40737103 Actual Costing Material Ledger
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Transcript of 40737103 Actual Costing Material Ledger
© SAP AG 2009. All rights reserved. / Page 2
Part A – Inventory Accounting with Material LedgerPart B – Alternative Valuation RunPart C – Distribution of Usage VariancesPart D – Revaluation of Consumption at Actual CostsPart E – Revaluation of Cost of Goods Sold at Actual Costs
Agenda
Legal Disclaimer
This presentation is a preliminary versionand not subject to your licenseagreement or any other agreement withSAP. This document contains onlyintended strategies, developments, andfunctionalities of the SAP® product and isnot intended to be binding upon SAP toany particular course of business,product strategy, and/or development.Please note that this document is subjectto change and may be changed by SAP atany time without notice. SAP assumes noresponsibility for errors or omissions inthis document.
© SAP AG 2009. All rights reserved. / Page 5
1. Divider headline2. Divider headline3. Divider headline4. Divider headline
Agenda
© SAP AG 2009. All rights reserved. / Page 6
1. Divider headline1.1. Subdivider headline1.2. Subdivider headline
2. Divider headline2.1. Subdivider headline2.2. Subdivider headline
3. Divider headline3.1. Subdivider headline3.2. Subdivider headline
4. Divider headline4.1. Subdivider headline4.2. Subdivider headline
Agenda
Parallel CurrenciesParallel CurrenciesValuation with HistoricValuation with HistoricExchange RatesExchange Rates
Actual CostingMulti-level Periodic Material Prices
Parallel ValuationParallel ValuationTransfer pricesTransfer prices
Group Legal Profit Center
TransparencyTransparencyof Value Chainof Value Chain
Actual CostingActual CostingMultiMulti--levellevelPeriodic Material PricesPeriodic Material Prices
MaterialMaterialLedgerLedgerInventory ValuationInventory Valuation
External Procurement External Procurement
Production
Production
Mutli-Level Actual Costing
MultiMulti--Level Actual Costing allowsLevel Actual Costing allowsInventory valuation withInventory valuation withactual periodic material priceactual periodic material price
RollRoll--upup of price differencesof price differencesfrom raw materials tofrom raw materials tofinished materialsfinished materials
Integration ofIntegration ofMultiMulti--LevelLevelActual CostingActual Costing
Integration of Actual Costing
Product CostProduct CostPlanningPlanning
Standard Prices&Cost ComponentSplit
ProfitabilityProfitabilityAnalysisAnalysis
ContributionMargins
Cost CenterCost CenterAccountingAccounting
Actual Prices ofActivities andBusiness Processes
Actual Costing and Profitability Analysis
Actual values in Profitability AnalysisActual values in Profitability AnalysisContribution Margin AccountingContribution Margin AccountingCost of salesCost of sales split intosplit into cost componentscost componentsPlan/ActualPlan/Actual Variance analysisVariance analysis
PlanPlan ActualActual Var. %Var. % Var. Abs.Var. Abs.RevenuesRevenues:: 10,000 US$10,000 US$
Sales Quantity:Sales Quantity: 1,000 pc1,000 pc
50,00050,000 45,00045,000 5,0005,000 10 %10 %Raw MaterialsRaw Materials4,0004,000 5,0005,000 --1,0001,000 -- 25 %25 %Labor variableLabor variable4,0004,000 4,5004,500 -- 500500 -- 13 %13 %Machine variableMachine variable
10,00010,000 7,0007,000 3,0003,000 30%30%Logistic ProcessesLogistic Processes5,0005,000 5,5005,500 -- 500500 -- 10 %10 %Material OverheadsMaterial Overheads
6,0006,00027,00027,000 33,00033,000 22 %22 %Contribution Margin IContribution Margin I10,00010,000 10,00010,000 00 0 %0 %Labor fixLabor fix7,0007,000 7,0007,000 00 0 %0 %Machine fixMachine fix
10,00010,000 16,00016,000 6,0006,000 60 %60 %Contribution Margin IIContribution Margin II
Actual Costing and Cost Center Accounting/ABC
Production Material
Cost CenterActivities
BusinessProcesses
Actual ./. PlanActual ./. Plan
Actual ./. PlanActual ./. Plan
PlanPlan StandardStandard PricePrice
SettlementSettlement
Direct settlement to materials:Direct settlement to materials:ActualActual activity pricesactivity prices
Actual costs ofActual costs of businessbusinessprocessesprocesses
Actual Costing and Product Cost Planning
Variance AnalysisVariance Analysis
Actual Costing withActual Costing withCost ComponentsCost Components
BOMRouting
PP Master Data
Mat Proc OHLab
Standard PriceStandard Pricewithwith
Cost Component SplitCost Component Split
Product CostProduct CostPlanningPlanning
Cost Estimate
Material Movements
Mat Proc OHLab
Periodic Unit PricePeriodic Unit Pricewithwith
Cost Component SplitCost Component Split
MultiMulti--LevelLevelActual CostingActual Costing
Price Determination
Actual Quantity Structure
Same cost componentSame cost componentstructure as in planningstructure as in planning
No Cost EstimatesNo Cost Estimatesnecessary for Actualnecessary for ActualCostingCosting
Optional: Primary costOptional: Primary costcomponent splitcomponent split
The Actual Cost Component Split is a strategic tool for
Sourcing Decisions based on procurement alternatives
Analyzing the actual value added in each production level
Ending Inventory 400 32,400 21,800 4,000 2,200 1,460 81,00
Category Qty Value Material Labor Process OH PriceMachine
Trading Inc 200 18,000 18,000 90,00Best Price Ltd 100 8,000 8,000 80,00
Prod. Version1 500 38,500 20,000 7,000 4,000 2,500 77,005,000
Receipts 900 72,600 50,000 8,500 4,800 3,100 81,006,200Purchase Order 300 26,000 26,000 87,00
Production 500 38,500 20,000 7,000 4,000 2,500 77,005,000
Beginning Inventory 100 8,400 4,500 1,500 700 550 84,001,150
Cumulative Inventory 1,000 81,000 54,500 10,000 5,500 3,650 81,007,350Consumption 600 48,600 32,700 6,000 3,300 2,190 81,004,410
2,940
... 100 8,100 4,000 1,500 800 600 81,001,200
Actual Cost Component Split
Price Analysis for selected MaterialsPrice Analysis for selected MaterialsHuge number of monetary and quantity key-figuresMultiple sorting and summarization functionsEasy-to-customize to fit personal needsDirect drill-down tools to detailed views and documentsEasy error finding
Material Price Analysis
Material Plant Std.Price Act. Price Var.absVar. %
PC 600 Pentium London 3,500 3,920 420 12 %PC 500 Pentium London 2,500 2,900 400 16 %
PC 330 Pentium Frankfurt 1,500 1,635 135 9 %Monitor 17‘ London 400 432 32 8 %Digital Camera xms Frankfurt 750 805 55 7,5 %Digital Camera xms London 950 1020 70 7,4 %PC Pentium 200 Frankfurt 800 855 55 7 %
Total ... ... ... ... ...... ... ... ... ... ...
Material Price Analysis (2)
Price analysis for single MaterialsPrice analysis for single MaterialsPrice historyProcurement controllingPlausibility checks, and more
Category Quantity PrelValue PriceDif Price
Trading Inc 200 2,000 1,200 16,00Best Price Ltd 100 1,000 300 13,00
Prod. Version1 500 5,000 500 11,00
Receipts 900 9,000 2,340 12,60Purchase Order 300 3,000 1,500 15,00
Production 500 5,000 500 11,00
Beginning Inventory 100 1,000 160 11,60
Cumulative Inventory 1,000 10,000 2,500 12,50Consumption 600 6,000 1,500 12,50Ending Inventory 400 4,000 1,000 12,50
... 100 1,000 340 13,40
Actual Costing in the Workplace
Cost AccountantCost Accountant
Cost AccountingManager
Cost AccountingManager
InventoryAccountant
InventoryAccountant
Sales BusinessAnalyst
Sales BusinessAnalyst
Cost EstimatorCost Estimator
BusinessUnit AnalystBusinessUnit Analyst
InventoryAccountant
InventoryAccountant
ProcurementProcurement
Inventory Accountant: Areas of Responsability
ActualActualCostingCosting
PlanningPlanning
StockStock
BalanceBalanceSheet ValuationSheet Valuation
InventoryInventoryCountingCounting
Actual Costing in the Workplace
Represented in WorkplaceRepresented in WorkplaceInventory AccountantInventory Accountant
ActualActual periodicperiodicMaterialMaterial PricePrice
Integration withIntegration withProduct Cost PlanningProduct Cost Planning
Integration withIntegration withProfitability AnalysisProfitability Analysis
Integration withIntegration with ABCABC andandCost Center AccountingCost Center Accounting
MultiMulti--LevelLevel RollRoll--upupof Priceof Price VariancesVariances
© SAP AG 2009. All rights reserved. / Page 19
Part A – Inventory Accounting with Material LedgerPart B – Alternative Valuation RunPart C – Distribution of Usage VariancesPart D – Revaluation of Consumption at Actual CostsPart E – Revaluation of Cost of Goods Sold at Actual Costs
Agenda
Alternative Valuation Run (AVR) Concept
Reuses data collected in Periodic Actual Costing
Influencing Factors:Material prices based on longer time periods : CumulationParameters can be varied to calculate alternative results for actual material costs:Alternative valuation
Multiple (alternative) runs are possible for each period andmaterial (999)
Advantages of using the AVR
Cumulation:Smooth out seasonal or random changesFull absorbance of cost center costs although output is zero in some monthsDecrease influence of work in process, beginning, and ending inventory
Get an overview of how prices influence processes over a whole business year
Alternative Valuation:Support alternative valuation rules for stocks from IAS, US-GAAP, HGB, and so on.Use activity prices that differ from the operational activity prices
Cumulation of Periods
Instead of actual costs only being based on a single period (month), all price relevanttransactions from a multitude of periods are calculated together.
This process uses the:Cumulated actual quantity structureCumulated single level differences from production or procurementCumulated activity pricesBeginning inventory from the first periodEnding inventory from the last period
Cumulation Average of Periods!Example follows...
Example: Average from Periods
Period 01 Period 02$1000
90KG 10KG
$100$900
$100
10KG 90KG
$90$10
Product A$19.10
$1100
100 KG 100 KG
$190$910
Product B$11.90
Product A$20
Product B$20
Product A$11
Product B$11
Period 1 + 2
Example: Cumulation
Period 01 Period 02$1000
90KG 10KG
$100$900
$100
10KG 90KG
$90$10
Product A$15.50
$ 1100
100 KG 100 KG
$550$550
Product B$15.50
Product A$20
Product B$20
Product A$11
Product B$11
Cumulated Calculation forPeriod 1 + 2
Alternative Valuation
Valuations can vary by run
For materials:Different split between valuation of ending inventory and consumption
Change ending inventory valuation and CCS using a BADI (ENDING_INVENTORY)Use an external price for ending inventory, for example, FIFO price determined in balancesheet valuation (Table CKMLPR_EB)
Manual change of material price and cost component splitManipulate cumulated data using a BADI (CKMLAVR_SIM)
For activities:Different types of activity prices
Planned activity prices (CO version > 0)Periodic actual activity prices (CO version = 0)Cumulative actual activity prices
Run Definition
A run consists of
Definition:A collection of parameters
Plants taking partBeginning and ending periodSettings
A name and a long text
Steps to complete all of the actual costing processes
ResultsReporting and analysisPostings: FI and cost centersUse in CO-PA
Run processing Steps
A run consists of
Definition:A collection of parameters
Plants taking partBeginning and ending periodSettings
A name and a long text
Steps to complete all of the actual costing processes
ResultsReporting and analysisPostings: FI and cost centersUse in CO-PA
Process Step: Determine Actual Prices
Without AVR:
The determination of actual activity prices in Cost Center Accounting (TransactionKSII) allows you to either calculate and store periodic or cumulated activityprices.
With Step „Determine Actual Prices“ in the AVR:
Cumulated actual activity prices can be stored additionally in their own version.Actual data is used from version 0, but the results are written to an additionalversion.
Aim:
Periodic ML uses periodic activity prices, AVR uses cumulated activity prices
Process Step: Posting
The Determine Delta Postings and Post Closing steps are optional steps. They areonly displayed if the run is defined as a ‚posting run‘
Postings can be previewed and controlled in the results part of the cockpit.
An explanation of the posting logic follows...
Run Results I
A run consists of
Definition:A collection of parameters
Plants taking partBeginning and ending periodSettings
A name and a long text
Steps to complete all of the actual costing processes
ResultsReporting and analysisPostings: FI and cost centersUse in CO-PA
Results: Reporting
AVR runs are stored separately from periodic data. The following reporting andanalysis tools can be used for AVR in the same way as for Periodic ML:
Price analysis on material level (CKM3)Valuated quantity structureData extraction to BWValue flow monitorCKMLAVRPERD allows you to compare data from multiple periods with the AVR data atprocurement alternative level
Run Results II
A run consists of
Definition:A collection of parameters
Plants taking partBeginning and ending periodSettings
A name and a long text
Steps to complete all of the actual costing processes
ResultsReporting and analysisPostings: FI and cost centersUse in CO-PA
Results: Postings
Postings from AVR may include:Delta stock account adjustmentsCost center credits from actual activity pricesCost of single level consumption
The ‚posting run‘ flag determines if the results can be used forposting or not. This prevents double postings being made to sameaccount from different runs.
The flag can only be set once per ending period, plant, and accountmodification.
With Account Modification,alternative valuations can be postedin parallel to different sets ofaccounts
Posting from AVR is optional, not mandatory!SAP recommends posting from periodicactual costing!
with Accounting Principle, alternativevaluations can be posted in parallelto a Special Ledger
Delta Stock Account Postings
AVR results are compared, by material, with the current material valuation.
The difference is posted to a delta stock account with posting key BSD.
The offsetting posting uses key UMD.
To keep the operative valuation separate, the BSD account must not equal the BSXaccount.
The posting is automatically reversed in next period in order to allow Year-to-Date-Cumulations.
Per material in AVR:
BSD = ( stock value AVR) –(stock value material master)
UMD = - BSD
Example:
AVR periods 1 – 12, ending stock: 100 pieces,Price $ 1.20
Periodic valuation period 12: 100 pieces, V-Price1.00 (from periodic revaluation)
Posting:BSD 20UMD 20-
Cost Center Credits from Actual ActivityPrices
There are three alternatives for crediting cost centers:No crediting of cost centerCrediting triggered by periodic material ledger with periodic actual activity prices, not byAVRCrediting triggered by AVR with cumulative actual activity prices
Makes sense if, for example, cost centers would not be cleared in some periods due toseasonal fluctuations.
Offsetting posting (crediting cost center activity type inCO)
GBB / AUI
Lower level price differencesPRV
Posting date: Last day of ending period of AVR
In case of previous run, for example when using YTD:Previous cost center posting is reversed
Scenarios with Cost Center Postings
CustomizingActivityupdate
Rate in AVRDef. Periodic ML AVR
2 BlankUses periodicactual ratesCrediting CC
Actual valuation of periods will be recognizedin cumulationNo credit of CC
2 Actual RateUses periodicactual ratesCrediting CC
Determination of cumulated actual activityprices availablePickup of cumulated actual rate differencesNo credit of CC
1 Actual Rate +Flag 'credit CC'
Activity differencesnot used
Determination of cumulated actual activityprices is available
Pickup of cumulated actual rate differencesCC Credited
Revaluation of Consumption
Single-level consumption can be revaluated periodically, and can also be adjustedto the AVR price
Consumption value from AVR
Consumtion quantities are cumulated.Quantity x AVR price = consumption value
Periodic consumption value
Posting documents from revaluation ofconsumption are added together for therange of AVR Periods
AVR delta postings:Consumption value from AVR – periodic consumption value – posted inprevious periods by AVR
Posting is made in same way as posting in periodic valuation: posting madeto original consumption account (and CO object)
Example Posting
Closing entry AVR January to September 2000
Posting date 30.09.2000Credit cost center NSC1 100- GBB AUIPrice Diff. Lower levels 100 PRVFinished Goods Inv. Delta 50 BSDRevaluation Delta 50- UMDCost of sales 50 COGSPrice Diff. ML 50- PRY
Posting Date 01.10.2000Revaluation Delta 50 UMDFinished Goods Inv. Delta 50- BSD
Closing entry cumulation January to December 2000
Posting date 31.12.2000Credit cost center NSC1 100 GBB AUI <-reversal of former closingPrice Diff. Lower levels 100- PRV <-reversal of former closingCredit cost center NSC1 180- GBB AUIPrice Diff. Lower levels 180 PRVFinished Goods Inv. Delta 90 BSDRevaluation Delta 90- UMDCost of sales 40 COGS <-difference to former closing: 90 - 50*Price Diff. ML 40- PRY
Posting Date 01.01.2001Revaluation Delta 90 UMDFinished Goods Inv. Delta 90- BSD
In January to September, 1000 pieces of a semifinished good“FG1” were produced. 1000 hrs of activity “ac1” in cost center“NSC1” were consumed. The preliminary (frozen) price of ac1was 1 EUR/h. For periods 1 - 9 in 2000, the total costs forNSC1 were 1100 EUR and the total output was 1000 hrs of ac1.Therefore the actual activity price of ac1 is 1.1 EUR/hr
At 09.30.2000 the ending stock is 500, another 500 pieces weresold in January to September.
No other price differences occurred for FG1.
In the last quarter of the year,another 1000 pc wereproduced, again consuming1000 hrs of AC1. Thecumulated yearly costs forcost center NSC1 were 2180EUR, and the total output was2000 hrs. The price for AC1 is1.09 EUR/hr. The endingstock is now 1000 Pc.
Run Results III
A run consists of
Definition:A collection of parameters
Plants taking partBeginning and ending periodSettings
A name and a long text
Steps to complete all of the actual costing processes
ResultsReporting and analysisPostings: FI and cost centersUse in CO-PA
AVR values in Profitability AnalysisCustomizable strategy to select AVRCost of sales split into cost componentsPlan/Actual/AVR variance analysis
Using AVR prices in CO-PA
Plan Actual (AVR) Var. % Var. Abs.Revenues: 100,000 US$
Sales Quantity: 1,000 pc
50,000 45,000 5,000 10 %Raw Materials4,000 5,000 -1,000 - 25 %Labor variable4,000 4,500 - 500 - 13 %Machine variable
10,000 7,000 3,000 30%Logistic Processes5,000 5,500 - 500 - 10 %Material Overheads
6,00027,000 33,000 22 %Contribution Margin I10,000 10,000 0 0 %Labor fixed7,000 7,000 0 0 %Machine fixed
10,000 16,000 6,000 60 %Contribution Margin II
Setup CO-PA Revaluation
IMG:- Controlling- Product Cost Controlling- Actual Costing/Material Ledger- Actual Costing- Set-up transfer of cost component
split to CO-PA
IMG:- Controlling- Profitability Analysis- Master Data- Valuation- Set up valuation using material
cost estimate- Define access to Actual
Costing/Material Ledger
Summary
Features
AVR works as an add-on to Periodic Actual Costing
AVR can determine actual costs for a range of periods (cumulation)
You can choose between different valuations of stocks and activities
Results
AVR provides material prices, cost component splits, and actualquantity structures
Reporting in BW, CO-PC, and CO-PA
Valuation for stocks, consumption, and activity consumption can beposted to G/L accounts and cost centers
© SAP AG 2009. All rights reserved. / Page 53
Part A – Inventory Accounting with Material LedgerPart B – Alternative Valuation RunPart C – Distribution of Usage VariancesPart D – Revaluation of Consumption at Actual CostsPart E – Revaluation of Cost of Goods Sold at Actual Costs
Agenda
The Idea
Adjust confirmations to orders to „almost actual“ quantities without the inconvenienceof manually entering actual confirmation quantities individually by order.
1. Confirmation is completed using target quantities.
2. Stock is counted regularly.
3. Inventory differences are distributed to the orders relating to previously postedconsumption quantities.
Entering Consumption Quantities
Efficiency
Backflushing is used. Nomanual interaction. Quantitiesaccording to planned datafrom Bill of Material (BoM)and routing.
Accuracy
Manual confirmations by order.Users enter quantities as takenfrom stock.
Compromise:
1. Backflushing.2. Counting – daily, weekly, monthly.3. Difference distribution.
Period 2Period 1
Goods Issues
Prod.Order 1
Yoghurt
Prod.Order 2
Yoghurt
Prod.Order 3
Milkshake
1000 KG 400 KG
50 KG 50 KG 200 KG 200 KG100 KG
500 KG
Physical Inventory: Strawberries, storage location 1 1000 KG
1. ‘Traditional’ goods issues to the order during order production
Period 2Period 1
DUV for Material Consumption
1000 KG 400 KG
50 KG 50 KG 200 KG 200 KG100 KG
500 KG
Physical Inventory: Strawberries, storage location 1 1000 KG
Yoghurt Yoghurt MilkshakeProd.Order 1
Prod.Order 2
Prod.Order 3
20 KG40 KG 40 KG
2. Distribution of usage variances (DUV) after physical inventory
Usage variances postedas additional goods issueswith special movement type
Period 2Period 1
Confirmation of Activities
Yoghurt Yoghurt Milkshake
2 Mvmts 3 Mvmts2 m3 4 m3
Prod.Order 1
Prod.Order 2
Prod.Order 3
1. ‘Traditional’ activity allocations and goods issues,for example, using backflushing
DUV for Activity Allocation
Period 2Period 1
Actual activity quantities (for example, from time sheets or machine counters)
Prod.Order 1
YoghurtProd.Order 2
YoghurtProd.Order 3
Milkshake
2 Mvmts3 Mvmts2 m3 4 m3
2. DUV after entering actual activities (and physical inventory)
Entering Differences
Materials:
Uses existing physical inventory functions. Gets differences from posted physicalinventory documents.
Create PIDocument
RecordCounting
Post PIDifference
Distributeto Orders
Activities:
New Transaction (CKMDUVREC) for entering actual output of anactivity, determined from timesheet, machine hour counter, and soon.
Enter ActualQuantities
DistributeDifferences
Mark checkbox‚Relevant forDUV‘
Possible Receivers for Differences
Materials:Production OrdersProduct Cost CollectorProduced MaterialConsumed materialNone (leave in physical inventorydifference account)
Activities / Processes:Production OrdersProduct Cost CollectorProduced MaterialNone (leave on cost center)
FI, ML, Price Change,CO
CostsMaterial
MM, FI, ML, COQuantities & CostsOrder & Cost Collector
Type of postingWhat is distributedReceiverSender
COQuantities & CostsOrder & Cost Collector
Mat.
Act.
Mat./Act
Searching DUV Receiver Objects
Materials:
Receiving orders are searched by material documents (MSEG) by:Posting date in the period beween current and last PI counting.Relevant movement type (set up in Customizing).Material, plant, storage location, batch, valuation type, stock type the same as thematerial to be distributed.BADI
Activities:
CO Documents of confirmations are searched by:Posting date in the period beween current and last PI counting.Cost center and activity type, the same as the activity to be distributed.
FI Postings for DUV Materials
Post physical inventory differenceMM
BSXStock
GBB/INVPI Differences
x x
GBBOrder
GBB/INVPI Differences
x x
PRDPrice Difference
GBB/INVPI Differences
x x
BSXStock
GBB/INVPI Differences
x x
Post distribution to order
Post distribution to material(standard price)
Post distribution to material(moving average price)
1
2a
2b
2c
1
2
3
Activation in Customizing
Activation is completed per plant/storage location. Checkbox only appears whenactivation takes place during creation of PI documents.PI documents (created in background by Warehouse Management and so on) can beused for DUV, if DUV is activated in the plant concerned and the distribution indicator1 is binding.
Movement Types
Receiver SearchMovement types recognized during receiver search:
Set up in Table TDUVN156 using transaction SM31, for example: 261, 262
DistributionMovement types used for getting quantities back from PI account to stock
Set up by copying movement types in MM Customizing. See DUV online documentationMovement types for posting PI differences to order
By default: 261, 262. Can be set to new ones for example: Z61, Z62
Customizing Follow-on Mvmt. Types – OMJJ
Z11 DUV Z62Z12 DUV Z61
PI-Posting
Reversal of PI-Posting
Posting to Order
Viewing/Editing Distribution Receivers
save edited distribution
post movements / debits
Change Type of Receiver
Proposed Distribution
CKMDUVACT - Distributing ActivityDifferences
Proposed Distribution
Save Edited Distribution
Post Movements/Debits
DUV and Actual Costing
DUV can be used with or without Actual Costing
DUV was developed by the actual costing development team ina joint project with a customer from process industry
DUV is assigned to the component CO-PC-ACT-DUV
Integration with Actual Costing
Original PI posting
DUV: Getting stock back
DUV: Difference to order
Price Determination Schema
No impact on procurementquantity and value-
Adjusted consumptionquantity-
Actual Quantity Structure.
See Notes510692, 510273
Setting up ML Update Structure
By default, positive PI quantities (701) aretreated as „other Receipts“, and negative PIquantities are collected in (702) consumption.
Recommendation: Assign all PI movement typesto a movement type group and assign this toprocess category VP
See Note 510692 for the procedure
701
701702Z11Z12711 etc
702
Beginning InventoryReceiptsOther Receipts/ConsumptionCumulative Inventory
Ending InventoryConsumption
Beginning InventoryReceiptsOther Receipts/ConsumptionCumulative Inventory
Ending InventoryConsumption
BADI for Receiver Determination
BADI CKMLDUVN_CHOOSE_RECV
The automatic search for receivers of material differences (orders that consumed thematerial) can be influenced by:
Method SET_PARAMETERS_RELEVANT: Implementation can decide which of the materialparameters should be used for receiver determination:
Storage locationType of stockBatchValuation type
Method SUBSTITUTE_PARAMETERS: Implementation can substitute parameters for thereceiver search:
Material numberPlantbatchValuation typeStorage locationType of stock
Example: A difference for material 4711 in recorded atstorage location 0001 (warehouse) shall be distributed toorders which consumed the material from storage location0002 (production line)
Example: A difference for material 4711 with batch xy shallbe distributed to all orders which used material 4711 fromthe same storage location and stock type, without respectto the batch number
Movement Types (Special Topics)
In order to find possible receiver objects, DUV relevant goods issue mvmnt types(for example: 261) must be maintained in table TDUVN156 (Transaction SM31).
During a DUV posting based on a physical inventory, the following goodsmovements occur:The inventory goods movements (movement types 701/702) are reversed. There are noreversal goods movements for these movements in the standard. Therefore new reversalmovement types for the reversal of positive and negative inventory postings must be createdas copies of 711 and 712 (Z11 and Z12). You must not set the flag ‚inventory posting‘ forthese movement types.After the inventory goods movements have been reversed,material usage variances areposted to the receiving orders. In order not to take these goods movements into accountduring a second distribution, special goods movements types should be created for theseDUV goods issues , e.g. Z61 and Z62 (as copies of 261 and 262).The reference movement types for the copied movement types should be set to 999 so thatWarehouse Management ignores them.Z61 and Z62 can then be defined as follow-up movements for Z11 and Z12 respectively withfunction code ‚DUV‘.The corresponding order should be entered as the follow on movement type for the functioncode ‚DUV‘ for the inventory reversal movement types Z11 and Z12.
Release
DUV is included as part of the SAP R/3 EnterpriseFinancials Extension 1.10 and will, therefore, bereleased to all customers
A downgrade to 4.6c is technically possible but would results in chargeable extrawork
Distribution of Usage Variances (DUV) - Tables
DUV for Materials:CKMLDUVN - Information from inventory documents.CKMLDUVNCO- Line items from distribution.TDUV156 – DUV relevant movement types.
DUV for Activity TypesCKMLDUVACT- Total activity quantities to be distributedper DUV interval.CKMLDUVACTCO - Line items from distribution.
© SAP AG 2009. All rights reserved. / Page 89
Part A – Inventory Accounting with Material LedgerPart B – Alternative Valuation RunPart C – Distribution of Usage VariancesPart D – Revaluation of Consumption at Actual CostsPart E – Revaluation of Cost of Goods Sold at Actual Costs
Agenda
External Procurement External Procurement
Production
Production
Multilevel Actual Costing
MultiMulti--Level Actual Costing allows:Level Actual Costing allows:Inventory valuation usingInventory valuation usingactual periodic material priceactual periodic material price
RollRoll--upup of price differencesof price differencesfrom raw materials tofrom raw materials tofinished materialsfinished materials
The gap to close
In 4.6, price differences are distributed to multilevel consumption and the endinginventory:
Production
Transfer plant to plant
Transfer material to material
Sales
Cost center, internal order, project, PA segment etc.
Scrap, physical Inventory, quality inspection
However, no revaluation of single level consumption takes place:
Ending inventory
Revaluation of Cost of Goods Sold (COGS)
1000 kg
Ending Inventory
500kg
Cafeteria
100kg
Sales
400kg
Revaluation ofConsumption
ML Price Determination:Roll Up of Variances
Revaluation Types
CF Collection with reference to the consumption accountnumber. Revaluation is posted to same account (original
account).
CC Collection with reference to the consumption accountnumber plus CO-Object (cost center number etc.)Revaluation is posted to original account and CO-Object.
COC Collection on process category. Revaluation isposted to COC collective account.
Tracing Movements Relevant to Revaluation
Material: chocolate
Beginning Inventory 0 Kg
Receipts 1000 Kg
Production 1000 Kg
Cumulative Inventory 1000 Kg
Consumption 500 Kg
Sales 400 Kg
Account 890000 250 Kg
Account 895000 150 Kg
Cost Center 100 Kg
Cafeteria 100 Kg
Ending inventory 500 Kg
Consumption alternatives relevant for revaluation:
FI Account is key for consumption alternative
To revaluate both the CO-Object and the FI-account, you need to assign the movementtype group CC (instead of CF).
Movement type Movement type group
251 - Sales CF (Revaluation FI)
201 - Cost Center (Cafeteria) CC (Revaluation FI and CO)
331 - Quality Inspection
Setup for Revaluation in CO
Tracing Movements with CO-Objects
Material: chocolate
Beginning Inventory 0 Kg
Receipts 1000 Kg
Production 1000 Kg
Cumulative Inventory 1000 Kg
Consumption 500 Kg
Sales 400 Kg
Account 890000 250 Kg
Account 895000 150 Kg
Cost Center 100 Kg
Acc.850000, CC. Cafeteria 100 Kg
Ending inventory 500 Kg
The CO Object - and the FI Account - are keys for theconsumption alternative, relevant for revaluation in CO
Revaluating Other Consumption (COC)
Sales Cost Center: Cafeteria Quality Inspection
COC AccountCost of Other Consumption
If the movement type is not assigned to CCor CF, differences are posted to COCaccount
Material: chocolate
Beginning Inventory 0 Kg 0 USD 0 USD
Receipts 1000 Kg 10000 USD 1000 USD 11 USD
Production 1000 Kg 10000 USD 1000 USD 11 USD
Cumulative Inventory 1000 Kg 10000 USD 1000 USD 11 USD
Consumption 500 Kg 5000 USD 500 USD 11 USD
Sales 400 Kg 4000 USD 400 USD 11 USD
Account 890000 200 Kg 2000 USD 200 USD 11 USD
Account 895000 150 Kg 1500 USD 150 USD 11 USD
Cost Center 100 Kg 1000 USD 100 USD 11 USD
Acc.850000 CC. Cafet. 100 Kg 1000 USD 100 USD 11 USD
Other Consumptions 50 Kg 500 USD 50 USD 11 USD
Ending inventory 500 Kg 5000 USD 500 USD 11 USD
Example
Reval. FI + COCOC Posting
Reval. FI
Postings in FI
Preliminary Valuation: 10 USD / kg
Variances calculated by price determination: 1 USD / kg
Material stock Price difference Consumpt. SalesProduction1000 kg
Sales400 kg
Pricedetermination
RevaluationInventory
RevaluationCOGS
10000USD
1000USD
500USD
500USD
4000USD
4000USD
400USD
400USD
Consumption to Cost Center:Iteration Problem
1) Cost Center Closing
Cost Center Cost Center
Cost Center
2) Order Settlement
3) Multi-LevelActual Costing
Procedure
Set up CustomizingCreate movement type groupsAssign movement types to groupsMaintain COC acount determination
Record Movements during the period
Perform step ‚revaluation of consumption‘ in costing cockpit after single- and multi-level settlement
Post closing entries with revaluation
© SAP AG 2009. All rights reserved. / Page 112
Part A – Inventory Accounting with Material LedgerPart B – Alternative Valuation RunPart C – Distribution of Usage VariancesPart D – Revaluation of Consumption at Actual CostsPart E – Revaluation of Cost of Goods Sold at Actual Costs
Agenda
© SAP AG 2009. All rights reserved. / Page 114
1. Introduction2. Modification of the Material Ledger Update of Goods Movements for
Revaluation of COGS3. How the old program worked4. How to implement and use the new program
Agenda
Example: Consumption of a Finished Product
1000 kg
Ending Inventory
500kg
Sales
400kg
Cafeteria
100kg
Price Determination
1000 kg
Ending Inventory
500kg
Sales
400kg
Cafeteria
100kg
ML Price Determination:Roll Up of Variances
Revaluation of Ending Inventory
1000 kg
Ending Inventory
500kg
Sales
400kg
Cafeteria
100kg
ML Period Closing:Revaluation of EndingInventory
Revaluation of Cost of Goods Sold (COGS)
1000 kg
Ending Inventory
500kg
Cafeteria
100kg
Revaluation of
COGS
Sales
400kg
Postings in FI
Preliminary Valuation: 10 USD / kg
Variances calculated by price determination: 1 USD / kg
Material stock Price difference Consumpt. SalesProduction1000 kg
Sales400 kg
Pricedetermination
RevaluationInventory
RevaluationCOGS
10000USD
1000USD
500USD
500USD
4000USD
4000USD
400USD
400USD
© SAP AG 2009. All rights reserved. / Page 120
1. Introduction2. Modification of the Material Ledger Update of Goods Movements for
Revaluation of COGS (COGS SAPRCKML_COGSZSAPRCKML_COGS)
3. How the old program worked4. How to implement and use the new program
Agenda
Movement type Movement type group
251 - Sales CF (Revaluation FI)201 - Cost Center (Cafeteria)
331 - Quality Inspection
It is specified in Customizing which movement types are relevant torevaluation(by assigning special movement type groupsCF and CC).
Types of Consumption Relevant to Revaluation
Tracing of Movements Relevant to Revaluation
Material: chocolate
Beginning Inventory 0 Kg
Receipts 1000 Kg
Production 1000 Kg
Cumulative Inventory 1000 Kg
Consumption 500 Kg
Sales 400 Kg
Account 890000 250 Kg
Account 895000 150 Kg
Cost Center 100 Kg
Cafeteria 100 Kg
Ending inventory 500 Kg
Consumption Alternatives relevant to revaluation:
FI Account is a key of of the Consumption Alternative
To revaluate also the CO-Object (besides the FI-account) incustomizing you assign the movement type group CC (instead CF)
Movement type Movement type group
251 - Sales CF (Revaluation FI)
201 - Cost Center (Cafeteria) CC (Revaluation FI and CO)
331 - Quality Inspection
Revaluation in CO
Consumption to Cost Center:Iteration Problem
1) Cost Center Closing
Cost Center Cost Center
Cost Center
2) Order Settlement
3) Multi-LevelActual Costing
Tracing of Movements Relevant to Revaluation
Material: chocolate
Beginning Inventory 0 Kg
Receipts 1000 Kg
Production 1000 Kg
Cumulative Inventory 1000 Kg
Consumption 500 Kg
Sales 400 Kg
Account 890000 250 Kg
Account 895000 150 Kg
Cost Center 100 Kg
Acc.850000, CC. Cafeteria 100 Kg
Ending inventory 500 Kg
The CO Object - besides the FI Account - is a key of aConsumption Alternative relevant to Revaluation in CO
Example
Material: chocolate
Beginning Inventory 0 Kg 0 USD 0 USD
Receipts 1000 Kg 10000 USD 1000 USD 11 USD
Production 1000 Kg 10000 USD 1000 USD 11 USD
Cumulative Inventory 1000 Kg 10000 USD 1000 USD 11 USD
Consumption 500 Kg 5000 USD 500 USD 11 USD
Sales 400 Kg 4000 USD 400 USD 11 USD
Account 890000 250 Kg 2500 USD 250 USD 11 USD
Account 895000 150 Kg 1500 USD 150 USD 11 USD
Cost Center 100 Kg 1000 USD 100 USD 11 USD
Cafeteria 100 Kg 1000 USD 100 USD 11 USD
Ending inventory 500 Kg 5000 USD 500 USD 11 USD
Revaluation COGS Revaluation COC
© SAP AG 2009. All rights reserved. / Page 130
1. Introduction2. Modification of the Material Ledger Update of Goods Movements for
Revaluation of COGS3. How the old program worked (PRCKML_COGS SAPRCKML_COGS
ZSAPRCKML_COGS)4. How to implement and use the new program
Agenda
Problems of standard Material Ledger update
In standard Material Ledger update of goods movements consumption to sales doesnot always appear in the correct process type (Example: If goods are sold via acost center the consumption appears as ‚Consumption to Cost Center‘)
Reversal movements sometimes appear as procurement (above the cumulative line)and thus cannot be revaluated
Reading of material and accounting documents is needed to determine the COGSaccounts that have to be revaluated
The Old Program SAPRCKMN_COS
The old program …
makes no use of the material ledger update to identify the quantities consumes forsales (Reason: goods issues to sales are not always updated under the correctprocess type in ML)
identifies goods issues to sales by existence of a billing document in the Sales &Distribution Module
obtains all information needed to revaluate the movements (consumed quantities,accounts etc.) by reading the document flow of the Sales & Distribution Module
Problems of the Old Program
Use of Sales & Distribution Module required!
Performance: Reading of the document takes very long time in systems where
Use of Sales & Distribution Module required!
High Complexity of Processes in SD. Reading of the document flow can bevery complicated. This difficulty has caused many errors in the oldprogram.
Performance: Reading of the document takes very long time in systems wheremuch transaction data exists!
Time dependency: Sales movements are only recognized if the billing hasalready been posted and if it has been posted in the same period!
The old program had poor performance andoften determined wrong consumptionquantities for the sales movement
Posting Logic
Material BCOGS Account: 850000Revaluation Amount: 300,-
Material BCOGS Account: 850000Revaluation Amount: 300,-Business Area: 6100Profit Center: PC 2
Material ACOGS Account: 850000Revaluation Amount: 500,-
COGS Account: 850000Revaluation Amount: 800,-
AccountingInterface
Material ACOGS Account: 850000Revaluation Amount: 500,-Business Area: 6000Profit Center: PC 1
Old Program:
Cumulated Posting perAccount.
New Program:
Separate Posting foreach Material.Material specific data isprovided to Acc. Interface
Material specific data
© SAP AG 2009. All rights reserved. / Page 137
1. Introduction2. Modification of the Material Ledger Update of Goods Movements for
Revaluation of COGS3. How the old program worked4. How to implement and use the new program (ZSAPRCKML_COGS)
Agenda
Implementation of the New Program
Step 1: Modification of the Material Ledger Update.For this step follow the instructions of OSS-NOTE 305056.It has to be done BEFORE the start of the period, for which the new program shall be usedThis step includes the settings in customizing for all movement types that shall be revaluatedat period‘s end
Step 2: Installation of the new reportFor this step follow the instructions of OSS-NOTE 320152.In customizing you have to assign accounts for transaction key COC, if you want to revaluateCost of ‚Other Consumption
Settings in Customizing
Movement type Movement type group
601 - delivery CF
602 - GI to delivery (Reversal) CF
201 - Cost Center CC
202 - Cost Center (Reversal) CC
261 - Production Order
301 - Stock Transfer
Never forget toassign the reversalmovement !!
Never assign multi-levelmovements!!
Test each movement type, you assigned to CF or CC!!
General Understanding:Single- and Multi-Level Consumption
MaterialsMaterialsCost Center
CustomersMulti-Level Consumption
Single-Level Consumption
The new Program: Advantages/Disadvantages
Higher performance, because allrelevant data is collected duringthe period. No reading ofdocuments needed.
S & D Module is not required
Higher reliability because reading ofthe document flow is avoided
Revaluation of other single levelconsumption types possible
Revaluation of original CO-Objectspossible
All reversal movements can berecognized correctly
Material Ledger update of goodsmovements needs to be modifiedbefore period starts. Otherwiseprogram can not be used atperiod‘s end.
Advantages Disadvantges
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