP
Material :BILFG1
Select test run check box
Select marking allowance button

151

Costing variant :select PPC1
(Standard cost estimate for materials)
Save

Select back arrow
Execute
Select material :BILFG1
Select costing to tab
Select release button
Execute
Select material :BILFG1
Select costing to tab

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 create button beside valuation variant /plant
In plant :BILP
Save

152

Select back arrow
Select valuation variant :006 with plant BILP
Select overhead tab
Give the costing sheet :BIL costing sheet
Save
Select back arrow
Select costing variant PPP2 production Order Actual
Select create beside valuation variant/plant
In plant :BILP
Save
Select back arrow
Select valuation variant 007 with plant :BILP
Select overhead tab
Costing sheet :select BIL costing sheet
Save

Define goods received valuation for order delivery:
Same path

Valuation variant :007 production order -Actual
Save

Work in process customization

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

Give the cost element :1100000

153

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
Reference cost element :1100000
Enter & Save

Enter & Save
Enter & Save
Enter
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 (Tr
code is OKG1)

Result analysis key :FERT WIP calculation for production orders

Define results analysis versions(Tr code OKG9)
Same path

154

Technical result analysis cost element :select 1100000
Save

Define valuation method (Actual cost) ( Tr code is OKGC)
Same path
Select actual cost button
Result analysis version :0
Result analysis key :FERT
Enter & Save

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

Define Assignment (OKGB)
Same path
Select line ID EL that is revenues for controlling area :1000
Change the controlling area to BIL

155

Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999)
Enter & Save
Select line ID :EK Direct cost for controlling area 1000
Change mass cost element to 00004000++
Enter and save
Select line ID FK that is production cost for controlling area 1000

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 ept 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
Change the mass cost element to 00004002++
Enter & Save

156

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
Change mass cost element to 0001000001 :(settlement cost element)
Enter & save

Define update; (Tr.code is OKGA)

Same path
Version :0
Line ID :select EL revenues
Category :select N (costs not to be included)
Version :0
Line ID :Select EK (Direct cost)
Category :select K cost
WIP :1100001
Revenues :1100002
Version :0
Revenues analysis key :FERT
Line ID :FK production cost

157

Category :select K cost
WIP creation :1100003
Reserves creation :1100004
Select page down button
One more controlling area :BIL
Version :0
Line ID :ABR settled cost
Category :select A (Settled cost )
Save

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
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

158

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)

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

Define results analysis version (OKG9)
Same path

select details button
Select transfer to Financial accounting check box
Save

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)

159

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
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

Enter
For plant :BILP
Assign variance key :BIL1
Save

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
Change the description to target cost version for BIL
Enter & Save

160


Assign variance key in Material master

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

Give the material no.BILFG1
Select costing 1 view
Enter
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

161

Select :B2
Double click on assignments folder
Assignment Text
01 Direct costs(Raw materials)
02 Material overheads
03 Production costs
Save

Select assignment 01
Double click settlement cost elements folder
Receiver category :select G/L, GL account
Select by cost element check box
Save

Double click on assignments folder
Select assignment 02 Material overheads
From cost element :1200000 RM overhead rate
Double click on settlement cost elements folder
Receiver category :select G/L , GL Account
Save
Double click on assignment folder
Select assignment 03 production cost

162

Give the cost element group :BILPRODN
save
Double click on settlements cost elements folder
Receiver category :select G/L
Save

Create settlement profile:
Same path

Settlement profile :BIL
Description :BIL production order differences settlement profile
Default object type :select G/L
Select equivalence number check box
Under valid receivers for GL account :Select settlement required
Document type :SA
Maximum no.of distribution rules :999
Save

Define CO.No.range interval for the business transactions

RKL -Actual Activity Allocation
KZPI- Actual overhead (Periodic)

User transactions code :KANK

163

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

Define exchange rate for type P (Standard truncation for cost planning for INR to
EURO

(Transactions code OB08)

Exchange rate type :P
From currency :INR
To currency :EUR
Direct quotation :0.02
Save

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)

164

Give the GL A/c No.400201
Company code :BIL
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
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
Change the field status group G049 (manufacturing cost accounts)
Save
Give the GL account no.300200 INC/DEC stock in FG
Company code :BIL
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

165

Give the Chart of Accounts :BIL
Enter
Save
Give A/c No.400201 production order differences
Save
Select back arrow
Double click on GBB offsetting entry for inventory posting
General modification :BSA opening stock taking
Valuation class :BIL1
Account no. :100599 stock taking account
General modification :AUA production
Valuation class :BILL
Account :300200
Save

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
Change the pant to BILP
Enter and Save

Define scheduling parameters for production orders

166

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
Enter 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
Enter and Save

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
Enter
Enter and save

END USER AREA

Creation of production order:

167

Path :Logistics –Production-Shop floor control-Order –Create –with material (Tr code
is CO01)
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
From the menu select other goods receipts display
Enter

168

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

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 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)

Period :9
Fiscal year :2008
Select text check box
Select dialog display check box

169

Execute
Select back arrow
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
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)

Settlement period :9
Fiscal year :2008
Execute
Select detail lists button

170

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)

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)

171

Order :60003225
Plant :BILP
Enter
From the menu select goods receipt display
Document no.5000011861
Enter

200122 Inventory FG 2860 BILFG1 BSX 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)

Select back arrow
Execute

172

Double click on variance amount

Open one more session for order display (CO03)
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
WIP to Period :9
Fiscal year :2008
Result analysis version:0
Execute
Settlement of work in process to accounts :KO88
Settlement period :9
Fiscal year :2008
Execute
Select details list button
GBB AUA

173

300200 INC/DEC in stocks FG 853 BILFG1 BIL2
400201 Production order diff 853 period
300201 INC/DEC in stock WIP 3713 P & L debit
200123 work in process 3713 –Balance sheet credit

ASSET ACCOUNTING AREA

Capital work in progress line item settlement
Machine purchase Debit to CWIPMachine no.15
01.12.2008 Commission 13/12/2008

Freight charges 05.12.2008 settle from CWIP to respective asset
Commissioning charges 12/12/2008

Define settlement profile:

Path :SPRO-Financial accounting –Asset accounting- Transactions-Capitalization of
assets under construction –Define /Assign settlement profiles (TR code is OKO7)

Double click on define settlement profile
Select settlement profile AI Settlement assets under construction
Allocation structure :select A1( CO allocation structure)
Default object type :select FXA asset
Select equivalence numbers check box
Under valid reserves for fixed assets :Select settlement required
Document type :AA (Asset Posting)
Max no. distribution rules :999
Save
Double click on assign settlement :Profile to company code

174

Enter
For company code BIL assign settlement profile AI
Save

Creation of capital work in progress asset master (AS01)

Give the asset class :BIL4000 capital work in progress
Company code :BIL
Enter
Description :CWIP –General
Capitalized on :01.12.2008
Select time dependent tab
Business area :BILH
Select depreciation areas tab
Depreciation key :0000 (no depreciation)
Save
Note down the asset no.500001-0

Asset purchase posting (F-90)

Give the doc .Date & Posting date :01.12.2008
Type :KR
Company code :BIL
Posting key :31
Vendor account :2001
Business area :BILH
Text :Machinery purchase posting
Posting key :70
Account no. :500001-0

175

Transaction type :100 External acquisition
Remove the TDS codes
Enter
Amount :*
Text :+
Document –Simulate & Save

Freight payment (F-02)

Give the Doc date & Posting date :15.12.2008
Type :SA
Company code :BIL
Posting key :70
Account :500001-0
Transaction type :100
Enter
Text :Freight payment
Posting key :50
Account no. :200105 SBI current a/c
Enter
Amount :*
Business area :BILH
Text :+
Document –simulate & save

Creation of machinery master (AS01)

Give the asset class :BIL 2000 Dept A
Company code :BIL
Enter
Description :Machine no.15
Capitalized on to days date

176

Select time dependent tab
Business area :BILH
Select depreciation area tab
Depreciation key :BIL1
Useful life :15 years
Period :6 months
Ordinary depreciation start date :Today’s date
Save
Note: the asset no.200004-0

Settlement of CWIP to machine no.15

Path :Accounting –Financial accounting –Fixed assets –Posting-Capitalized asset
under construction –distribute (Tr code is A1AB)

Company code :BIL
Asset :500001
Sub number :0
Execute
From the menu select Edit –select –select all (F5)
Select enter button
Category :select FXA asset
Settlement receiver :200004-0
Give the percentage :100
Select back arrow
Save
Select settlement button (Shift +F8)
Give the asset value date :13.12.2008 (Today’s date)
Text :CWIP settlement
Execute

Go and see the document (FB03)
Enter

177

Note :In live environment you take a purchase of machinery don’t enter directly Asset
account, first enter in Capital Work in Progress after commissioning added all charged
convert to asset accounting.

NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES)

New general ledger (Multiple ledgers)

Accounting group V3 India group April –March B1 Leading ledger –0L
Accounting group K4 US Group Jan –Dec K4 Non leading ledger –M1
Accounting group V6 UK Group July-June V6 Non leading ledger 2 –M2

When we create ledgers automatically ledger group will be created

We can assign in ledger group number of legers for 0L we can assign all and M2

At the time of posting –If we don’t specify ledger group –It updates all legers.

FC (Foreign currency)Revaluation –Gain /Loss to charge to P & L account -For leading
ledger 01 and non leading ledger M1-For UK group purpose it is to be added to asset and
calculate depreciation for ledger group 0L-Assign M1 ( 0L is already assigned) –At the
time posting it updates ledgers 0L and M1

Representative ledger and non-representative ledger

When we create legers ledger group will be created that ledger will be called
representative ledger – we are assigning for 0L ledger group M1 –This is called non
representative ledger.

At the of posting system checks representative ledger periods are open or not –we need
not open non-representative ledgers periods.

Eg: Ledger GRP (Group)-0L

Ledger 01 Representative ledger
(April 2008- March 2009)
January 2009 period should be open
Ledger M1 Non-representative ledger
January 2009 –December 2009
January 2009 period can be closed.

We are creating M1 ledger –Automatically M1 ledger GRP is created –we are assigning
ledger 0L (0L=Leading ledger) –Always leading ledger only should be the representative
ledger.

178

Document types and no.ranges are required non-leading ledgers –All non-leading ledgers
we specify all document types and given only one number range –we give number range
interval only for one number range.

CUSTOMIZATION

Activate new general ledger accounting:

Path :SPRO-Financial accounting –Financial accounting global settings –Activate
new general ledger accounting

Select new general ledger active check box
Save
(This is one time job work at client place)

Define ledgers for general ledger accounting

Path :SPRO-Financial accounting (new) -Financial accounting global settings (new) –
Legers –Ledger-Define ledgers for general ledger accounting

Ledger :M1 ( Text filed)
Ledger name :Non leading ledger for BIL
Totals table :FAGLFLEXT
Ledger :M2
Ledger name :Non leading ledger for BIL
Totals table :FAGLFLEXT
Save

Define and activate non-leading ledgers:
Same path

Give the ledger :M1
Enter
Company code :BIL

179

Fiscal year variant :K4
Posting period variant :BIL
Save
Select back arrow

Give the ledger :M2
Enter
Company code :BIL
Fiscal year variant :V6 (July to June)
Posting period variant :BIL
Save

Define ledger group:
Same path

Select ledger group :0L
Double click on ledger assignment folder
Ledger :M1
Deselect representative ledger check box
Save

Define document types for entry view in a ledger

Path :SPRO-Financial accounting (new)-Financial accounting global settings (new) –
Document –Document types –Define document types for entry view in a ledger.

Give the ledger :M1
Enter
Type Number range
SA 40 (give it any number range)
KR 40
DR 40
WE 40

180

WA 40
RE 40
RV 40
WI 40
AA 40
Save
Select back arrow

Give the ledger :M2
Enter

Type Number range
SA 41
KR 41
DR 41
WI 41
WA 41
WE 41
WL 41
RE 41
RV 41
AA 41

Save

Define document types for general ledger view
Same path
Give the ledger :M1
Enter
Type Number range
SA 45
KR 45
DR 45
WA 45
WI 45
WL 45
WE 45
RE 45
RV 45
AA 45
Save


181

Select back arrow

Ledger M2

Enter

Type Number range
SA 46
KR 46
DR 46
WA 46
WE 46
WI 46
WL 46
RE 46
RV 46
AA 46
Save

Define document number ranges for entry view:

Path :Up to document the path is same – Document number rages –Documents in
entry view –Define document number ranges for entry view

No.range :40
Year :2009
From no. :1100001
To no. :1200000
Enter
No.range :41
Year :2008
From no. :1200001
To no. :1300000
Enter and save

182


Define document no.range for general ledger view:

Path :Up to document the path is same –Document no.rages –Documents in general
ledger view –Define document no.range for general ledger view

No.range :45
Year :2009
Form number :500001
To number :600000
Enter
No.range :46
Year ;2008
From number :600001
To number :700000
Enter & save

END USER AREA

Posting of transaction :

Path :Accounting –Financial accounting-General ledger –Posting –Enter general
posting for ledger group (Tr code is FB01L)

Type :SA
Ledger group :blank
Company code :BIL
Posting key :40

183

Account number :200100 Cash A/c
Enter
Business area :BILH
Text :Equity share capital receipt
Posting key :50
Account no. :100000 Equity share capital
Enter
Amount :*
Business area :BILH
Text :+
Document date :Todays date
Type :SA
Ledger group :0L
Company code :BIL
Posting key :40
Account no. :200100 Cash A/c
Enter
Amount :50000
Business area :BILH
Text :Equity share capital receipt
Posting key :50
Account no. :100000 Equity share capital
Enter
Amount :*
Business area :BILH
Text :+

0L Leading ledger April 2008- March 2009 10th Period 105000 2008

184

M1 Non-leading ledger Jan 2009-Dec 2009 1st Period 105000 2009

M2 Nonleading ledger July 2008 –June 2009 7th Period 100000 2008

To view the ledger

Path :Accounting –Financial accounting –General ledger –Account –Display balances
(new) (Tr cod is FAGLB03)

Account number :100000
Company code :BIL
Fiscal year :2008
Ledger :0L
Execute
Double click on balance 105000
To view the document
Select document no.check box
Select call up document overview button
Select back arrow 3 times
Select choose ledger button
Change the ledger to M1
Enter
Change the Fiscal year to 2009
Execute
Select back arrow
Select choose ledger button
Change the ledger to M2
Enter
Change the fiscal year 2008
Execute
Segments Creation

185

Scenario Future scenario
Company code :BIL Company code BIL
| |
Business area :HYD Segment HYD
| |
Profit centers :Cement, Steel Profit center Cement , Steel

In future there will not be any developments Segments will be assigned in the for
Business areas profit center

In case of automatic line items generation business
Area will not be picked up
Profit center –through derivation
rules
Profit center is updated automatically
segment also will be updated.

Segment creation

Path :SPRO-Enterprise structure –Definition –Financial accounting -Define segment


Segment Description
BGL Bangalore segment
HYD Hyderabad segment

Assign segment in profit centers:

Path :Accounting –Controlling profit center accounting –Master data profit center –
Individual processing change (Tr code is KE52)

Profit center :select Steel
Enter
Segment :select HYD
Enter
Select activate button (Shift +F1)

One more profit center

186

Enter
Segment :select HYD
Select activate button
DOCUMENT SPLITTING

In document splitting, line items are split according to selected dimensions –so that we
can draw financial statements for the selected dimensions at any time.

Eg: Profit Center wise, Segment wise

Sales
Party X Account Dr 100000
To Sales Steel 80000 Steel profit center
To Sales cement 20000 Cement profit center

Due to document splitting
Party X Account Dr 80000 Steel
Party X account Dr 20000 Cement
To Sales Steel 80000 Steel
To Sales Cement 20000 Cement

Creation of 3GL masters :FS00

A) Sales –Steel Sales
B) Sales –Cement Sales
C)Zero balance clearing a/c current liabilities & provisions

FS00

GL Account no. :300010
Company code :BIL
Give the Gl A/c No. :300005 Sales local own goods
Company code :BIL
Enter
Change short text and GL account long text to sales Steel
Save
Select edit cot element button

187

Valid from 01.04.2008 to 31.03.9999
Enter
Save

Second a/c
Give the GL A/c No. :300011
Company code :BIL
Give the GL A/c :300010
Company code :BIL
Enter
Change short text and GL a/c long text to sales Cement
Save

Save

GL A/c No. :100530
Company code :BIL
Give the GL A/c No.100505 VAT payable
Company code :BIL
Enter
Change short text and GL account long text to Zero balance clearing
Select create /Bank /Interest tab
Change field status group to G067 (Reconciliation account)
Save

Classify G/L Accounts for document splitting:

188

Path :SPRO-Financial accounting (new)-General ledger accounts(new) –Business
transactions –Document splitting-Classify G/L accounts for document splitting

Give your chart of accounts :BIL
Enter

Account from Account to Category Description
100000 299999 01000 Balance sheet account
300000 399999 30000 Revenue
400000 499999 20000 Expense
Save

Define Zero balance clearing account
Same path

Select account key :000
Double click on accounts folder
Enter
Give the G/L account :100530 Zero balance clearing A/c
Save

Activate documents splitting
Same path
Select document splitting check box
Save

END USER AREA

Posting of sales (F-22)

Give the document date :Todays date
Type :DR
Company code :BIL

189

Posting key :01
Customer Account :100000
Enter
Amount :80000
Business area :BILH
Text :Sales invoice posting
Posting key :50
Account :300010 Sales Steel
Enter
Business area :BILH
Text :+
Select profitability segment button (right arrow button profit center steel)
Give the profit center Steel

One more item

Posting key :50
Account no. :300011 Sales Cement
Enter
Amount :*
Business area :BILH
Text :+
Select profitability Segment right arrow button
Give the profit center :Cement
Document –Simulate
From the menu select Document –Simulate
General ledger button
Save
From the menu select Document –Display

190

Select general ledger View button

CENTRAL EXCISE AND SALES TAX

CIN: Country India Version

MM Consultant
SD consultant
FI consultant –Creation of accounts and assignment of accounts

Central excise is an Indirect Tax

This will be charged at the time of sales, sales men (Removal of goods)

Central excise registration :15 digits code

(10 digits will be income tax PAN + 5 digits central excise)

Central excise registration will be plant wise
Central excise rates are given in central excise tariff chapter IDs :8 digits code
Under chapter id we have material description and rate
Basic Excise Duty (BED) 14% maximum (now changed to 10%)
Additional excise duty (AED) –Products like textiles

15% of basic amount –Now no AED
Special Excise Duty (SED)- Tobacco related products
8% on invoice original value
Education cess 2% (on 8% excise duty)
Higher and secondary education cess 1% (on 2% ED)

CEN VAT (Central Excise Value Added Tax) –Earlier MODVAT

Where we pay excise duty at the time of purchase, the excise amount can be adjusted
when we pay excise duty on sales to excise dept.
(Though collected from customer)

RG23A Part 1 Quantity updation - Excise duty on consumable
Part 2 value updation - 100% CENVAT same year

RG23C Part 1 Quantity updation – Excise duty on Capita Goods
Part 2 value updation - 50% current year 50% next year

191

PLA Personal Ledger Account
Bank excise credits and debits

ER1 (Excise return 1) (Earlier it was RT12 monthly return)
To pay excise before 5th of next month
To file the return before 10th next month

RG1 Finished goods register

Purchase scenario:

Consumable purchase capita goods purchase (stores)

Basic price 100 200
Excise 8% 8 10% 20
---- ----
108 220
VAT 4% 4.32 8.8
----- ----
112.32 228.8

Goods receipt for consumables

A) Goods receipt entry

To GR/IR clearing RM LCL 100

B) Excise entry

RG 23 A BED DR 8
To CENVAT clearing 8

Invoice verification for consumables

GR/IR clearing RM LCL DR 100
CENVAT clearing A/c DR 8
VAT Receivable DR 4.32
To party 112.32

Goods receipt for capital goods

A) Goods receipt entry
Inventory stores local DR 200

192

To GR/IR clearing stores Local 200
B) Excise entry

RG 23C BED DR 10
CENVAT on hold DR 10
To CENVAT clearing a/c 20

Invoice verification for capital goods

GR/IR clearing stores LCL DR 200
CENVAT clearing a/c DR 20
VAT Receivable DR 8 .08
To party 228.08

Sales scenario
Basic price 1000
Excise rate 14% 140
-----
1140
VAT 12.50% 142.5
-------
1283

Sales billing :
Customer A/c Dr 1283
To Sales 1000
To CENVAT suspense 140
To VAT payable 142.50

Excise invoice creation
CENVAT suspense a/c Dr 140
To Excise duty payable 140

Excise Balances:

RG23A RG23C PLA
Purchase 8 10
Payable on sale 140
To pay 5 6 129

PLA Deposit
PLA A/c Dr 150
To Bank 150

Excise utilization

193

Excise duty payable DR 140
To RG23A BED 5
To RG23C BED 6
To PLA 129

10) Sales tax Payment to Dept

VAT Payable 143
VAT Receivable 13
To Bank 130

VAT Payable Dr 143
To VAT Receivable 13.10
To Bank 129

11) Final balances in excise registers

RG23A RG23C PLA
Purchase /Deposit 8 10 150
Utilized at the time of sale 5 6 129
-----------------------------------------------------------------
Closing balance 3 4 21
======================================
SAP:

Tax procedures TAXINJ: Formula based
TAXINN condition based

In new implementations –TAXINN
Client 000-SAP has given TAXINN and TAXINJ
Excise conditions /Service tax conditions / Education cess conditions /Sales tax
conditions.

CENTRAL EXCISE CUSTOMIZATION

Activate Country Version India for specific fiscal year

Path :SPRO-Financial accounting –Financial accounting global settings –Tax on
sales /purchases –Basic settings- India-Activate country version India for specific fiscal
years

Component :select IND

194

Enter
For component IND select active check box
Save

Check and change settings for tax processing

Path :Up to tax on sales / purchases the path is same –Basic settings-Check and
change settings for tax processing

Process :B1
Description :A/P Basic Excise duty (A/P BED)
Tax type :select 2 (input tax)
Posting indicator :select 2 (separate line item)
Save
Select back arrow
Select process :B1
Change the process to B2
Change the description :A/P CST
Posting indicator :select 3 (Distribute to relevant expense /revenue items)
Enter & Save
Select :B1,B2
Change description to APVAT
Enter
Change the description to AR VAT
Press enter and Save
Change process to B5

195

Change description to AR CST
Change tax type to :1
Posting indicator :2 separate line item
Enter and Save
Select B5
Change the description to AR VAT
Press enter & Save

Define condition types:

Path :Up to tax on sales /purchases the path is same -Basic settings-Check calculation
procedure –Double click on define condition types

Condition type :BIL1
Description :AP Excise BED
Access sequence :select JTAX (IN: Excise Access)
Condition class :select D (Taxes)
Calculation type :select A (percentage)
Condition category :select D (Tax)
Select item condition check box
Save
Select back arrow
Select :BIL1
Change the condition type change to :BIL2
Change the description to :APCST
Access sequence :Change to JST1 (India Sales tax access)
Enter & Save

196

Select :BIL2
Change condition type to :BIL3
Change description :A/P VAT
Enter & Save

Define procedures

Path :Up to tax on sales /purchases the path is same –Basic settings –Check
calculation procedure

Double click on define procedures
Procedure :TAXINN
Description :Sales tax India
Save

Select :TAXINN
Double click on control data folder


Step Condition Description From To Statistics Print Base Account
type type key
100 Select Base Select
BASB amount 362
110 Calculated 100 100 Select
cell static’s
check
box
120 BIL1 AP Excise 100 100 Select B1
BED X
150 Basic 110 140 Select
+Excise static
check
box

160 BIL2 A/P CST 150 150 Select B2

197

X
170 BIL3 A/P VAT 150 150 Select B3
X

Save

Assign country to calculation procedure

Path :Up to tax on Sales /Purchases the path is same –Basic settings –Assign country
to calculation procedure

Country :IN for India
Enter
For country IN assign procedure TAXINN
Save

Define tax codes for sales and purchases

Path :Up to tax on sales / purchases the path is same –Calculation –Define tax codes
for sales and purchases (Tr code is FTXP)

Give the country :IN
Enter
Tax code :V0
Enter
Give the description :0% Input tax
Tax type :V (input tax)
Enter
Save
Tax code :V1
Enter
Description :V1 Dummy tax code for purchases
Tax type :V for input tax
Tax percentage rate :0
Enter & Save

198

Tax code :A0
Enter
Description :0% output tax
Tax type :A ( out put tax)
Enter & Save
One more tax code
Tax code :A1
Enter
Description :Dummy tax code for sales
Tax type :A (Out put tax)
Enter & Save

Creation of GL masters (FS00)
To Copy

200156 RG23A BED A/c Current assets, Loans & Advances to copy 200155 VAT
receivable

200157 RG23C BED A/c Current Assets, Loans and Advances to copy 200155
VAT
receivable

200158 CENVAT on hold Current Assets, Loans and Advances to copy 200155
VAT receivable

200159 PLA Account Current Assets, Loans & Advances to copy 200155 VAT
Receivable

200155 VAT receivable already created

100506 CENVAT A/c clearing current liability provision copy 100505 VAT
payable

100507 CENVAT A/c suspense current liability & provisions copy 100505 VAT
payable

100508 Excise duty payable A/c current liability & provision copy 100505 VAT
payable

199

100509 CST payable A/c current liabilities & provision X copy 100505

100505 VAT payable already created

Save

Note :In all accounts tax category * posting without check box

Define tax accounts

Path :Up to tax on sales /purchase the path is same posting –Define Tax accounts (Tr
code is OB40)

Double click transaction B1 A/P Excise BED
Give the chat of accounts :BIL
Enter
Save
Select posting key button
Debit 40
Credit 50
Save
Select accounts button
Give the account no.100506 CENVAT clearing A/c
Save
Select back arrow
Double click on transaction B3 APVAT
Save
Debit 40
Credit 50
Save

200

Give the A/c no.200155 VAT receivable
Save

Maintain excise registration

Path :SPRO-Logistic general –Tax on goods movements –India –Basic settings –
maintain excise registrations

Excise registration :2
(ECC number means excise control code)
ECC no. 1234
Excise Registration no.(15 digits code)
(10 digits PAN other 5 Excise no.) :123456
Excise range :Kukatpally range
Excise division :Kukatpally division
Commissionerate :Hyderaba commissionerate
Excise invoice items(EI) :999
Select partial credit check box
Save

Maintain company code settings
Same path

CENVAT document type :SA
Utilization FI document type :SA

201

Select debit account override check box
Select auto adjustment indicator check box
Select immediate credit on capital goods check box
First month “select April
Excise selection days :30 days
No.of excise invoice selection :999
Excise invoice selection procedure :FIFO
Save

Maintain plant settings:
Same path

Plant :BILP
Excise registration :002 (This is plant level)
No.GRS per Excise invoice :select Multiple goods receipt multiple credits
Save

Maintain excise groups:
Same path

Excise group :2
Description :Excise group for BILP
Plant :BILP
No.GRS per excise invoice multiple goods receipts, multiple credits
Select default challan quality in GR check box
Select EI capture check box under MIGO settings
Select post excise Invoice MIGO check box
Select duty different at GR check box
Select update RGI at MIGO check box
Save

202

Note :MRO –Invoice verification

Maintain series groups
Same path
Series group :2
Series description :BILP series group
Save

Maintain excise duty indicators:
Same path
Excise indicator 1 :100% Tax
Excise indicator 2 :50% Tax
Excise indicator 3 :Nil Tax
Save

Maintain excise defaults:

path :Up to India the path is same –Basic settings –Determination of excise duty –
maintain excise defaults

select new entries button
Tax procedure :TAXINN
CVD condition JCV1:
A/P BED condition type :BIL1
A/R BED condition type :BILA
BED percentage :BIL 4
Save

Maintain chapter ID’s:(8Digists excise code)

Path :Up to India the path is same –Master data –Maintain chapter Id’s

Chapter ID :50000001
Unit of measurement for excise kg
Description as per law :Chemicals
Save
Create request in your Work Bench Request for BIL
save
Select next entry (F8) button

203

Chapter ID :55000001
Unit of measurement for excise kg
Description as per law Steel
Save

Specify G/L Accounts per excise transaction

Path :Up to India the path is same –Account determination –specify GL accounts per
excise transaction

Excise group :select 2
Excise transaction type :GRPO (Excise Invoice for goods receipt against PO)
Company code :BIL
RG23A BED :200156
RG23C BED :200157
MODVAT clearing :100506 (CENVAT clearing )
G/L account per PLA BED :200159
CENVAT on hold :200158
CENVAT suspense account :100507
PLA on hold :200159
Save
The same way the you send the accounts for all excise transaction types.
For excise transaction type DLFC same as above
Save
Note : PLA on Hold Dr
To Bank

PLA A/c Dr
To PLA on Hold A/c
(This is used for next year carry forward)

204

Specify SAP Script forms

Path :Up to India the path is same –Business transactions –Excise registers –Specify
SAP script forms

Select all the registers of company Code :IN01
Change the company code to BIL for Registers and returns
Save press enter to save in your request

Maintain number ranges
Path :Up to India the path is same –Tools-Number ranges

Object :Select J_1IINTNUM (Internally document number to be generated )
Select number rages button
Number rage :01
Year :2008
From no. :1
To no. :100000
Save
Object :Select J_1IRG23A1 (RG23A part 1 no. range object)
Select number rages button
Excise group :select 2
No. range :01
Year :2008
From number :100001
To number :200000
Enter & save

205

Object :J_1IRG23A2 This is (RG23A part II Number rage object)
Select number rage button
Excise group :2
No.range :01
Year :2008
From no. :200001
To no. :300000
Enter & save
Select object J_1IEXCLOC (Local excise invoice number rage for sales)
Select number ranges button
Series group :2
No.range :01
Year :2008
From number :300001
To number :400000
Enter & Save
Select object :J_1IINTPR2 despatch series number
Select number ranges button
Excise group :2
No.range :01

206

Year :2008
From no. :500001
To no. :600000
Enter & save

Excise rates maintenance

Use the Tr code is J1ILN (India local menu) (This have no path)

Path :Indirect taxes -Master data -Excise rate maintenance (Tr code is J1ID)

Select material & chapter ID combination radio button
Select maintain button(F5)
Material :BILRM1
Plant :BILP
Chapter ID :5000001 Chemicals
Material type :Raw materials
GR with reference :select multiple goods receipt , multiple credits
Declared :1
Declaration date :29.02.2008

One more
Material :BILFG
Plant :BILP
Chapter ID :5500001 Steel
Material type :RG1
GR with reference :Multiple goods receipts, Multiple credits
Declared :1
Declaration date :29.02.2008
Save
Select back arrow

207

Select CENVAT determination radio button
Select maintain button

Input material :BILRM
Output material :BILFG
Intimation date :01.04.2008
Save
Select back arrow
Select vendor excise details radio button
Vendor :2001
Excise indicator for vendor :1 ( 100% Tax)
Type of vendor :select manufacturer
Save
Select back arrow
Select customer excise details radio button
Select maintain button (F5)
Give the customer no. :200101
Excise indicator for customer :select 1 (100% Tax)
Save
Select back arrow
Select excise indicator for plant radio button
Company code :BIL
Plant :BILP
First month :select April

208

Excise indicator for company :select 1 (100% Tax)
Save
Select back arrow
Select excise indicator for pant and vendor radio button
First column excise indicator :select 1
Second column excise tax indicator for vendor :select 1 (100% Tax)
Third column excise tax indicator for vendor :Select 1 (100% tax)
Save
Select back arrow
Select excise indicator for plant & customer radio button
First column excise tax indictor for company :select 1 (100% tax )

Second column Excise indicator for vendor :Select 1 (100% tax)
Third column excise tax indicator vendor :select 1 (100% tax)
Save

Creation of condition records
(FV11) (No path this one)

Condition type :select BIL1 AP Excise basic
Select plant /vendor /material radio button
Enter
Plant :BILP
Vendor :2001
Material :BILRM1
Amount :8 (Excise rate & Tax rupees)
Valid to :31.03.2009

209

Tax code :V0
Save
Select back arrow
Condition type :BIL3 A/P VAT
Select plant /vendor /Material radio button
Plant :BILP
Vendor :2001
Material :BILRM1
Amount :4
Valid to :31.03.2009
Tax code :V0
Save

SD Excise customization

SD consultant job

Define condition types

Path :SPRO-Sales & Distribution –basic functions –Pricing –Pricing control –Define
condition types

Double click on maintain condition types
Condition type :BIL4
Description :A/R Basic excise duty (AR BED)
Access sequence :JEXC (India Excise Access)
Plus/ Minus :Select A Positive
Condition class :select A discount or Surcharge
Calculation type :select A (Percentage )
Select Item condition check box
Select amount /percentage check box

210

Save
Select back arrow
Select :BIL4
Change the condition type to BILA
Description A/R Excise BED (100% copy)
Access sequence :select JDUM (India 100 copy of other fields are values)
Enter & Save
Select BIL4 & BILA
Change condition type to BIL5
Description :A/R CST
Access sequence :select JCST (India Central Sales Tax :Access)
Plus / Minus : Blank
Calculation type :A (Percentage)
Condition class :change to D (Taxes)
Condition category :select D (Tax)
Enter
Change the condition type to BIL6
Description :AR VAT
Access sequence :change to JLST (India Local sales tax access)
Plus or Minus :Blank
Calculate type : A (Percentage)
Condition class :select D taxes
Condition category :select D tax
Enter & save

Define account keys:

Path :SPRO-Sales & Distribution –Basic functions –Account assignment/costing –
Revenue account determination –Define and assign account keys –Double click define
account key

211

Account key :B4
Name :A/R Excise BED

Account key :B5
Name :AR CST

Account key :B6
Name :AR VAT
Save

Check and change settings for tax processing

sales /Purchases –Basic settings –Check and change settings for tax processing

Select B2 and B3
Change the description to A/R CST
Tax type :select 1 (Output tax)
Posting indicator :select 2 (separate line item)
Enter
Change process to :B6
Change the description to A/R VAT
Tax type :change to 1 Output tax
Enter & save

Define tax accounts:

Path :up to Tax on sales /Purchases the path is same –Posting –Define tax accounts
(Tr code is OB40)

Double click on truncation :B5 AR CST
Give your Chart of Accounts :BIL
Enter

212

Save
Debit :40
Credit :50
Select save button

Give the account no.100509 CST (payable)
Save

Select back arrow
Double click on transaction :B6 ARVAT
Save

Debit :40
Credit :50
Save
Give the account no.100505 VAT payable
Save

Maintain pricing procedures

Path :SPRO-Sales & Distribution –Basic functions –Pricing –pricing control –Define
and assign pricing procedures

Double click on maintain pricing procedures
Procedure :BIL
Description :BIL domestic Pricing procedure
Save

213

Select :BIL
double click on control data folder

Step Condition Description From To Require Statistics Print Account
type key
100 PR00 Price Select X ERL
Check
box (√)
Subtotal 100 100 Select Select
Check Check
box (√) box (√)
200 BIL 4 A/R Basic 100 100 B4
excise duty

+Excise Check
box (√)
400 Base value 100 -- Select
Check
box (√)
410 BILA A/R BED 200 200 Select X
(100% Check
copy) Basic box (√)
+Excise
420 400 410 Select
Check
box (√)
450 BIL5 AR CST 420 X B5
460 BIL6 AR VAT 420 X B6
+Excise+ Check
Sales tax box (√)
Save

Define pricing procedure determination

214

Path :Up to pricing control the path is same –Define and assign pricing procedures (
Tr code is OVKK)

Double click on define pricing procedure determination
enter
For BILS change the pricing procedure to BIL
Save

Define tax determination rules

Path :SPRO-Sales and Distribution –Basic functions –Taxes –Define tax
determination rules

Tax country :IN
Sequence :1
Tax category :BIL5

Tax country :IN for India
Sequence :2
Tax category :BIL6 Name:A/R VAT
Save

Define tax relevancy of mater records:
Same path
Double click on customer taxes

Tax category Name Tax classification Description
BIL5 A/R CST 0 Nil Tax
BIL5 A/R CST 1 Taxable
BIL6 A/R VAT 0 Nil Tax
BIL6 A/R VAT 1 Taxable
Save

Select back arrow
Double click on material taxes

Tax category Name Tax classification Description
BIL5 A/R CST 0 Nil Tax

215

BIL5 A/R CST 1 Taxable
BIL6 A/R VAT 0 Nil Tax
BIL6 A/R VAT 1 Taxable

Save

Assign delivering plants for tax determination (OX10)
Same path

Plant :BILP
Enter
Select plant :BILP
Select address button(Shift +F5)
Region :select AP (Andhra Pradesh)
Enter & Save

Assignment of accounts for automatic postings
Tr code is VKOA

Double click on Table 1
Application area :V
Condition type :KOFI
Account assignment group for customer :01 domestic revenues
Account assignment group for customer :03 finished goods

Account assign group for account key :B4 AR Excise duty
GL Account 100507 (Send VAT suspense account)
Save

SD END USER AREA

Assign tax classification material master (Tr code is MM02)

216

Give the material no.BILFG
Select sales :sales organization data 1
Plant :BILP
Enter
For tax classification tax category BIL5 0 taxable
For tax classification tax category BIL6 1 taxable
Save

Enter tax classification in customer master (Tr code is XD02)

Select the customer :200101
Company code :BIL
Division :BS
Select customer sales area button
Double click on sales organization :BILS
Enter
Select sales area data button
Select billing documents tab
For tax category :BIL6
Tax classification :1 (taxable)
Save

Creation of condition records (Tr code is VK11)

Condition type :select BIL4 A/R basic excise duty
Select material radio button
Enter

217

Material :BILFG
Amount :10
Valid from to :01.04.2008
Valid to :31.03.2009
Save
Select back arrow
Select condition type BILA (A/R BED 100% copy)
Select sales organization radio button
Enter
Amount :100
Valid to :31.03.2009
Save
Select back arrow
Condition type :select BIL6 AR VAT
Select country /Plant/Region /Material radio button
Enter
Country :IN
Plant :BILP
Region :AP
Material :BILFG
Amount :4 (Percentage)
Valid to :31.03.2009
Tax code :select A1 (Dummy tax code for sales)
Save

218

To check whether 0% input tax code and 0% output tax code assigned to company code
to BIL

sales /Purchases -posting -Assign tax codes for non taxable transactions(OBCL)

Company code :BIL
enter
For company code :BIL
Input tax code :V0
Output tax code :A0
Company code :BIL
enter
For company code :BIL
Input tax code :V1
Output tax code :A1
Save

Creation of Purchase order (ME21N)

Purchase org :BILR
Company code :BIL
Vendor :2001
Enter
Give the purchasing group :BIL
Item :10
Material :BILRM1
PO Quantity :100 Kgs
Net price :75
Currency :INR
Plant :BILP
Enter

219

Select invoice tab
Tax code :select V1 dummy tax code for purchases
Enter
Select Taxes button
Select back arrow
Save
Not the purchase order no.4500017094

To open material periods for January (MMPV)

From company code ;BIL
period :10
Fiscal year :2008
Select check and close period radio button
Execute

(Note : Use the Tr code J1EI for creation of Excise Invoice no’s following the other
steps same above)
Give the Excise invoice no. and date

Goods receipt ( Tr code is MIGO)
Select goods receipt
Give the purchase order no.4500017094
Enter
Quantity in delivery note :100 kgs
Select item ok check box
Select where tab
Press enter
Select excise invoice tab
Give the excise invoice no.1
Excise invoice Date :Today’s date

220

Save
Select display button
Enter
Select document information tab
Select FI documents button
Select back arrow
Select excise invoice tab
Select more data button
Select part 2 tab

Invoice verification (MIRO)

Invoice date :05.01.2009
Posting date :11.01.2009
Reference :51
Select calculate tax check box
Text :Invoice verification
Tax code :V1 (Dummy tax code)
Purchase order no. :4500017094
Enter
Enter
Business area :BILH
Select payment tab :Base line date (Today’s date)
Payment term :0001
Enter & Save
From the menu select invoice document display
Select follow on documents button
To print excise registers: (Tr Code is J1ILN)

Path :Indirect taxes –Registers –Excise tax –Extract (J2I5)

221

Excise group :2
End date :31.01.2009
Select any register radio button
Select RG23A part I check box
Select RG23A part II check box
Execute
Enter
Select back arrow
Select print utility program (TR code is J2I6)
Select RG23A part 1 radio button
Execute

Excise group :2
End date :31.01.2009
Execute
Output device :LP01
Select print preview button
Select RG23A part II radio button
Execute
Excise group :2
End date :31.01.2009
Execute
Output devise :LP01
Select print preview button

To view sales tax register (Tr code is J 1 I L N)

Indirect taxes –Registers –Sales tax –sales tax register (J1I2)

222

Company code :BIL
Tax code :V1
LST condition type :BIL3
Execute

SD EXCISE

Creation of sales order (VA01)

Order type :OR
Division :BS
Enter
Sold to party :200101
PO Number :2
PO date :Today’s date
Required delivery date :Today’s date
Payment terms :0001
Item :10
Material :BILFG
Order quantity :10 Kgs
Enter
Select item :10
From the menu select Goto Item conditions
From the menu select Edit –In complication log (Ctrl +F8)
Select save button
Note the sales order no.11771

Delivery (Tr code is VL01N)

223

Give the shipping point :BILH
Order no. :1171
Enter
Actual goods inward received date :Today’s date
Select item :10
Select picking tab
Picked quantity :10 Kgs
Select post goods issue button
From menu select out bound delivery –Display
Enter
From the menu select Environment-Document flow
Keep the cursor on go goods delivery no.
Select accounts document button
Select account document no.

Post : Inventory FG 700
IN/DE Stock FG 700

Sales Billing (VF01)

Select the delivery no.
Save
From the menu select billing document –display
Select accounting button

Excise invoice creation (Tr code is J1ILN)

Path :Indirect taxes –Sales /Out bond movements-Excise invoices –For sales order –
Out going Excise invoice create /Change /Display (Tr code is J1IIN)

Select from billing button (F5)

224

Enter
Excise group to :2
Serious group :2
Select utilization button (F6)
Save

CENVAT suspense A/c Dr
To Excise duty payable

Go and see sales billing display (VF03)

Give the billing document no.90036108
Select accounting button

RG23A BED posting (F-02)

Type :SA
Company code :BIL
Posting key :40
Account no. :200156 (RG23A BED)
Enter
Amount :50000
Business area :BILH
Text :RG23A Debit
Posting key :50
Account no. :200105 Bank account
Enter
Amount :*
Business area :BILH
Text :+

225

PLA Deposit (F-02)

Type :SA
Company code :BIL
Posting key :40
Account no. :200159 (RG23A BED)
Enter
Amount :100000
Business area :BILH
Text :PLA deposit
Posting key :50
Account no. :200105 Bank account
Enter
Amount :*
Business area :BILH
Text :+

Excise duty payment: (Tr code is (J1ILN)

Path :Indirect taxes –Sales /Out bond movements –fortnightly payment (J2IUN)

Company code :BIL
Plant :BILP
Excise group :2
Period :01.03.2009 to Today’s date
Business area :BILH
Execute
RG23A Utilized :6.60
Select duty button

226

Select Simulate button (F7)
Select right mouse button
Save

Go and see the document (FB03)

Document no. :38
Company code :BIL
Fiscal year :2008
Enter

FINANCIAL STATEMENT VERSION

Balance Sheet and Profit & Loss account format creation

In India –Companies Act –Schedule VI format

Summary Schedules Amount

Share capital
Equity share capital 100000
Preference share capital 100001
Reserves & Surplus
General Reserves 100101
Capital Reserve 100102
Secured loans
Unsecured loans

By using 0-9 levels –we can get all 3 versions consultant creates 2 versions –Summary -
Schedules

In 000 Client SAP has given for India Bain.

Path :SPRO-Financial Accounting –General ledger Accounting-Business
transactions-Closing –Document-Define financial statement versions.

Financial statement version :BIL1

227

Name Balance Sheet and Profit & Loss account
Maintain Language :EN
Select item keys automatic check box
Save
Select financial statement item button
Keep the cursor on AML1
Select create items button
Give the items :Balance Sheet
:Profit & Loss account
:Net profit /Loss transfer to Balance Sheet
Enter
Kept the cursor on profit and loss account
Double click on No text exists against Liability +Equity
Give item :Liabilities
Enter
Double click no text exists against Assets
Give the item Assets
Enter
Keep the cursor on Assets
Press select button (beside reassign button)
Keep the cursor on Balance sheet
Select resign (Shift+F6) button
Select subordinate radio button
Enter
Keep the on liabilities
Press select button (F9)
Keep the cursor on Balance Sheet
Select resign button (Shift+F6)

228

Enter
Keep the cursor on Profit & Loss account
Select create item button
Give the items :Income
Give the items :Expenditure
Enter
Save
Keep the cursor on Liabilities
Give the Share capital
Reserves & Surplus
Secured loans
Unsecured loans
Enter
Keep the cursor on Assets
Give the items :Net Fixed Assets
:Net Current Assets
:Misc. expenditure to the extent not written off Eg: Preliminary
exp.
Enter
Keep the cursor on Income
Give the heads :Sales
:Other Income
:Inc/Dec in Stocks
Enter
Keep the cursor on expenditure
Select create item button

229

Expenditure :
Personnel expenses
Manufacturing expenses
Administration Expenses
Interest
Depreciation
Enter and Save
Double click no text existent against net result :Profit
Give the item :Net profit transferred from P & L Account
Enter
Keep the cursor on Net profit transfer from P & L Account
Keep the cursor on reserves & Surplus
Select reassign button (shift +F6)
Enter
Double click on no text exists against net result loss
Item :Net loss transferred from P & L Account
Enter
Keep the cursor on net loss transferred from P & L Account
Keep the cursor on Misc. Expense to extend not written off
Select reassign button
Enter
Save

Assignment of accounts are to be assigned to the last note

Keep the cursor on Share Capital

230

Select assign accounts button
Enter
From Account :100000
To Account :100099
Select debit check box
Select credit check box
To :199999
Note :Expect 100000 all are same
Enter
Keep the cursor on net fixed assets
To Account :299999
Enter
Keep the cursor on sales
From account :300000
To account :399999
Select debit and Credit check box
Enter
Keep the cursor on Raw material consumption
Select assign account button
To account :499999
Select Debit and Credit check box
Enter

231

Keep the cursor net profit/loss transferred to Balance Sheet
Select Assign account button
Select Debit & Credit Check box
Enter & Save
To check whether all accounts assigned or not
Select check button
Select non assigned account check box
Enter & Save

Liabilities Amount
Sources of Funds:
100000
100001
100002
Share capital 100003
------- X
100100
100101
Reserves & Surplus 100102
Secured loans X
Unsecured loans X
------
Total Liabilities X
=====
Double click on liabilities
Start of group Liabilities
End of group total liabilities

Select display total check box
Enter
Double click on share capital
Start of group :Source of funds
End of group :Share capital
Select display totals check box
Enter

232

Double click on Reserves & Surplus
End group :Reserves & Surplus
Enter
Note :Same way secured and unsecured loans
Double click on assets
Start of group :Assets
End of group :Total Assets
Enter
Double click on Net fixed Assets
Start of group :Application of funds
End of group :Net fixed Assets
Enter
Double click on Misc. expenditure to extend not written off
End group Misc. expenditure to the expend not written off
Select display totals
Enter
Double click on Profit & Loss Account
End of Group :Net Profit /Loss for the year
Enter
Double click on Income
Start of group :Income
End of Group :Total Income
Enter
Double click on sales
End of Group :Sales

233

Enter
Double click on Expenditure
Start of group :Total expenditure
Enter
Double click on Raw material consumption
End of group :Raw material consumption
Enter
Double click on net profit /Loss transferred to Balance sheet
Start of group :Net Profit /Loss transferred to balance Sheet
Enter
Double click on No text exist against P & L result
Item :Net profit/Loss transferred to Balance Sheet
End of Group: Net profit/Loss transferred to Balance Sheet
Enter & Save

Open one more session :

Path :Accounting-Financial Accounting –General Ledger-Information system—
General Ledger reports-Balance Sheet/Profit loss Statement /Cash flow-General –
Actual/Actual comparisons- Balance sheet/Profit Loss Statement (S_ALR_87012284)

Company code :BIL
Business area :BILH
Financial Statement version :BIL1
Reporting year :2008
Reporting period :1 to 16
Comparison year :2007
Comparison periods :1 to 16
Select classical list radio button

234

Select special evaluations tab
Balance sheet type :1 (Standard Financial Statement )
Select output control tab
Company code summarization :Select 1 (Balance sheet per company code)
Business area summarization :select 1(Balance Sheet per business area)
Summary report :3
Comparison type :1

Note :2 types of comparison in SAP
2008 2007
Sales 100 75
1) Percentage of Increase Current year –Previous year *100
----------------------------------
Previous year
100-75/75*100=33.3

2) Percentage of growth :Current year *100
--------------------
Previous year
100/75=133

Scaling :5/2

Scaling note :
A) Only Rupees without paise 0/0
B) Rupees with paise 0/2
C)Rupees in lakhs –without decimals 5/0
D)Rupees in mission without decimals 6/0
E)Rupees in crores without decimals 7/0
F)Rupees in laksh –Thousands in decimals 5/2

Sales 987654321.55
Rupees in lakhs (100000) 5 Decimals

2 decimals 2 decimals 9876.54

235

Select back arrow
Select special evaluations tab
Give the display currency dollar execute

ASSET ACCOUNTING REPORTS:

1.Depreciation forecast

Path :Accounting –Financial accounting –Fixed assets –Information system –Reports
on asset accounting –Depreciation for cost –Depreciation on capitalized assets
(Depreciation simulation) (Tr code is S_ALR_87012936)

Report date :31.03.2011
Execute

2. Fixed asset schedule as per schedule VI of companies Act

Gross Additi Sales Gro Dep. Acc.De Dep. Dep Acc. Net Net
block ons /Trans ss for p.in the for on Dep blo block
in the during fers blo the beginni the sales in the ck in the
beginn the during ck year ng of year /Trans year in beginn
ing year the in end year fer the ing
year year the yea
yea r
r end
end

Information systems –Accounting –Financial accounting –Fixed assets –Asset History
sheet (Tr code is AR02

Give your company code :BIL
Report date :31.03.2009
Select group totals only radio button
Execute

(Note :Retirement mean sale of asset)

Select asset button
Double click on asset retirement

236

PROJECT

BIL group (to go for ERP)
Packages available Cost / Feature/Time

ERP Packages
SAP
Oracle Financials
JD Edwards
People soft

Decided to go for SAP –Consulting firms Cost/Support /Experience

1) WIPRO
2) Infosys
3) Satyam
4) Intell
5) Zensar

Buy SAP package from SAP-India –Bangalore with the support of WIPRO –Hyderabad
vendors.

Implement all the modules at all locations (BIG Bang project) or in a phased manner

BIL WIPRO
A) Project Manager A) Project Manager
B) Accounts Manager B) FI Consultant
C)Cost Accountant C)Co Consultant
D) Purchase Manager D)MM Consultant
E) Sales Manager E)SD Consultant
F)IT Staff F) BASIS Consultant
G) ABAP Programmers

Kick of Date means Start date

Form a steering committee

BIL Senior people
WIPRO Senior people

237

Project Mangers BIL and WIPRO

BIL core team members –As is process existing process and requirements from SAP

WIPRO- Study the process and prepare to be process

GAP reports –Write to SAP the requirement /through programmer/work around /user
exits.

WIPRO-Customization based clients requirement .
BIL core team –Testing
WIPRO –Customization document

Before going live
Training to the BIL company users will be given

Fix ago live date:
Customization will be transported from development client to production client.

Up load masters in production client

Upload balances in production client

Give the number ranges in production client.

On go live date :Enter transactions in production client.

Support: For the issues raised by BIL end users.

Rollouts : Implementing SAP in different locations afterwards

ASAP Methodology (ASAP –Accelerated SAP)
1. Project Preparation
2. Business blue print
3. Realization
4. Final preparation
5. Go and live and support

OSS mean Online Support Service

Land Scape
1. Development Quality testing Production
SAND box –All scenarios configuration selected scenario Testing

2. Development Production

238

R/ 3 Structure
Presentation application data base SAP Package data stored in data base server

239

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