STEP 1.

DEFINING CONTROLLING AREA PATH SAP EASY ACCESS ACCELERATED SAP CUSTOMISING ENTERPRISE STRUCTURE

NEW ENTRIES give new controlling area no., name & persons responsible Assignment control 1st choice if company code = co area. 2nd choice if company code different than co area Currency 10 when only one currency is used throughout the Co. 20 when different branches in different countries use different currencies Assign COA Fiscal year variant fiscal year definition All the above four elements come from Company code settings.

STEP 2 ASSIGMENT OF COMPANY CODE TO CONTROLLING AREA

Assign CO code to CO area Go to new entries to assign CO code to controlling area

STEP 3 CONTROLLING GENERAL PATH General controlling Organisation Maintain controlling area Maintain number ranges Maintain versions

1. MAINTAIN CONTROLLING AREA A. Under BASIC DATA enter standard hierarchy for CO

B.

Under ACTIVATE COMPONENTS/CONTROL INDICATORS fill up the following

System will ask for fiscal year 2000 to 9999 Then, active the necessary components like cost centres, profit centre, order etc.

2. MAINTAIN NUMBER RANGES

Number ranges are given number to the dox created in CO Maintain number ranges Enter controlling area & go to GROUP Insert GROUPS & assign number ranges. (if 4 groups are created, create 4 number ranges) Then assign the transaction groups (elements) to the group

3.

MAINTAIN VERSIONS Settings in controlling area set the plan/act version

A new version can also be created. But it can have only plan data. For actual data version 0 is always used by system. Go to new entries for more versions. Set years in profit centres

Set years, click on years and set other data in fiscal years

With the above settings, the system is ready for cost centre accounting. Following master data can be created now Cost centre groups Cost centres Cost element group Cost elements Activity types SKF

STEP 4 DEFINING DISTRIBUTION CYCLE

To define distribution cycle attach segments - define sender & receiver cost centres & cost elements receiving tracing factors

To define assessment cycle define assessment element attach segments - define sender & receiver cost centres & cost elements receiving tracing factors

In distribution, individual cost elements under a cost centre are distributed to cost centres whereas in assessment, total cost collected under a particular cost centre are distributed to cost centres. With the above settings, system is ready to perform cost centre accounting

PRODUCT COSTING PATH Controlling Product cost controlling Product cost planning Basic setting for material costing Define cost component

STEP 1 DEFINE COST COMPONENT STRUCTURE

In this we define how costs will broken up in various components in product costing

For calculating cost estimates, cost component structure is a prerequisite. Otherwise

system gives message cost component structure not defined. If the above setting is not defined, system gives error message cost element not assigned to cost component

After cost elements are assigned to cost components, they should be assigned to organisation units. ++++ denotes masking. It means the function is valid for all the compony codes under that particular co area. After the components are assigned to organisation units, activate the cost component structure (1st screen tick)

STEP 2 DEFINE COSTING VARIANT

The following are defined in this Costing type the main function is to determine which price to update on material master

Valuation variant determines the valuation strategies for material valuation

If system is unable to find price as per valuation strategy, system gives error message no price could be determined as per valuation strategy as per valuation variant. To correct it, check valuation variant, acct view of mat pric.

Date control id determines quantity structure date & value structure date

Quantity structure control determines the boms & routings

STEP 3 Checking settings in production Check settings in WORK CENTRE, ROUTING, ORDER WORK CENTRE PATH PRODUCTION BASIC DATA WORK CENTRE GENERAL DATA STANDARD VALUE Here parameters for SV are defined. Parameters like machine hour, labour, set up time etc. are defined in parameters SV key is defined after the parameters are defined. SV key contains the parameters. SV key defines the activities to be performed in the operations. It can contain max 6 parameters. Cost centre assignment of work centre - every work centre is assigned to a cost centre where activities (machine hour, labour etc.) are planned. Since only 6 activities are allowed in SV key, only 6 activities can be planned. In a work centre, activities are attached to the parameters in SV key and formulae are attached to the activities. These are SAP defined formulae. SAP allows user to define his own formulae. If the formulae are not attached to work centre, following error message comes MISSING FORMULA IN WORK CENTRE ROUTING - tick in the cost indicator is necessary. Without this tick, the operation defined in the routing will not be taken into costing.

ORDER - Things to be checked in PP BOM application, default rule, costing variant & result analysis key. The same BOM application is used in quantity structure determination in costing variant.

STEP 4 CHECKING CUSTOMISING IN PRODUCTION ORDER 1. Check the costing variant for plan & actual production

2.

check valuation variant in the costing variant

3.

check default values for order cost estimate

STEP 5 DEFINE GOODS RECD VALUATION FOR ORDER DELIVERY ASSIGNING VALUATION VARIANT FOR ORDER COSTING PATH CONTROLLING PRODUCT COST CONTROLLING PRODUCT COST BY ORDER DEFINE GOODS RECD VALUATION FOR ORDER DELIVERY Valuation variant as it appears in PPP2 (costing variant for order costing actual) should appear for all the valuation areas defined in the COMPANY CODES.

VARIANCE CALCULATION FOR PRODUCTION ORDER Variance keys & variants are defined to calculate the variances on production orders Variance key is attached to the plant and variance variant is attached to the target cost.

SETTLEMENT PROFILE FOR PRODUCT ORDER SD1

The settlement profile SD1 is assigned to order type PP01. That means when a production order is created, it is created with this settlement profile.

Settlement profile SD1 contains allocation structure A1 that receives the cost on the order and on the other hand it contains the permitted settlement receiver.

ALLOCATION STRUCTURE A1

For intertrade assigement chosen is 60 - all costs. By all costs it means the balance on production order when settled will be a total figure. One may choose different types of assignments by which the balance on production will be segregated costwise.

The above screen defines the receiving categories. If any new cost element is created, system gives following error message while settling the production order cost element not attached to settlement profile In such case, attach the cost element to cost element group all For internal order settlement , profile 20 is used.

For service order, settlement profile 80E is used.