Complete Act August 00
description
Transcript of Complete Act August 00
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 1
AActualctual CCostingosting
WWithith
MMaterial aterial LLedgeredger
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 2
IInventory nventory AAccounting ccounting WWithithMMaterial aterial LLedgeredger
Content
Why Why YYOOUU want Multi-Level Actual Costing! want Multi-Level Actual Costing!
Environment of Material LedgerEnvironment of Material Ledger
Traditional Valuation StrategiesTraditional Valuation Strategies
Actual Costing in Three StepsActual Costing in Three Steps
Future Prices; Customizing; GoodiesFuture Prices; Customizing; Goodies
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 3
0200400600800
10001200
Earnings
Actual Costing for CEO: Corporation´s Earnings
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 4
Actual Costing for PM: Product Profitability
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 Materials
4,0004,000 5,0005,000 -1,000-1,000 - 25 %- 25 %Labor variableLabor variable
4,0004,000 4,5004,500 - 500- 500 - 13 %- 13 %Machine variableMachine variable
10,00010,000 7,0007,000 3,0003,000 30%30%Logistic ProcessesLogistic Processes
5,0005,000 5,5005,500 - 500- 500 - 10 %- 10 %Material OverheadsMaterial Overheads
6,0006,00027,00027,000 33,00033,000 22 %22 %Contribution Margin IContribution Margin I
10,00010,000 10,00010,000 00 0 %0 %Labor fixLabor fix
7,0007,000 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
Release 4.6c!
Release 4.6c!
Plan/Actual
Sales
Costs Budget
Forcast
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 5
Actual values in Profitability AnalysisActual values in Profitability Analysis Contribution Margin AccountingContribution Margin Accounting Cost of sales Cost of sales split into split into cost componentscost components Plan/ActualPlan/Actual Variance analysis Variance analysis
Contribution Margins with Actual Values
PlanPlan ActualActual Var. %Var. % Var. Abs.Var. Abs.
RevenuesRevenues:: 100,000 US$100,000 US$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 -1,000-1,000 - 25 %- 25 %Labor variableLabor variable4,0004,000 4,5004,500 - 500- 500 - 13 %- 13 %Machine variableMachine variable
10,00010,000 7,0007,000 3,0003,000 30%30%Logistic ProcessesLogistic Processes5,0005,000 5,5005,500 - 500- 500 - 10 %- 10 %Material OverheadsMaterial Overheads
6,0006,00027,00027,000 33,00033,000 22 %22 %Contribution Margin IContribution Margin I
10,00010,000 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
Release 4.6c!
Release 4.6c!
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 6
Actual Costing for InvAcc: Prices and Values
Procurement
BalanceSheet Valuation
Values&
Prices
InventoryCounting
Planning
Stock
Material Plant Std.PriceAct. PriceVar.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 xmsFrankfurt 750 805 55 7,5 %Digital Camera xmsLondon 950 1020 70 7,4 %PC Pentium 200 Frankfurt 800 855 55 7 %
Total ... ... ... ... ...... ... ... ... ... ...
Category Quantity PrelValuePriceDif Price
Trading Inc200 2,000 1,200 16,00Best Price Ltd100 1,000 300 13,00
Prod. Version1500 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 Inventory1,000 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
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 7
Price Analysis for selected MaterialsPrice Analysis for selected Materials Huge number of monetary and quantity key-figures Multiple sorting and summerization functions Easy-to-customize to fit personal needs Direct drill-down tools to detailed views and documentsEasy error finding
Material Price Analysis
Material Material PlantPlant Std.PriceStd.Price Act. PriceAct. Price Var.absVar.abs Var. %Var. %
PC 600 PentiumPC 600 Pentium LondonLondon 3,5003,500 3,9203,920 420420 12 %12 %PC 500 PentiumPC 500 Pentium LondonLondon 2,5002,500 2,9002,900 400400 16 %16 %
PC 330 PentiumPC 330 Pentium FrankfurtFrankfurt 1,5001,500 1,6351,635 135135 9 %9 %Monitor 17‘Monitor 17‘ LondonLondon 400400 432432 3232 8 %8 %
Digital Camera xmsDigital Camera xms FrankfurtFrankfurt 750750 805805 5555 7,5 %7,5 %Digital Camera xmsDigital Camera xms LondonLondon 950950 10201020 7070 7,4 %7,4 %PC Pentium 200PC Pentium 200 FrankfurtFrankfurt 800800 855855 5555 7 %7 %
TotalTotal ...... ...... ...... ...... ............ ...... ...... ...... ...... ......
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 8
Material Price Analysis (2)
Price analysis for single MaterialsPrice analysis for single Materials Price history Procurement controlling Plausibility checks, and more
CategoryCategory QuantityQuantity PrelValuePrelValue PriceDifPriceDif PricePrice
Trading IncTrading Inc 200200 2,0002,000 1,2001,200 16,0016,00Best Price LtdBest Price Ltd 100100 1,0001,000 300300 13,0013,00
Prod. Version1Prod. Version1 500500 5,0005,000 500500 11,0011,00
ReceiptsReceipts 900900 9,0009,000 2,3402,340 12,6012,60Purchase OrderPurchase Order 300300 3,0003,000 1,5001,500 15,0015,00
ProductionProduction 500500 5,0005,000 500500 11,0011,00
Beginning InventoryBeginning Inventory 100100 1,0001,000 160160 11,6011,60
Cumulative InventoryCumulative Inventory 1,0001,000 10,00010,000 2,5002,500 12,5012,50ConsumptionConsumption 600600 6,0006,000 1,5001,500 12,5012,50Ending InventoryEnding Inventory 400400 4,0004,000 1,0001,000 12,5012,50
...... 100100 1,0001,000 340340 13,4013,40
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 9
IInventory nventory AAccounting ccounting WWithithMMaterial aterial LLedgeredger
Content
Why Why YYOOUU want Multi-Level Actual Costing! want Multi-Level Actual Costing!
Environment of Material LedgerEnvironment of Material Ledger
Traditional Valuation StrategiesTraditional Valuation Strategies
Actual Costing in Three StepsActual Costing in Three Steps
Future Prices; Customizing; GoodiesFuture Prices; Customizing; Goodies
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 10
Product Cost Controlling: Components
BOM RoutingRouting
Material pricesActivity pricesProcess pricesOverhead
Product Cost Planning
Value structure
Quantity Structure:PP Master Data
Standard price
Material Internal OH Process
•Planned costs•Actual costs
Work in processScrap variancesVariancesSettlement
Order
Material $Internal $OH $Process $Total ...
Final costingPeriod-end closing
Preliminary Costing,Simultaneous Costing
Cost Object Controlling
Price diff.Standard price
Material movements
Material settlement:actual price
Value structure
Actual Costing/ Material Ledger
Quantity Structure:Material Movements
Material Ledger
ProcessProcess
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 11
Actual CostingActual CostingMulti-levelMulti-level
Periodic Material PricesPeriodic Material Prices
Parallel CurrenciesParallel CurrenciesValuation with HistoricValuation with Historic
Exchange RatesExchange Rates
Parallel ValuationParallel ValuationTransfer pricesTransfer prices
GroupGroup LegalLegal Profit CenterProfit Center
TransparencyTransparencyof Value Chainof Value Chain
Actual CostingActual CostingMulti-levelMulti-level
Periodic Material PricesPeriodic Material Prices
MaterialMaterialLedgerLedger
Inventory ValuationInventory Valuation
Environment of Material Ledger
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 12
External ProcurementExternal Procurement External ProcurementExternal Procurement
ProductionProduction
ProductionProduction
Multi-Level Actual Costing
Multi-Level Actual Costing allows Multi-Level Actual Costing allows Inventory valuation withInventory valuation with
actual periodic material priceactual periodic material price
Roll-upRoll-up of price differences of price differences
from raw materials to from raw materials to
finished materials finished materials
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 13
Integration ofIntegration ofMulti-LevelMulti-Level
Actual CostingActual Costing
Integration of Actual Costing
Profitability Profitability AnalysisAnalysis
Contribution Margins
Release 4.6c!
Release 4.6c!
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 14
Actual values in Profitability AnalysisActual values in Profitability Analysis Contribution Margin AccountingContribution Margin Accounting Cost of sales Cost of sales split into split into cost componentscost components Plan/ActualPlan/Actual Variance analysis Variance analysis
Actual Costing and Profitability Analysis
PlanPlan ActualActual Var. %Var. % Var. Abs.Var. Abs.
RevenuesRevenues:: 100,000 US$100,000 US$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 -1,000-1,000 - 25 %- 25 %Labor variableLabor variable4,0004,000 4,5004,500 - 500- 500 - 13 %- 13 %Machine variableMachine variable
10,00010,000 7,0007,000 3,0003,000 30%30%Logistic ProcessesLogistic Processes5,0005,000 5,5005,500 - 500- 500 - 10 %- 10 %Material OverheadsMaterial Overheads
6,0006,00027,00027,000 33,00033,000 22 %22 %Contribution Margin IContribution Margin I
10,00010,000 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
Release 4.6c!
Release 4.6c!
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 15
Integration ofIntegration ofMulti-LevelMulti-Level
Actual CostingActual Costing
Integration of Actual Costing
Product Cost Product Cost PlanningPlanning
Standard Prices&
Cost ComponentSplit
Profitability Profitability AnalysisAnalysis
Contribution Margins
Release 4.6c!
Release 4.6c!
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 16
Actual Costing and Product Cost Planning
Variance AnalysisVariance AnalysisVariance AnalysisVariance Analysis
Actual Costing with Actual Costing with Cost ComponentsCost Components
Actual Costing with Actual Costing with Cost 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
Multi-LevelMulti-LevelActual CostingActual Costing
Price Determination
Actual Quantity StructureActual Quantity Structure
Same cost componentSame cost component structure as in planning structure as in planning
No Cost EstimatesNo Cost Estimates necessary for Actual necessary for Actual Costing Costing
Optional: Primary costOptional: Primary cost component split component split
Same cost componentSame cost component structure as in planning structure as in planning
No Cost EstimatesNo Cost Estimates necessary for Actual necessary for Actual Costing Costing
Optional: Primary costOptional: Primary cost component split component split
Release 4.6c!
Release 4.6c!
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 17
Integration ofIntegration ofMulti-LevelMulti-Level
Actual CostingActual Costing
Integration of Actual Costing
Product Cost Product Cost PlanningPlanning
Standard Prices&
Cost ComponentSplit
Profitability Profitability AnalysisAnalysis
Contribution Margins
Cost Center Cost Center AccountingAccounting
Actual Prices of Activities and
Business Processes
Release 4.6c!
Release 4.6c!
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 18
Actual Costing and Cost Center Accounting /ABC
ProductionProduction MaterialMaterial
Cost CenterActivities
Cost CenterActivities
Business ProcessesBusiness Processes
Actual ./. PlanActual ./. PlanActual ./. PlanActual ./. Plan
Actual ./. PlanActual ./. PlanActual ./. PlanActual ./. Plan
PlanPlanPlanPlan StandardPriceStandardPriceStandardPriceStandardPrice
SettlementSettlementSettlementSettlement
Direct settlement to materials:Direct settlement to materials: Actual Actual activity pricesactivity prices
Actual costs of Actual costs of business processesbusiness processes
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 19
IInventory nventory AAccounting ccounting WWithithMMaterial aterial LLedgeredger
Content
Why Why YYOOUU want Multi-Level Actual Costing! want Multi-Level Actual Costing!
Environment of Material LedgerEnvironment of Material Ledger
Traditional Valuation StrategiesTraditional Valuation Strategies
Actual Costing in Three StepsActual Costing in Three Steps
Future Prices; Customizing; GoodiesFuture Prices; Customizing; Goodies
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 20
Material MasterMaterial Master Price ControlPrice Control
Valuation Strategies without Material Ledger
Standard Price(S-Price)
- Constant- Recommended for all material types
Moving average price(V-Price)
- Adjusted with every receipt- If at all, only to be used for raw materials and materials procured externally
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 21
Posting Example: Moving average price 1
StockStock GR/IR AccountGR/IR Account
VendorVendor
Procedure Stock Stock value V price
Begin. inventory: 100 PC at 2.00 100 200.- 2.00
Goods receipt: 100 PC at 3.00 200 500.- 2.50
Invoice receipt: 100 PC at 4.00 200 600.- 3.00
Goods issue: 150 PC at 3.00 50 150.- 3.00
Procedure Stock Stock value V price
Begin. inventory: 100 PC at 2.00 100 200.- 2.00
Goods receipt: 100 PC at 3.00 200 500.- 2.50
Invoice receipt: 100 PC at 4.00 200 600.- 3.00
Goods issue: 150 PC at 3.00 50 150.- 3.00
11
22
33
11 200,-
300,-
100,-
200,-
300,-
100,-
22300,-300,- 22
44
400,-400,-
300,-300,-
44
ConsumptionConsumption
450,-450,-
33
33
450,-450,-
44
If the invoice receipt is for 100 units, the stock
coverageis 200 units:
all differences stock
If the invoice receipt is for 100 units, the stock
coverageis 200 units:
all differences stock
33
Stock Coverage
ok
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 22
With a delayed invoice receiptOf 100 units:
a shortage of 50 units price differences despite MAP
With a delayed invoice receiptOf 100 units:
a shortage of 50 units price differences despite MAP
Posting Example: Moving average price 2
StockStock
Price differencePrice difference
GR/IR accountGR/IR account
VendorVendor
Procedure Stock Stock Value V Price
Begin. inventory: 100 200.- 2.00
Goods receipt: 100 PC at 3.00 200 500.- 2.50
Goods issue: 150 PC at 2.50 50 125.- 2.50
Invoice receipt: 100 PC at 4.00 50 175.- 3.50
Procedure Stock Stock Value V Price
Begin. inventory: 100 200.- 2.00
Goods receipt: 100 PC at 3.00 200 500.- 2.50
Goods issue: 150 PC at 2.50 50 125.- 2.50
Invoice receipt: 100 PC at 4.00 50 175.- 3.50
11
22
33
11 200.-
300.-
50.-
200.-
300.-
50.-
22300.-300.- 22
50.- 50.-
44
44400.-400.-
300.-300.-
44
ConsumptionConsumption
375.-375.-33
33 375.-375.-
44
44
Stock Shortage
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 23
Posting Example: Moving average price 3
Procedure Stock Stock Value V Price
Begin. inventory: 100 200.- 2.00
Goods receipt: 100 PC at 2.20 200 420.- 2.10
Goods receipt: 100 PC at 2.40 300 660.- 2.20
Goods issue: 200 PC at 2.20 100 220.- 2.20
Invoice receipt: 100 PC at 3.00 100 300.- 3.00
Invoice receipt: 100 PC at 3.00 100 360.- 3.60
Procedure Stock Stock Value V Price
Begin. inventory: 100 200.- 2.00
Goods receipt: 100 PC at 2.20 200 420.- 2.10
Goods receipt: 100 PC at 2.40 300 660.- 2.20
Goods issue: 200 PC at 2.20 100 220.- 2.20
Invoice receipt: 100 PC at 3.00 100 300.- 3.00
Invoice receipt: 100 PC at 3.00 100 360.- 3.60
With multiple delayed invoice receipts: Danger of Incorrect Valuation!
With multiple delayed invoice receipts: Danger of Incorrect Valuation!
Eventhough all receipts between 2.- and 3.- were
valuated!
Eventhough all receipts between 2.- and 3.- were
valuated!
Δ 80.- in stockΔ 80.-
in stock
Δ 60.- in stockΔ 60.-
in stock
Stock Coverage
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 24
Characteristics of Price Control V
+ The stock value is adjusted each time goods are received
+ Real-time price fluctations are posted to stock
+ Price difference postings only take place in exceptional cases
- Price fluctuations cannot be adjusted to the finished products of higher levels (S price)
- Only recommended for raw materials or goods procured externally (real-time price for goods receipt known)
- False entries with severe consequences (compounded errors)
- Danger of incorrect valuations with delayed invoice receipt
Moving average price
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 25
Posting Example: Standard Price
StockStock
Price differencePrice difference
GR/IR accountGR/IR account
VendorVendor
Procedure Stock Stock Value Standard Price
Initial situation: 100 200.- 2.00
Goods receipt: 100 at 2.40 200 400.- 2.00
Invoice receipt: 100 at 2.20200 400.- 2.00
Procedure Stock Stock Value Standard Price
Initial situation: 100 200.- 2.00
Goods receipt: 100 at 2.40 200 400.- 2.00
Invoice receipt: 100 at 2.20200 400.- 2.00
11
22
33
11 200.-
200.-
200.-
200.-22240.-240.- 22
22 40.-40.-
33
333320.-20.-
220.-220.-
240.-240.-
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 26
Characteristics of Price Control S
+ All stock postings take place at the standard price
+ Prices remain constant throughout at least one period
+ Price fluctuations do not debit/credit the cost objects (e.g. orders)
consistant controlling with the standard price as a bench mark
+ Calculation of the standard prices with cost component splits
+ Recommended for all material types
- Price differences cannot be subsequently adjusted to the ending
inventories or the consumed products (sales, production
withdrawals)
Standard Price
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 27
Period-End Closing: Valuation Problems
Valuation PeriodValuation Period
Distribution of Price Differences?
Actual Prices?
Finished Products
Ending Inventory: Raw MaterialsRaw Materials II
Raw Materials I
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 28
Variances of Standard Cost Accounting
External procurement
Ergebnis FI
Order
Order
Cost center Activitytype
Activitytype
V price
S price
S price
Result (FI)Result (FI)Variance categoriesVariance categories Price difference accountPrice difference account==
Cost elementsCost elements
ProductionCost Centers
Result (CO-PA)
Stock accounts
Cost center Activity type
Activity type
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 29
IInventory nventory AAccounting ccounting WWithithMMaterial aterial LLedgeredger
Content
Why Why YYOOUU want Multi-Level Actual Costing! want Multi-Level Actual Costing!
Environment of Material LedgerEnvironment of Material Ledger
Traditional Valuation StrategiesTraditional Valuation Strategies
Actual Costing in Three StepsActual Costing in Three Steps
Future Prices; Customizing; GoodiesFuture Prices; Customizing; Goodies
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 30
Multi-Level Actual Costing (Overview)
Introduction of theIntroduction of theNew ConceptNew ConceptIntroduction of theIntroduction of theNew ConceptNew Concept
Preliminary Valuation andRecording of Differences
Price determination:Calculation ofPeriodic Unit Price
Period End Closing:Revaluation of materialswith Periodic Unit Price
Preliminary Valuation andRecording of Differences
Price determination:Calculation ofPeriodic Unit Price
Period End Closing:Revaluation of materialswith Periodic Unit Price
Three Steps in Actual CostingThree Steps in Actual Costing
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 31
Material Ledger(Valuation Area)Material Ledger(Valuation Area)
40 Hard currency USD
30 Group currency UNI
Cost Controlling(Controlling Area) Cost Controlling
(Controlling Area)
10 Local currency
30 Group currency UNI
Currency translation
Financial Accounting(Company Code)
Financial Accounting(Company Code)
10 Local currency
30 Group currency UNI
40 Hard currency USD
Caution:
Currency type 20 cannot
be used in the component
Financial Accounting
Material Ledger: Valuation Assignment
10 Local currency
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 32
ValuationCompany Code
CurrencyGroup
CurrencyHard
Currency
10
11
12
Legal
Group
Profit-Center
30
31
32
40
Multiple Currencies and Valuations
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 33
Actual Costing: Single Levels
ProductionProduction
ProductionProduction
LevelLevelLevelLevel
LevelLevelLevelLevel
LevelLevelLevelLevelExternal ProcurementExternal Procurement
External ProcurementExternal Procurement
LevelLevelLevelLevel
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 34
ProductionProduction
ProductionProduction
Actual Costing: Multi-Level
LevelLevelLevelLevel
LevelLevelLevelLevel
LevelLevelLevelLevel
Multi-Multi-LevelLevelMulti-Multi-LevelLevel
External ProcurementExternal Procurement
External ProcurementExternal Procurement
LevelLevelLevelLevel
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 35
External ProcurementExternal Procurement External ProcurementExternal Procurement
ProductionProduction
ProductionProduction
Multi-Level Actual Costing
Material Valuation with Material Valuation with
Multi-Level Actual CostingMulti-Level Actual Costing Preliminary ValuationPreliminary Valuation
During the Period During the Period
Revaluation at Period EndRevaluation at Period End
with Actual Price with Actual Price
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 36
Materials(Receipts)
Materials(Receipts)
Materials(Withdrawals)
Materials(Withdrawals)
Procurement AlternativeProcurement Alternative
Procurement ProcessProcurement Process
Quantity Structure: Elements:
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 37
MaterialsMaterials
ProcurementAlternative
ProcurementAlternative
ProcessProcess
Structured Elements
HierarchicalAssembly
MultipleMethods of
Procurement
Co-Production CyclicalProduction
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 38
Multi-Level Actual Costing (Overview)
Introduction of theNew ConceptIntroduction of theNew Concept
Preliminary Valuation andPreliminary Valuation andRecording of DifferencesRecording of Differences
Price determination:Calculation ofPeriodic Unit Price
Period End Closing:Revaluation of materialswith Periodic Unit Price
Preliminary Valuation andPreliminary Valuation andRecording of DifferencesRecording of Differences
Price determination:Calculation ofPeriodic Unit Price
Period End Closing:Revaluation of materialswith Periodic Unit Price
Three Steps in Actual CostingThree Steps in Actual Costing
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 39
Receipts
Cumulative inventory 1000 250 25.00
Ending inventory 1000 250 25.00
Other receipts/consum
Consumption
Preliminary Preliminary valuationvaluation
Preliminary Preliminary valuationvaluationQuantityQuantityQuantityQuantity
Beginning inventory 1000 250 25.00
PricePricedifferencedifference PricePrice
Differences between Standard Price and actual price
Real time valuation with Standard Price
Average actual price of category (line)
Material Price Analysis: Content
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 40
Material Price Analysis: Recorded Data
Receipts 1000 250 30 28.00
Cumulative inventory 2000 500 30 26.50
Ending inventory 700 175 25.00
Other receipts/consum 0 0 0
Consumption 1300 325 25.00
Preliminary Preliminary valuationvaluation
Preliminary Preliminary valuationvaluationQuantityQuantityQuantityQuantity
Beginning inventory 1000 250 25.00
PricePricedifferencedifference PricePrice
Beginning Inventory+
all Goods Receipts
Special Goods Receipts and Consumptions
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 41
Standard Cost Standard Cost EstimateEstimate
Standard Cost Standard Cost EstimateEstimateMaterial MasterMaterial MasterMaterial MasterMaterial Master Material Ledger Material Ledger
Document OverviewDocument OverviewMaterial Ledger Material Ledger
Document OverviewDocument Overview
Document itemsDocument itemsDocument itemsDocument items Source Source documentdocument
Source Source documentdocument
Document Document headerheader
Document Document headerheader
Accounting Accounting documentsdocumentsAccounting Accounting documentsdocuments
FIFIPPPP MMMM
MMMM CO-CO-PCPPCP
COCOCO-CO-PAPACOCO
Receipts 100 10.000 1.000 110
Cumulative inventory 170 17.000 3.400 120
Ending inventory 140 14.000 100
Other receipts/consumption 50 5.000 2.400 148
Consumption 30 3.000 100
Beginning inventory 20 2.000 100
Prel. val.Category Quantity Price diff. Price
Interactive Information
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 42
Price Differences occur with
External procurement (order / invoice value)
In-house production (settlement of orders)
Initial entry of stock balances (external value posted)
Transfer postings (standard price in involved plants)
Subcontracting (subsequent charging)
Debit / credit of material
Price Differences
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 43
Exchange Rate Differences occurExchange Rate Differences occur withwith
Goods Receipts with reference to Purchase Ordersif the exchange rate at the time of Invoice Receiptif the exchange rate at the time of Invoice Receipt
differs from the
exchange rate at the Time of Goods Receipts,Time of Goods Receipts, or from the assumed exchange rateassumed exchange rate
Prerequisite: You activate the treatment of exchange rate differences in Customizing!
Exchange Rate Differences
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 44
The Logistic InvoThe Logistic Invoice Verification ice Verification HAS TO BE HAS TO BE used with used with Material Ledger !!Material Ledger !!
AdvantagesAdvantages Invoice verification across company codes Distributed scenarios Any number of purchase orders / deliveries in a transaction Manual invoice reduction Total-based invoice reduction Supports transfer prices
For more Details, see Note 116272 (Release 4.0), 127366 (Release 4.5), or 144081 (Enjoy SAP)
The Logistic InvoThe Logistic Invoice Verification ice Verification HAS TO BE HAS TO BE used with used with Material Ledger !!Material Ledger !!
AdvantagesAdvantages Invoice verification across company codes Distributed scenarios Any number of purchase orders / deliveries in a transaction Manual invoice reduction Total-based invoice reduction Supports transfer prices
For more Details, see Note 116272 (Release 4.0), 127366 (Release 4.5), or 144081 (Enjoy SAP)
Example: Single-Level Price Differences / Logistics Invoice Verification
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 45
MaterialMaterialLedgerLedger
Inventory ValuationInventory Valuation
Example: Single-Level Price Differences/ Production Orders
Cost ObjectsCost ObjectsCost ObjectsCost Objects
Credit:
Goods Rreceipt:Credit at Standard Price
Work In Process- WIP at actual (total settlement)- WIP at target (periodic settlement)
Credit:
Goods Rreceipt:Credit at Standard Price
Work In Process- WIP at actual (total settlement)- WIP at target (periodic settlement)
Debit:
Material Costs (Standard price)
Activity Prices (optional: Actual Price)
Overhead costs
Process costs (optional: Actual Prices)
Debit:
Material Costs (Standard price)
Activity Prices (optional: Actual Price)
Overhead costs
Process costs (optional: Actual Prices)
Variances:Debit - goods receipt - WIP
Variances:Debit - goods receipt - WIP
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 46
Structured Value Chains: Process Types
1000
...
...
...
...
250
...
...
...
...
30
...
...
...
...
28.00
...
...
...
...
Cumulative inventory 2000 500 30 26.50
Other receipts/cons. 0 0 0
Preliminary Preliminary valuationvaluation
Preliminary Preliminary valuationvaluationQuantityQuantityQuantityQuantity
1000 250 25.00
PricePricedifferencedifference PricePrice
Beginning inventory
Receipts
Production
Purchase order
Stock transfer
Subcontracting
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 47
Controlling Levels of the Material
Process Type Process Type
Purchase orderPurchase order
SubcontractingSubcontracting
Stock transferStock transfer
Reposting/material
Reposting/material
ProductionProduction
Plant/materialPlant/material
Purchasing organization/ vendorPurchasing organization/ vendor
Plant/materialPlant/material
Purchasing organization/ vendorPurchasing organization/ vendor
Plant/materialPlant/material
Issuing plantIssuing plant
Plant/materialPlant/material
Issuing plant/ materialIssuing plant/ material
Plant/materialPlant/material
Production plant/ planning plantProduction plant/ planning plant
BOM / routingBOM / routing
Production versionProduction version
Procurement alternatives
Characteristics of the Controlling LevelsCharacteristics of the Controlling Levels
...
...
...
...
...
Vendor A, Vendor B, ...
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 48
Procurement Alternatives
1000
...
...
...
...
250
...
...
...
...
30
...
...
...
...
28.00
...
...
...
...
Cumulative inventory 2000 500 30 26.50
Preliminary Preliminary valuationvaluation
Preliminary Preliminary valuationvaluationQuantityQuantityQuantityQuantity
1000 250 25.00
PricePricedifferencedifference PricePrice
Beginning inventory
Receipts
Production
Purchase order
Vendor A/ Porg1
Vendor B/ POrg1....IR..
....GR...
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 49
Price analysis for single MaterialsPrice analysis for single Materials Cost Element Split of Periodic Unit Price
Cost Component Split of Material´s Price
50,00050,000 50,00050,000Raw MaterialsRaw Materials14,00014,000 10,00010,000 4,0004,000LaborLabor11,00011,000 7,0007,000 4,0004,000MachineMachine10,00010,000 10,00010,000Logistic ProcessesLogistic Processes
5,0005,000 5,0005,000Material OverheadsMaterial Overheads
90,00090,000 17,00017,000 73,00073,000TotalTotal
TotalTotal FixFix VariableVariable
Release 4.6c!
Release 4.6c!
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 50
Multi-Level Actual Costing (Overview)
Introduction of theNew ConceptIntroduction of theNew Concept
Preliminary Valuation andRecording of Differences
Price determination:Price determination:Calculation ofCalculation ofPeriodic Unit PricePeriodic Unit Price
Period End Closing:Revaluation of materialswith Periodic Unit Price
Preliminary Valuation andRecording of Differences
Price determination:Price determination:Calculation ofCalculation ofPeriodic Unit PricePeriodic Unit Price
Period End Closing:Revaluation of materialswith Periodic Unit Price
Three Steps in Actual CostingThree Steps in Actual Costing
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 51
Cost Controlling: Period End Activities
Cost ObjectControlling
Material Ledger2 3Cost CenterAccounting
Cost Center 1
Cost Center 2
1
External Procurement
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 52
Cost Controlling: Period End Activities Release 4.6
Cost ObjectControlling
Material Ledger2 3Cost CenterAccounting
Cost Center 1
Cost Center 2
1
External Procurement
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 53
Costing Run: Process Steps (1)
Actual Costing Run: Process StepsActual Costing Run: Process Steps
Selection: Selects all Materials in Plants with Price Determination „3“
Determine sequence: Determines, in which Sequence Materials are costed, andassigns all Materials to a Costing Level
Single-Level Calculates Actual Prices based on Single-level Price Determination: Price Differences
Multi-Level Calculates Multi-Level Actual Prices, including roll-up of PriceDetermination: Price Differences and revaluation Amounts from
Cost Centers & Business Processes (optional)
Post closing: Closes Period (Material Ledger), Revaluates Inventory with Periodic Unit Price (optional)
Mark material prices: Marks Periodic Unit Price for usage as Standard Price in aFuture Period
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 54
Costing Run: Revaluation of Activities andBusiness Processes
ProductionProduction MaterialMaterial
Cost CenterActivities
Cost CenterActivities
Business ProcessesBusiness Processes
Actual ./. PlanActual ./. PlanActual ./. PlanActual ./. Plan
Actual ./. PlanActual ./. PlanActual ./. PlanActual ./. Plan
PlanPlanPlanPlan StandardPriceStandardPriceStandardPriceStandardPrice
SettlementSettlementSettlementSettlement
Direct settlement to materials:Direct settlement to materials: Actual Actual activity pricesactivity prices
Actual costs of Actual costs of business processesbusiness processes
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 55
External ProcurementExternal Procurement External ProcurementExternal Procurement
ProductionProduction
ProductionProduction
Single-Level Price Determination
Single-Level Price DeterminationSingle-Level Price Determination Actual Material Price based onActual Material Price based on
Costs of Procurement Costs of Procurement
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 56
External ProcurementExternal Procurement External ProcurementExternal Procurement
ProductionProduction
ProductionProduction
Multi-Level Price Determination
Multi-Level Price DeterminationMulti-Level Price Determination Roll-up of price differencesRoll-up of price differences
from raw materials to from raw materials to
finished materials finished materials
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 57
Assignment of Price Differences
- Status: Determined Multi-Level - Price control: S-Price- Standard price: 25.00 MXN/100 PC- Stock value: 175 MXN- Periodic Unit Price: 26.50 MXN/100 PC
Receipts 1000 250 30 28.00
Cumulative inventory 2000 500 30 26.50
Ending inventory 700 175 26.50 10.50
Other receipts/consum 0 0 0 26.50
Consumption 1300 325 19.50 26.50
Preliminary Preliminary valuationvaluation
Preliminary Preliminary valuationvaluationQuantityQuantityQuantityQuantity
Beginning inventory 1000 250 25.00
PricePriceDiDiffff..
PricePrice
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 58
Multi-Level Actual Costing (Overview)
Introduction of theNew ConceptIntroduction of theNew Concept
Preliminary Valuation andRecording of Differences
Price determination:Calculation ofPeriodic Unit Price
Period End Closing:Period End Closing:Revaluation of materialsRevaluation of materialswith Periodic Unit Pricewith Periodic Unit Price
Preliminary Valuation andRecording of Differences
Price determination:Calculation ofPeriodic Unit Price
Period End Closing:Period End Closing:Revaluation of materialsRevaluation of materialswith Periodic Unit Pricewith Periodic Unit Price
Three Steps in Actual CostingThree Steps in Actual Costing
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 59
Costing Run: Process Steps (2)
Actual Costing Run: Process StepsActual Costing Run: Process Steps
Selection: Selects all Materials in Plants with Price Determination „3“
Determine sequence: Determines, in which Sequence Materials are costed, andassigns all Materials to a Costing Level
Single-Level Calculates Actual Prices based on Single-level Price Determination: Price Differences
Multi-Level Calculates Multi-Level Actual Prices, including roll-up of PriceDetermination: Price Differences and revaluation Amounts from
Cost Centers & Business Processes (optional)
Post closing: Closes Period (Material Ledger), Revaluates Inventory with Periodic Unit Price (optional)
Mark material prices: Marks Periodic Unit Price for usage as Standard Price in aFuture Period
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 60
Material consumptionMaterial consumptionVB 325
Material stockMaterial stock325 VBBI 250
ZU 250
GR/IR allocationGR/IR allocationRE 260 260 ZU
VendorVendor280 RE
Price differencePrice difference
ZU 10RE 20
Posting Example: before Closing Entries
GRGR
IRIR
CNSCNS
GRGR
GRGRIRIR IRIR
IRIR
CNSCNS
CNSCNSGRGR
Stock value:175 MXN
Stock value:175 MXN
Standard price: 25 MXN / 100 unitsPeriodic unit price: 26.50 MXN / 100 unitsStandard price: 25 MXN / 100 unitsPeriodic unit price: 26.50 MXN / 100 units
Beginning inventory (BI): 1000 PC / 250 MXNGoods receipt/purchase order: 1000 PC / 260 MXNInvoice receipt: for 1000 PC / 280 MXN Consumption: 1300 PC / 325 MXNEnding inventory: 700 PC
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 61
Beginning inventory (BI): 1000 PC / 250 MXNGoods receipt/purchase order: 1000 PC / 260 MXNInvoice receipt: 1000 PC / 280 MXN Consumption: 1300 PC / 325 MXNEnding inventory: 700 PC
Material consumptionMaterial consumptionVB 325
Material stockMaterial stock325 250
250
GR/IR allocationGR/IR allocation 260 260
VendorVendor280
Price differencePrice difference
10 20
Posting Example: Closing Entries (Revaluation)
Status: Closing entry performedPrice control: V (only old periods)
V price: 26.50 MXN / 100 units
Status: Closing entry performedPrice control: V (only old periods)
V price: 26.50 MXN / 100 units
ML accrual (LKW)ML accrual (LKW)
10.510.5
10.510.5CLCL
CLCL
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 62
Period 1 Period 2
Period 1:Prel.ValuationPeriod 1:Prel.Valuation
Stock Price Dif
Period 1: Act.CostingPeriod 1: Act.Costing
Stock Price Dif
+
Revaluation: Allocation of Price Differences
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 63
Period 1 Period 2
Price ControlDuring Period: Preliminary Valuation Price (S)After Closing Entries: Periodic Unit Price (V)
For Period 1:
Price Control: S
For Period 2:
Price Control S
For Period 1:
Price Control V
For Period 0:
Price Control V
Revaluation: Change of Price Control
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 64
Costing Run: Analysis of the Variances
AC530 1088Level 0 50Level 1 450Level 2 550Level 3 38....
Results overview Material list
Material Plant LevelSL ML CL S price Per. unit price % var.
1850 2560- 3580 1228,83
700 175 0 0
1250 560- 1580 1228.83
0 78- 150 1325,22
Single-level difference
Single-level differenceQuantityQuantity
1000 175 26,5010,50
Multileveldifference Price
Beginning inventory
Receipts
Production
Version1
Version 2....RE..
....WE...
850 560- 923 1123.45
ACT-BCD00 6000 1 750.00 745.00 -0.67ACT-LCD00 6000 1 25.00 26.50 6.00ACT-DCD00 6000 2 1177.50 1228.83 21.40ACT-DCD00 6100 3 1250.00 1188.20 -5.80...
Actual BOMProd. version 01: new machine Output quantity ACT-DCD00: 850 PCInput quantity ACT-LCD00: 888 PCInput quantity ACT-BCD00: 850 PC Inpt int. activity E 530CC00/530AT100 setup hours 12 H Inpt int. activity E 530CC00/530AT200 masch.hour 24 H
Actual BOMProd. version 01: new machine Output quantity ACT-DCD00: 850 PCInput quantity ACT-LCD00: 888 PCInput quantity ACT-BCD00: 850 PC Inpt int. activity E 530CC00/530AT100 setup hours 12 H Inpt int. activity E 530CC00/530AT200 masch.hour 24 H
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 65
IInventory nventory AAccounting ccounting WWithithMMaterial aterial LLedgeredger
Content
Why Why YYOOUU want Multi-Level Actual Costing! want Multi-Level Actual Costing!
Environment of Material LedgerEnvironment of Material Ledger
Traditional Valuation StrategiesTraditional Valuation Strategies
Actual Costing in Three StepsActual Costing in Three Steps
Future Prices; Customizing; GoodiesFuture Prices; Customizing; Goodies
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 66
Maintenance of Future Prices
Accounting 1Accounting 1
Actual Costing/ Material Ledger
ProcessProcess
MaterialInternalOHProcessRelease 4.6c!
Release 4.6c!
ManualPlanning
“Future Valuation Price”
BOM RoutingRouting
Product CostPlanning
MaterialInternalOHProcess
“Planned Price”
Costing 2Costing 2
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 67
Release of Future Price
Costing 2Costing 2Accounting 1Accounting 1
CurrentCurrentStandard PriceStandard Price
Costing 2Costing 2Planned PricePlanned Price
Accounting 1Accounting 1Future Valuation PriceFuture Valuation Price Manual ReleaseManual Release
Dynymic ReleaseDynymic Releasewith firstwith first
Material PostingMaterial Posting
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 68
IIMMGG
Customizing: Material Ledger / Actual Costing
Material Ledger Type for each valuation areaMaterial Ledger Type for each valuation area
Activate Actual Costingfor each valuation areaActivate Actual Costingfor each valuation area
Price determination(new materials)Price determination(new materials)
transaction-basedtransaction-based
single/multilevelsingle/multilevel
Activate Material Ledger for each valuation areaActivate Material Ledger for each valuation area
Maintain ML Number RangesMaintain ML Number Ranges
Dynamic Price Changes(optional for each valuation area)Dynamic Price Changes(optional for each valuation area)
Alternative Update Structure(optional for each valuation area)Alternative Update Structure(optional for each valuation area)
Production StartupProduction Startup
Currency and Valuation settingsCurrency and Valuation settings
Optional:Activity Types UpdateOptional:Activity Types Update
nono
yes, only quantitiesyes, only quantities
yes, with actual prices
yes, with actual prices
SAP AG 2000 (Jan-G. Groeneveld, Product Management R/3 Cost Management) / 69
Production Startup
To be starter from the Menu of Material Ledger
Creates Material Ledger Master Records
Converts stock values of Material Ledger to
stock values of Financial Accounting
(second and third currency)
Sets ML indicators in all Material Master records
Sets Material Price Determination Indicator
in Material Masters to „2“ (can be changed to „3“)
Fixes the Currencies used
Sets the Productive Indicator
Production StartupProduction Startup
See Note 108374