Controlling

FI Basic Settings
Step 1: Define Company (OX15)

And save
Step 2: Define Company Code (OX02)

And save

Following screen will appear. Update the required information

Enter and save

Step 3: Assign Company Code to Company (OX16)

And save
Step 4: Define Business Area (OX03)

And save
Step 5: Define Segments
Path: SPRO Enterprise Structure Definition Financial Accounting
Define Segment

And save

Step 6: Define Fiscal Year Variant (OB29)

For the company code TSL we are using V3 Fiscal year variant
Step 7: Assign Fiscal Year variant to company code (OB37)

And save
Step 8: Define Posting Period Variant (OBBO)

And save
Step 9: Define Open and Close Posting Period Variants (OB52)

And save
Step 10: Assign Posting Period Variant to Company Code (OBBP)

And save

Step 11: Define Field Status Variant (OBC4)

And save
Step 12: Assign Field Status Variant to Company Code (OBC5)

And save
Step 13: Define Chart of Accounts (OB13)

And save

Step 14: Assign Chart of Accounts to Company Code (OB62)

And save
Step 15: Define Account Groups (OBD4)

And save
Step 16: Define Retained Earnings (OB53)

And save

Step 17: Define Document Types (OBA7)

And save
Step 18: Define Tolerance Range for GL Accounts (OBA0)

And save
Step 19: Define Tolerance Range for Customer or Vendors (OBA3)

Step 20: Define Tolerance Range for Users (OBA4)

And save
Step 21: Create GL Accounts (FS00)

Step 22: Post GL Invoice (F-02)

CONTROLLING

Organizational Structure:
Operating Concern
Controlling Area
Company Code
I
Profit center -------Cost center 1

Cost center 2 ------Profit

center
Profit Centers are at controlling area level but Cost centers are at
company code level

Operating Concern: It is the highest node of organizational unit in SAP. It is

required in CO-PA module.
Controlling Area: It is the highest level of organizational unit in Controlling. At this
stage we can track overhead management, product costing, profit controlling.
Company code: It is one of the organizational units in FI. It is the place where we
prepare financial statements.

Scenarios: In controlling area we have two scenarios:

(i) Controlling area at company code level Each company code have
different controlling area
(ii) Controlling area at country level No. of company codes having one
controlling area
Prerequisites for 1st scenario:Chart of Accounts and fiscal year variant should be
same for all the company codes

Cost Element: It carries costs from FI module to CO Module. There are two
types of cost elements: Primary cost element and Secondary cost element.
Cost element codification finalizes at business blue print stage only. FI Consultant
finalizes primary cost element codification and CO Consultant finalizes secondary
cost elements
Primary Cost Elements:

01 primary cost element category values will not flow to CO-PA. Only 11 and 12
cost elements categories flow to CO PA.
Secondary Cost Elements:

Business Transactions: It is similar to document types in FI. In CO number

ranges are year independent.
Version: All CO values stored under versions
Version 0: The actual and planned values stored under zero versions. In addition
to zero versions we can maintain few more plan versions also but it is not
possible to maintain actual values in other than zero versions.

Basic Configuration Settings for Controlling:

Step 1: Maintain Controlling area (OKKP)
Path: SPRO Controlling General Controlling Organization
Maintain Controlling Area

CoCd-> CO Area:
Controlling area same as company code: If a company code uses one controlling
area
Cross company code cost accounting: If multiple company codes use one
controlling area
Currency type:
Group currency (30): For material Ledger, we have to select this currency
Controlling currency (20): It is nothing but our company code currency
Curr/Val. Profile:
We use this field, if we have transfer price concept either in profit center
accounting (or) in material ledger.

Double click on assignment of company code

Double click on activate components/control indicators button

Profitability Analysis: This field is automatically activated here, if we activate the

same in CO-PA
Profit Center Accounting: If we select this check box, then the system treats it as
a classic profit center accounting. For ECC 6.0 Version, no need to select this
check box
Projects: When we implement PS module, we select this check box

W. Commit. Mgt: When we implement FSCM module, we select this check box
Variance and CoCd validation: If more than one company code using same
controlling area then we haves to select the check boxes of variance and CoCd
validation
Step 2: Maintain Number Ranges (KANK)
Path: Same Path

Select maintain group button

Menu Group Insert and give the description & number range interval

Double click on all the business transactions

And then select check box of co doc no range interval for TSL
And then click on Assign element icon

and save

Step 3: Maintain Versions

Path: Same Path

Enter

Select on FY 2013 and click on details button

Planning Tab:

Version locked: If we select this check box, we cannot post to any transaction for
that particular FY
Integrated Planning with cost centers/bus. Process: In cost center master data
(KS01), we specify profit center. If we select this check box, whatever planning
we do for cost center the same will update in profit center also and vice versa.
But for ECC 6.0 Version, no need to select this check box

Price Calculation Tab:

And save

Plan Price: Plan price controls system calculated price:

System calculated price is the combination of both input planning (KP06) and
output planning (KP26)
In KP06, we will make planning by the combination of cost center and cost
element
In KP26, we will make planning by the combination of cost center and activity
type.
Periodic price formula: Current period input planning / current period output
planning
Average price formula: Total periods of input planning / total periods of output
planning

Cost Element Accounting

Creation of Primary Cost Element:
We can create cost elements in 3 ways:
A) In FI area FS00
B) In CO area KA01
C) Automatically we can create cost elements
In FI Area FS00

Select edit cost element button

Enter

And save
Note: We are not supposed to give cost centers or orders under default
assignment tab. Please find the below screenshot for further reference

In CO area KA01:

Enter

And save

Automatically we can create cost elements:

Creation of Automatic Cost Elements (OKB2)
Path: SPRO Controlling Cost Element Accounting Master Data Cost
Elements Automatic creation of primary and secondary cost elements Make
Default Settings

And save
Create Batch Input Session (OKB3)

Execute

Execute Batch input session in same path

Note: In the above steps, we gave the primary cost element categories for
revenues and expenses

Once the execution is completed, these primary cost element categories will
update in available GL Accounts.
If we select Automatic cost element (2nd option) in COA (OB13), then for all the
revenues and expenses GL accounts which we are going to create in future also
will be updated with these primary cost element categories only.
To View the Cost Elements (KA23)
To create cost element group (KAH1)
Creation of Secondary Cost Elements (KA06):
Cost Element

Name

Category

931000
931001
931002
931003
941000
941001
942000
943000
943001
943002
921000

Technical
WIP raw material
WIP activity cost
WIP indirect OH
Material OH
Activity OH
Assessment
Labour
Machine
Power
Internal Settlement

31
31
31
31
41
41
42
43
43
43
21

Creation of secondary cost element group (KAH1)

To view the cost elements (KA23)

Cost Center Accounting

We can create cost center in two ways: either in OKEON or KS01

1st Method: Define Standard Hierarchy (OKEON)
Give group name as Tata Steel Limited

Keep the cursor on TSL and right click and select Create cost center

And save

2nd Method: Creation of Cost center (KS01)

Enter

Save
To view the cost center (KS03)
Activity Types

Creation of Activity Types (KL01)

Path: SPRO Controlling Cost center accounting Master Data
Activity Types Create Activity Types
Note: To create activity types 43 cost element is required.

Enter

Save
In the same way, create activity types for Machine and Power also.
All the fields are remains same except below fields.
Machine: Activity unit HR and Allocation Cost element 943001
Power: Activity unit KWH and Allocation cost element 943002
Splitting Structure
Step 1: Maintain Splitting Structure (OKES)

Select new entries button

Select 01 splitting structure and double click on splitting rules button and select
new entries button

Select rule -01 splitting rule and double click on assignment folder

And enter

Select new entries button and give the below details

And save
Select Assignment 1 Labour Cost Split and double click on selection for
assignment folder
Select new entries button

Enter cost element - 400000 (salaries) and activity type Labour and save
Assignment 2:

Save
Assignment 3:

Save

Step 2: Assign Splitting Structure to Cost Center (OKEW)

Select change button

Select the check boxes of Production 1 and Production 2

And keep the cursor on splitting structure and assign

Activity Independent Planning (With splitting

structure)
1st case: Cost Element Assigned to Activity Type
Step 1: Maintain Input Planning (KP06)

Select overview button

And save

Step 2: Maintain Output Planning (KP26)

Select overview button

Save

Step 3: Run Plan Activity Price Calculation (KSS4)

Select test run check box and execute

Select back arrow

Remove test run check box and execute

Step 4: Create Production Cost Center Group (KSH1)

Enter

And save
Step 5: Price Calculation (KSPI)

Select settings button

Select not optimised check box

and save

Select back arrow and remove test run check box and execute
To view the system calculated price (KP27):

2nd Case: Unassigned Cost Elements

Step 1: Maintain Input Planning (KP06)

Select overview button

And save

Step 2: Maintain Output Planning (KP26)

Select overview button

And save

Step 3: Run Plan Activity Price Calculation (KSS4)

Execute

Here, we can see clearly that planned rent amount (1500) distributed to all the
three activity types equally.
Select back arrow and remove test run check box and execute

Step 4: Execute Price Calculation (KSPI)

Execute

Back arrow and remove test run and execute

To view the document (KP27):

3rd Case: Number of Activity types to Single Cost Element

Step 1: Creation of Secondary Cost Element (KA06)

And enter

Save

Step 2: Create Activity type (KL01)

Path: SPRO Controlling Cost center accounting Master Data

Activity Types Create Activity Types

Enter

Save
Step 3: Create Production Cost Center (KS01)

Enter

Save

Step 4: Creation of cleaning GL Master (FS00)

Make sure to give cost element as 1 and save

Step 5: Define Splitting Structure (OKES)

Select 1 and double click on assignments folder

Select 1 and double click on selection for assignment folder

Remove activity type Labourand then create activity type group by using KLH1
(or) through the path: MenuExtrasCreate Group.

Creation of activity type group:

Keep the cursor on Group (activity type) and give the description as Lab_clean
AT

Select Menu ExtrasCreate Group

Select insert activity type

Assign labour and clean activity types

And save
Select back arrow and save
Step 6: Assign Splitting Structure to Production cc 3 (OKEW)

Select edit button

Select the check box of production 3 and keep the cursor on splitting structure
for TSL and assign
Step 7: Assign Production 3 Cost Center to Production Cost Center
Group (KSH2)

Step 8: Create Cost Element Group (KAH1)

Enter

Select assign cost element button

Assign accounts and save

Step 8: Maintain Input Planning (KP06)

Select overview button

Save
Step 9: Maintain Output Planning (KP26)

Select overview button

And save
Step 10: Run Plan Activity Price Calculation (KSS4)

Execute

Remove test run and execute

Step 11: Run

Allocation Methods

There are four types of allocation methods:

A)
B)
C)
D)

Distribution
Assessment
Periodic posting
Indirect Activity Allocation
Distribution

Scenario 1: Sender rule posted amount and Receiver rule Fixed

percentage
Step 1: Creation of sender service cost centers (KS01)
Canteen service cost center:

Enter

Save

Admn service cost center:

Enter

Save

Step 2: Creation of Receiver Production Cost Center (KS01)

Production 4 cost center

Enter

Sa
ve

Production 5 cost center:

Save

Step 2: Define Distribution Cycle (KSV1)

Enter

Select Attach segment button

Segment header tab:

Senders/receivers tab:

Sender values tab:

Receiver tracing factor:

Save

Step 3: Posting an FI invoice (FB50)

Invoice posting to canteen cost center

Invoice posting to Admn cc

Save

Step 4: Execute Actual Distribution Cycle (KSV5)

Execute

Select sender button

Select back arrow and select receiver button

Select back arrow two times and remove test run and execute.
Note: If we want to test remaining scenarios but we execute KSV5 without test
run check box. Then we need to reverse the run in KSV5 from menu path.
After that if we want to test remaining scenarios, go to KSV2 and select first
segment button and make necessary changes

Scenario 2: Allocation amount excess than actuals (receiver rule fixed

amount)

Sender rule posted amount and receiver rule fixed amount

Step 1: Change Distribution Cycle (KSV2)

Enter

Select first segment button

Segment header:

Change receiver rule to fixed amounts

Senders/receivers tab:

Note: Dont touch it

Receiver tracing factor:

Note: Actually posted values to salaries and rent under canteen cost center is
10000 & 5000 respectively in scenario 1 (Step 3)
Actually posted values to salaries and rent under admn cost center is 20000 &
15000 respectively.
But here we are allocating more than actuals. Lets see the result in next step
Step 2: Execute Actual Distribution Cycle (KSV5)

Execute

Select sender button

Select receiver button

Scenario 3: Sender rule posted amounts and Receiver rule fixed

portions

Enter
Select first segment button
Segment header button:

Sender/receivers tab:

All the fields in this tab remain same

Receiver Tracing Factor:

Save
Step 2: Execute Actual Distribution Cycle (KSV5)

Execute

Sender button

Receiver button

Scenario 4: Sender rule fixed amount and receiver rule fixed portion

Step 1: Change actual distribution cycle (KSV2)

Enter

Select first segment button

Sender/receivers tab:

Note: These fields remain same

Sender value tab:

Receiver tracing factor:

Save

Step 2: Execute actual distribution cycle (KSV5)

Execute

Select sender button

Receiver button

Scenario 5: Sender fixed rates and receiver rule fixed portion

Step 1: Change Actual Distribution cycle (KSV2)

Enter

Select first segment button

Sender value tab:

Receiver tracing factor tab:

Save

Step 2: Execute Actual Distribution Cycle (KSV5)

Enter

Sender button

Receiver button

Scenario 6: Statistical Key Figure

Step 1: Creation of statistical key figure (KK01)

Enter

And save
Step 2: Maintain Employee Number (KB31N)

Save
Step 3: Change the actual distribution cycle (KSV2)

Enter

Select first segment button

Receiver tracing factor:

Save
Step 2: Execute Actual Distribution Cycle (KSV5)

Execute

Select sender button

Select receiver button

Assessment
Scenario 1: Assessment Cost Element

Step 1: Creation of service cost centers (KS01)

Enter

Save

Service cost center:

Enter

Save

Step 2: Creation of Production Cost centers (KS01)

Enter

Save

Assessment 2 production cost center:

Enter

Save

Step 3: Creation of Assessment Cycle (KSU1)

Enter

Select attach segment button

Segment header:

Senders/receivers tab:

Sender value tab:

Receiver tracing factor:

Save
Step 2: Posting of an invoices (FB50)

And save

Save

Step 3: Execute Assessment Cycle (KSU5)

Execute

Sender button

Receiver button

Scenario 2: Allocation Structure

Step 1: Create Secondary Cost Element (KA06)

Enter

Save

Step 2: Create Allocation Structure (KSES)

Select new entries

Save
Select 11 and double click on assignment folder
Select new entries

Select 01 salaries and double click on source folder

Give 400000 salaries account and save. Double click on assessment cost
element folder

Select new entries button

And save and select back arrow

Select 02 rent and double click on source folder

Give the rent account number and save. Double click on assessment cost
element folder

Give secondary cost element number and save

Step 3: Change of assessment cycle (KSU2)

Enter

Select first segment button

Remove assessment cost element number and give allocation structure and save

Step 4: Execute cycle (KSU5)

Execute

Sender button

Receiver button

FI-MM Integration

Define Valuation Area at Plant/Company Code Level (OX14)

Here, valuation area is defined at plant level

Step 1: Define Plant

Path: SPRO Enterprise Structure Definition Logistics General Define
Copy, Check and Edit Plant

Select new entries

And save
STEP2: Define Division
Path: Same Path
Select new entries

And save

STEP3: Maintain storage location

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

Select new entries

And save
Step 4: Maintain Purchase Organisation
Path: same Path
Select new entries

And save
Step 5: Assign plant to company code:
Path: SPRO-Enterprise structure Assignment- logistics General Assign plant to
company code
(OX18)
Select new entries

And save
Step 6: Assign business area to plant/valuation area and division
Path: Same path

Select plant/valuation area- division button

Select new entries

And save
STEP 7: Assign purchasing organization to company code
Path: Up to assignment the path is same Materials management Assign
purchasing organization to company code

And save
STEP 8: Assign purchasing organization to plant
Path: Same path

And save
STEP 9: Create purchasing groups
Path: SPRO-Materials management Purchasing Create purchasing groups

Select new entries

And save
STEP 10: Define material groups: (OMSF)
Path: SPRO-Logistic general Material master-Settings for key fields Define
Material groups
Select new entries

And save
STEP 11: Maintain company code for material management (OMSY)
Path: SPRO-Logistic General Material master-Basic settings-Maintain company
code for materials management
Select position button & give your company code

And save
Note:
If we select ABP (Allow back posting) check box then we are allow to post in
12/2012
If we select DBP (Dont back posting) check box then we are not allow to post in
12/2012

Step 12: Define attributes of material types (OMS2)

Path: up to the material master the path is same Basic settings Material typeDefine attributes of material types.
Select position button
Select FERT and select check boxes of Qty updating Value updating

Save
Select position button
Select HALB and select check boxes of Qty updating Value updating

Save
Select position button
Select HALB and select check boxes of Qty updating Value updating

Save

Step13: Set tolerance limits for price variance for purchase order

Path: SPRO-Material management Purchasing Purchase order set tolerance

limits for price variance.
Select keys ofPE and SE of company code 0001(sap standard)
Select copy as button

Enter

Save
Step 14 Plant parameters
Path:SPRO-Materials management Inventories management and physical
inventory Plant parameters
Select plant of 0001 (sap standard) and select copy as button

And save

Step 15: 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 keys of B1, B2 and VP for company code 0001 (sap standard)
Select copy as button

Enter

Enter

And save

Step 16: Maintain default values for tax codes

Path: SPRO- Materials management Logistics invoice verification-Incoming

invoice -Maintain default values for tax codes
Select new entries button

And save
Step 17: Set tolerance limits for invoice verification
Path: Up to logistics invoice verification the path is same Invoice block-Set
tolerance limits
Select tolerance keys of BD, ST and PP for company code 1000 and select copy
as button

Enter

Enter

And save
Step 18: Define automatic status change
Path: Up to the logistic invoice verification the path is same Invoice verification
in back ground Define automatic status change
Select new entries

And save
STEP 19: Group together valuation areas (OMWD)
Path:SPRO-Material management Valuation and account assignment-Account
determination-Account determination without wizard-Group together valuation
areas.

And save
STEP 20: Define valuation classes (OMSK)
Path: Same path
Click on Account category reference

Select new entries

And save
Click on Valuation Class tab

Select new entries

And save
Click on Material type/account category reference

Assign Account category reference for material types ROH,FERT and HALB

And save

Step 21: GL Accounts (FS00)

Create below GL Accounts

GL Creation.docx

Note:Make sure to assign 01 cost element for 400005; 400006; 400007 and
400008
Step 22:Assignment of accounts for automatic postings (OBYC)(MM to
FI INTEGRATION)
PATH: UP to account determination without wizard the path is same Configure
automatic Postings
Double click on transaction BSX inventory posting

And save

Save
Double click on WRX GR/IR Clearing account

Save

Save
Double click on GBB offsetting

Save

Save
Double click on PRD Cost (Price) Difference

Save

Save

Step 23: Document types and number ranges (OBA7)

WE:

Goods receipt (50)

WA:

Goods issue (49)

RE:

Gross invoice receipt (51)

Step 24: Create Material Master (MM01)

Creation of RM X material

Enter
Select Basic Data1, Basic Data2, Purchasing, MRP 1-4, General plant
data/storage 1-2, Accounting 1-2, Costing 1-2 tabs

Enter
Basic Data 1 tab:

Purchasing Tab:

MRP 1 Tab:

Accounting 1 Tab:

Costing 1 Tab:

Save

Case 1: Stock Fully Available

Creation of Purchase Order (ME21N)

Select RM Y, Import material and maintain tax code (if necessary)

And save
PO is created with 4500000015

Creation of Goods Receipt (MIGO)

Now select RM Import and give the storage location

And save
MIGO is created with 5000000020

FI Accounting Document:

Creation of Invoice Verification (MIRO):

And save
MIRO is created with 5105600771
Note: In PO we have given 1000 and 2000 for RM X and RM Y respectively. Here,
we have increased the amounts to 1500 and 2500. Hence accounting document
appears as follows:

FI Accounting Document:

Check the updated price in MM03

RM X

Plant Stock

Check the RM Y also in the same way

Case 2: Stock Partially Available

Available stock in MM03 for RM Y

Creation of PO (ME21N)
Raising PO for another 4 KGs @ 250/-

Creation of Goods Receipt (MIGO)

And save

FI Accounting Document

MM03: Stock has increased to 14 and value 3500/-

RM Consumption (MIGO):

And save

FI Accounting Document

CO Accounting Document

One more consumption for 10 QTY:

FI Accounting Document

CO Accounting Document

MM03: Check the stock in material master

Previously available stock

10

PO and GR has been done for

Consumption (3+10)

13

Available Stock (10+4-13)

Prerequisite for MIRO:

For 400008 price variance GL Account, we have given cost element. We have to
maintain default cost center in OKB9 for time being. Otherwise we will get an
error while doing MIRO. Once profitability analysis has been activated, remove
the default cost center and select the check box of profitability segment.

Creation of Invoice Verification (MIRO):

Change the amount from 1000/- to 1100/- (highlighted automatically which was
given at PO time)

And save

FI Accounting Document:

At invoice verification time, we had increased price from 1000 to 1100/- for 4
quantities, hence price calculated as below:
Increased value = 100 and PO has been raised for 4 quantities
Available stock in material master = 1 and Consumed stock = 3 out of 4
RM Import (available stock) = 100*1/4 = 25
Price Variance (consumed stock) = 100*3/4 = 75

Check the material master (MM03):

Previously, we had moving price of 250/- and now it is 275/- (25/- added due to
increase of amount at time of invoice verification

Case 3: Stock is not available

Check the material master (MM03)

Presently, RM Y material had 1 qty of stock @ 275/-

Creation of PO (ME21N):

Creation of Goods Receipt (MIGO)

FI Accounting Document

Check moving average price in MM03:

Previously moving average price was 275 and PO has been raised for 250/-. Total
value was 525
Goods Issue (MIGO) Raw material Consumption

FI Accounting Document:

CO Accounting Document:

Check the stock in material master:

Now, stock has been fully consumed

Creation of Invoice Verification (MIRO):

FI Accounting Document

PO has been raised for 250/- and invoice verification done for 250/- and more
over stock was not available. Hence difference amount (25 = 275-250) was
posted to price variance
CO Accounting Document:

Product Costing
Step 1: Define Calculation Bases
Path: SPRO Controlling Product Cost Controlling Basic Settings for
Material Costing Overhead Costing Sheet: Components Define
Calculation Bases
Select new entries

And save
Select RAM and double click on details folder

Enter
Cost portion Total and select new entries

And save. Select back arrow

Select POH and double click on details folder

Enter
Cost portion Total and select new entries

And save
Step 2: Define Percentage OH Rates
Path: Same Path
Select new entries

Save. Select ROH and double click on details button

Ignore the warning message

Select new entries

And save. Select back arrow

Select COH and double click on details button
Select new entries

And save

Prerequisite step before step 3:

Step 3: Define Credits

Path: Same Path
Select new entries

Save
Select MCK and double click on details button

And continue button

Select new entries button

And save
Select CCK and double click on details button

And save
Step 4: Define Costing Sheet
Path: SPRO Controlling Product Cost Controlling Product Cost Planning
Basic Settings for Material Costing Overhead Define Costing Sheets
Select new entries

And save
Select TSLCS and double click on costing sheet rows and select new entries

And save
Step 5: Define Valuation Variant
Path: SPRO Controlling Product Cost Controlling Product Cost Planning
Material Cost Estimate with Quantity Structure Costing Variant: Components
Define Valuation Variants
Select new entries button
Material Valuation Tab:

Activity Types/Processes Tab:

Subcontracting:

External Processing:

Overhead:

And save

Step 6: Maintain Cost Component Structure

Path: SPRO Controlling Product Cost Controlling Product Cost Planning
Basic Settings for Material Costing Define Cost Component Structure
Select new entries

And save
Select 11 (CCS for TSL) and double click on cost components with attributes
Select new entries Raw material Local

And save

Select next entry

- Raw material Import

And save
Select next entry

- Labour Cost

And save
Select next entry

- Machine Cost

And save
Select next entry

- Power Cost

And save
Select next entry

- Material OH

And save
Select next entry

- Activity OH

And save
Select next entry

- Cleaning Cost

And save and select back arrow

Select 1 (Raw material Local) and double click on Assignment: Cost Component
Cost Element Interval
Select new entries

And save and select back arrow

Select 2 (Raw material Import) and double click on Assignment: Cost Component
Cost Element Interval
Select new entries

And save and select back arrow

Select 3 (Labour Cost) and double click on Assignment: Cost Component Cost
Element Interval
Select new entries

And save and select back arrow

Select 4 (Machine Cost) and double click on Assignment: Cost Component Cost
Element Interval
Select new entries

And save and select back arrow

Select 5 (Power Cost) and double click on Assignment: Cost Component Cost
Element Interval
Select new entries

And save and select back arrow

Select 6 (Material OH) and double click on Assignment: Cost Component Cost
Element Interval
Select new entries

And save and select back arrow

Select 7 (Activity OH) and double click on Assignment: Cost Component Cost
Element Interval
Select new entries

And save and select back arrow

Select 8 (Cleaning Cost) and double click on Assignment: Cost Component Cost
Element Interval
Select new entries

And save
Double click on Cost component group folder and select new entries

And save
Double click on cost components with attributes folder

Select cost component 01 (Raw material local) and select detail button

Save and select back arrow

Select cost component 02 (Raw material Import) and select detail button

Save and select back arrow

Select cost component 03 (Labour Cost) and select detail button

Save and select back arrow

Select cost component 04 (Machine Cost) and select detail button

Save and select back arrow

Select cost component 05 (Power Cost) and select detail button

Save and select back arrow

Select cost component 06 (Material OH) and select detail button

Save and select back arrow

Select cost component 07 (Activity OH) and select detail button

Save and select back arrow

Select cost component 07 (Activity OH) and select detail button

Save

Double click on Assignment: Organizational Units Cost Component Structure

Save and select back arrow twice. Select active check box

Once we activated the cost component structure. We get the following message
. Save
Define Costing Type
Path: SPRO Controlling Product Cost Controlling Product Cost Planning
Material Cost Estimate with Quantity Structure Costing Variant: Components
Define Costing Types
Select 01 (Standard Cost Estimate) and click on details button

Following screen will appear

Note: Dont make any changes. Make sure of standard price and legal valuation
Step 7: Define Date Control

Path: Same path

Select PC01 and select copy as button

And save
Note: Standard date control is PC01. If we select manual entry check box, we can
change the dates in front end if required
Step 8: Define Quantity Structure Control
Path: Same Path
Select PC01 and select copy as button
BOM Tab:

Routing Tab

And save
Step 9: Define Transfer Control
Path: Same Path
Select PC01 and select copy as button

And save

Step 10: Define Costing Variant

Path: SPRO Controlling Product Cost Controlling Product Cost Planning

Material Cost Estimate with Quantity Structure Define Costing Variant
Select PPC1 and select copy as button
Give description as TSL and enter twice. Select TSL and then select details
button

And save
Qty Struct. Tab:

Ignore Prod Cost Est w/o Qty Structure: If we select this check box, systems
throws an error message if we run cost estimate without BOM and Routing.
Transfr Ctrl Can Be Changed: If we select this check box, then system allows us
to change the transfer control in front end
Transfer Active Std Cost Est. if Mat. Costed w/Errors: If we select this check box,
the cost will move to higher level, eventhough the cost estimation is wrong
Additive Costs Tab:

Include Additive Costs with Stock Transfers:If we select this check box, system
includes additive costs also.
Update Tab:

And save.

Step 11: Maintain Fixed Price for Activity Types (KP26)

Select overview button

Select next combination button

Save
Step 12: Creation of Work Center (CR01)

Path: SAP Easy Access Logistics Production Master Data Work centers
Work Center Create
Creation of Work center 1

Enter

And save

Creation of work center 2:

Enter

And save

Step 13: Creation of Materials (MM01)

Please find the attached document for creation of RM A, RM B and FG A Materials
and for PO and MIGO

Creation of Materials
and PO, MIGO.docx

Step 14: Creation of BOM (CS01)

Enter

Select Item Category as L (Stock Item)

And save

Step15: Creation of Routing (CA01)

Enter

Select operations tab

Note: After entering the work center and control key, press enter. Then only we
will get the activities
And save
Step 16: Run Standard Cost Estimate (CK11N)

Press on enter still we get standard cost estimate

And save

BOM

QTY in
BOM

BOM
Price in
MM03

RM A

10

6.67

RM B

15

13.33

Total
66.6
7
199.
95
266.
62

Overhe
ad

BOM

266.62
*15%

40

Routing
Se
t
FP in
Up KP26
60
10
12
0
20

Tot
al
600
240
0

Machi
ne
240

FP in
KP26
15

180

30

Total
3600

Labo
ur
300

FP in
KP26
5

Total
1500

5400

240

25

6000

Overhea
d

Routi
ng

19500*2
0%

Total Costs = Fixed Costs (23,400) + Variable Costs (306.65)

Fixed Costs =

3900

Grand
Total
5700
13800
19500

13800+5700+3900 =23400
Variable Costs = 266.65+40 =
306.65

To view the breakup of fixed and variable costs:

Menu Costs Display Cost Components

And save
Check the material master before running price update

No values were updated in costing 2 tab

Step 16: Price Update (CK24)

Select Marking Allowance button

Select TSL and give costing variant as TSL

Save

Select back arrow

Remove test run check box

And execute

Select back arrow

Double click on FG A material

Note: When it is marked, price was updated in future tab. Whenever it is

released it will update in Current tab
Select back arrow twice and select release tab
Remove test run check box and select execute button

Select back arrow

Select FG A material

Now the price was moved to current tab due to release

To View the price change documents (CKMPCSEARCH):

Execute.

Double click on Document number.

Enter

Click on Accounting Documents to view the Accounting Documents

Note: Here Accounting document was not updated at the time of price update
(CK24) because stock was not available in FG A material master.
For that purpose we are uploading initial stock through MB1C

Prerequisites for MB1C:

Initial Stock GL Account (FS00):

FI MM Integration (OBYC):

And save

Initial stocks upload for MB1C:

Enter

And save

Accounting Document:

Journal Entry:
Finished Goods A/C Dr
To Initial Stock Account
Check FG A Material Master (MM03)