cost of sales accounting (161) -...

EHP4 for SAP ERP 6.0

March 2010

English

Cost of Sales Accounting (161)

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

Business Process Documentation

SAP Best Practices Cost of Sales Accounting (161): BPD

© SAP AG of 17

Copyright

© 2010 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint

are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or

registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web

Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, Clear Enterprise, SAP BusinessObjects

Explorer, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as

their respective logos are trademarks or registered trademarks of SAP France in the United States and in other countries.

All other product and service names mentioned are the trademarks of their respective companies. Data

contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its

affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of

any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only

warranties for SAP Group products and services are those that are set forth in the express warranty

statements accompanying such products and services, if any. Nothing herein should be construed as

constituting an additional warranty.


© SAP AG of 17

Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the

ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.


© SAP AG of 17

Contents

1 Purpose ................................................................................................................................... 5

2 Prerequisites............................................................................................................................ 5

2.1 Master Data ...................................................................................................................... 5

2.2 Roles ................................................................................................................................ 5

2.3 Preliminary Steps ............................................................................................................. 6

3 Process Overview Table ......................................................................................................... 6

4 Process Steps ......................................................................................................................... 8

4.1 Posting General Ledger Accounts Documents with Functional Area .............................. 8

4.2 Posting a Customer Invoice ........................................................................................... 11

4.3 Posting Vendor Invoices ................................................................................................ 11

4.4 Period End Processing ................................................................................................... 12

5 Closing Reports and Notifications ......................................................................................... 14

5.1 Balance Sheets and P&L Statements ............................................................................ 14

5.2 Cost of Sales Accounting - P&L Statements .................................................................. 15

6 Appendix ................................................................................................................................ 17

6.1 Reversal of Process Steps ............................................................................................. 17

6.2 Used Forms .................................................................................................................... 17


© SAP AG of 17

Cost of Sales Accounting

1 Purpose Cost of sales accounting compares the sales revenues for an accounting period with the costs involved with the production of the sold products. The expenses are allocated to the commercial functional areas (for example manufacturing, sales and distribution, administration and marketing). Expenses and revenues that cannot be assigned to the functional areas are reported in further profit and loss items, sorted according to expense and revenue type.

With this type of grouping, cost of sales accounting identifies where costs originate in a company. It therefore portrays the commercial purpose of the expense.

2 Prerequisites

2.1 Master Data

You have entered the master data required to go through the procedures of this scenario. Ensure that the following scenario-specific master data exists before you test this scenario:

Master Data Value Selection Comment

Customer * All Cost of Sales Accounting needs to be assigned to a customer.

For master data creation compare Central Master Data (152) scenario

Vendors * All Cost of Sales Accounting needs to be assigned to a vendor.

For master data creation compare Central Master Data (152) scenario

G/L Accounts * ALL Cost of Sales Accounting needs to be assigned to all G/L accounts

Cost Center * ALL Select all cost centers

2.2 Roles

Use

The following roles must have already been installed to test this scenario in the SAP Netweaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites

The business roles have been assigned to the user who is testing this scenario.

Business Role Technical name Transaction

Employee (Professional User)

SAP_NBPR_EMPLOYEE-S Assignment of this role is necessary for basic functionality.


© SAP AG of 17

Finance Manager SAP_NBPR_FINACC-M S_PL0_86000028

GR55

General Ledger Accountant SAP_NBPR_FINACC-S FB50

Accounts Payable Accountant

SAP_NBPR_AP_CLERK-S FB60

Enterprise Controller SAP_NBPR_CONTROLLER-M KB61

2.3 Preliminary Steps

You have made the required settings in Customizing. For more information, see Activating Cost of Sales Accounting in customizing requirements.

Set Controlling Area

Use

The controlling area is to be set before you carry out the first steps in controlling.

If the controlling area is already assigned in the user parameters (see the Quick Guide), this step is no longer necessary and can be omitted.

Procedure

1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Accounting Controlling Cost Element Accounting

Environment Set Controlling Area

Transaction code OKKS

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Enterprise Controller

(SAP_NBPR_CONTROLLER-M)

Business role menu Overhead Cost Controlling Actual Postings Actual

Posting Preparation Set Controlling Area

2. On the Set Controlling Area screen, enter Controlling area 1000.

3 Process Overview Table Posting General Ledger Accounts Documents with Functional Area

Process step External process reference

Business condition

Business role

Transaction code

Expected results

Posting a G/L Account Document

You post a GL Document with cost assignment object so as to

Finance Manager

FB50 You have booked a document with different functional areas. Derived from the cost

http://help.sap.com/saphelp_erp2005vp/helpdata/en/43/de244192bb8739e10000000a1550b0/content.htm

http://help.sap.com/saphelp_erp2005vp/helpdata/en/43/de244192bb8739e10000000a1550b0/content.htm


© SAP AG of 17


Business condition

Business role

Transaction code

Expected results

derive functional area.

centers item, the account item or the substitution

Posting a Customer Invoice

Refer SD Document

You post a Customer Invoice with the object so as to derive the correct functional area.

Reference J34: Sales Order Processing: Sale from stock

The document is posted to the database and the G/L account and customer transaction figures are updated. Appropriate Functional areas are derived as well.

Posting Vendor Invoices

You post a Vendor Invoice with cost assignment object so as to derive functional area

Accounts Payable Accountant

FB60 The document is posted to the database and the G/L account and customer transaction figures are updated. Appropriate Functional areas are derived as well.

Period End processing


Business condition

Business role

Transaction code

Expected results

Line item reposting (Cost object re-assignment)

Treatment of unassigned functional areas and/or wrong derivation of functional areas at period end

Enterprise Controller

KB61 You have manually reposted line item from wrongly assigned cost center to appropriate cost center and with this reposting appropriate functional areas is also derived

Reports


Business condition

Business role

Transaction code

Expected results

Balance Sheets and P&L Statements

To generate a reconciled period end balance sheet and P&L statement.

Finance Manager

S_PL0_86000028

The report for creating balance sheets and P&L statements does not make any postings; it only calculates the balance sheet and P&L result and displays this in


© SAP AG of 17


Business condition

Business role

Transaction code

Expected results

the balance sheet and P&L statement.

Cost of Sales Accounting - P&L Statements

To generate P&L statement in cost of sales accounting format

Finance Manager

GR55 The P&L Statement is shown in cost of sales accounting format

4 Process Steps

4.1 Posting General Ledger Accounts Documents with Functional Area

Use

You receive G/L account documents that have to be posted manually in the SAP system. You want to split the documents on different functional areas.

Prerequisites

Settings have been maintained in Customizing.

Procedure

The following describes how G/L account documents are posted in the SAP system. In the example used here, office supplies are purchased via a bank subaccount. Refer to document 156 for GL account postings.



SAP ECC menu Accounting Financial Accounting General Ledger Posting

Enter G/L Account Document

Transaction code FB50


Business role General Ledger Accountant

(SAP_NBPR_FINACC-S)

Business role menu General Ledger Posting Posting Post G/L Account Document

2. Enter the following data if it is not already been defaulted by the system:

Field name Description User action and values Comment

Company Code

CORPRATE CENTER


© SAP AG of 17

1000

UNICO

2000

CAP

3000

UFL

4000

SWAN

4010

GCL

5000

3. Choose Enter.

To change the company code, choose Edit Change Company Code.

4. Enter the following basic data:


Document Date <Today's date>

Posting Date <Today's date>

Reference <Reference>

Currency NGN

Details tab Select the tab

Calculate Tax Select If you want the system to calculate the tax when you post a document (as in our example), choose Details and select the Calculate Tax indicator.

5. Enter the following data for the first line item:


G/L Account * For example 640020 - Office stationery

D/C Debit S – Debit

Amount in Document Currency

* For example 500,00

Tax Code V1 5% input tax/see entry from example

Cost Center * for example 1101(different functional area assignment)


© SAP AG of 17

6. Enter the following data for the second line item:


G/L Account * For example 640020 - Office stationery

D/C Debit S – Debit


* For example 500,00

Tax Code V1 5% input tax

Cost Center

CORPRATE CENTER

Cost center 1002

CHIEF FINANCIAL OFFICER

UNICO

Cost center 2002 COMMERCIAL

CAP

Cost center 3010 FINANCE/IT

UFL

Cost center 4010

PROCUREMENT – HEAD OFFICE

SWAN

Cost center

4120

PROCUREMENT – HEAD OFFICE

GCL

Cost center 5177 Quality Assurance

7. Enter the following data for the other line items:


G/L Account * For example 161613 - Bank clearing account

D/C Credit


*

For example 1000

Value Date * For example todays date. Double click on line item to maintain the date.

8. To check the document before it is posted, choose Simulate (F9). This enables you to display the document, including the input tax to be posted, and to correct it if necessary. Confirm any messages that appear with Enter.

9. Choose Post (Ctrl + S).


© SAP AG of 17

10. In the lower area of the screen, the system outputs the message Document xxxxxxxxx was posted in the company code where xxxxxxxxxx is the sequential document number assigned by the system.

11. Make a note of the document number.

Result

You have booked a document with different functional areas. Some automatically set the functional Area from the cost centers item, the account item or the substitution.

4.2 Posting a Customer Invoice

Use

Customer invoice posted with derivation of functional area. After posting the invoice make a note of document number.

Procedure

To execute this activity, run Sales Order Processing: Sale from stock (109) scenario using the master data from this document.

4.3 Posting Vendor Invoices

Use

You receive the invoice from the vendor and post it in the system. While posting a vendor invoice for material, it is posted in MM (Refer to document I74) or if it is other than for material, it can also be posted in FI. For this BPD we post an FI invoice.

Procedure



SAP ECC menu Accounting Financial Accounting Accounts Payable

Document Entry Invoice

Transaction code FB60


Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK-S)

Business role menu Accounts Payable Posting Invoices Enter Vendor Invoice w/o PO Reference

2. On the Enter Vendor Invoice: Company 1000 screen, make the following entries:


Vendor Refer to Master Data

Invoice Date <Today's date>


© SAP AG of 17


Posting Date <Today's date>

Reference <Vendor’s invoice

number> Refer to Master Data


*

Currency NGN

Calculate Tax X

G/L Account 6xxxxx eg 600000

D/C Debit

Amount *

Tax Code V1

Cost Center <enter cost center>

3. Choose Post (Ctrl +S).

Result

The invoice has been posted. Make a note of the document number.

4.4 Period End Processing

Use

Treatment of un-assigned functional areas (Dummy functional area) and / or wrong derivation of functional areas at period end.

During the business transactions, based on the cost center / internal order mapping to the functional area, the expenditure and income are assigned to appropriate functional Area. However due to incorrect assignment of functional areas in master data or due to wrong assignment of cost object while posting document incorrect derivation of functional areas will occur. It can also happen the dummy functional area is derived because of non assignment of functional areas in master data of cost objects or P&L accounts. At period end you need to ensure that any such incorrect assignments are appropriately allocated to respective functional area.

We use line item reposting of cost object assignments (Cost center, internal order etc) to derive appropriate functional area. Line item reposting can be carried for multiple documents in a single transaction using one document and should be carried out with care.

Prerequisites

You have analyzed the reasons for wrong assignment of functional area and you have ascertained the new cost centers, internal order etc. where the wrong assignment needs to be reposted. To execute this process you should have already posted a document with cost object assignment, which you will correct now. However before carrying out line item reposting it has to be first ascertained the reason of incorrect assignment and appropriate steps needs to be taken like appropriate assignment in master data maintenance, for example to avoid similar incorrect postings in future period. This will help in avoiding future corrections if the assignment was due to wrong assignment in master data, for example


© SAP AG of 17

If the wrong assignment has not been due to inappropriate assignment of cost object, but because of wrong assignment of P&L accounts to functional areas, you cannot use manual reposting of primary cost method to correct the functional area derivation.

In such case you have to reverse the incorrect FI document, then make the correction in the assignment of P&L account to appropriate functional area derivation and then post the new FI document using correct cost object assignment, wherever applicable. Refer to document N75 – General ledger for how to reverse the original FI document and post a FI document.

It is possible to correct the functional area assignment using reversal of the original FI document and then posting of new FI document with correct assignment in the current scenario as well where it was due to wrong assignment of cost object. However manual line item reposting of cost objects is preferred because of simplicity it provides in making the correction.

Procedure



SAP ECC menu Accounting Controlling Cost Center Accounting Actual

Posting Repost Line items Enter

Transaction code KB61


Business role Enterprise Controller

(SAP_NBPR_CONTROLLER-M)

Business role menu Overhead Cost Controlling Actual Postings Actual Postings Enter Reposting of CO Line Items

2. Enter the following basic data on Enter Line Items Repostings: Document Row Selection.


Document Number

XXXXXXXX Enter the document number which needs correction. Here multiple document numbers can be selected if mass change is required.

Company Code <company code>

Fiscal year <Current fiscal year>

3. Choose Execute (F8).

4. On the Enter Reposting of Line items: List screen, enter the following data:


Document Number XXXXXXXX This is the document number which was initially selected for reposting.

Item no 001

Value Tran Curr <Amount that needs

to be reposted to

new cost object>

For example. Usually the whole amount needs to be reposted and you need not make any entry here.


© SAP AG of 17

Oty * Enter the Object type to which the new posting is required. (you can use internal order as well)

Acct Assgt1 * Cost Center

5. Choose Post (Ctrl + S).

Result

You have manually reposted line item (costs) from incorrect cost center to appropriate cost center and with this reposting appropriate functional areas is also derived. You can display the

changes the posting made by using the menu path Accounting Controlling Cost Center

Accounting Actual Posting Repost Line items Display (Tcode KB63).

The derivation of functional area can be checked using reports.

5 Closing Reports and Notifications

5.1 Balance Sheets and P&L Statements

Prerequisites

You have already made the preparatory postings for the balance sheets and P&L statements and valuated the foreign currency balance sheet accounts and open items in foreign currencies.

Every new functional area must be included in the financial statement version.

Your Financial Accounting has to be reconciled with Controlling.

Procedure



SAP ECC menu Accounting Financial Accounting General Ledger

Information System General Ledger Reports (NEW) Financial

Statement / Cash Flow General Actual/Actual Comparisons Financial Statement: Actual: Actual Comparison

Transaction code S_PL0_86000028


Business role Finance Manager

(SAP_NBPR_FINACC-M)

Business role menu General Ledger Periodic Processing Reporting Fin. Statements: Act/Act Comparison

2. On the Selection. Fin. Statement. Actual/Actual Comparison screen, enter the required data.


Currency type 10 Company Code Currency

Company <company code> Best Practice


© SAP AG of 17


Code

FIS Annual Rep.Struc

BPNG Accounting balance sheet and P&L statement

Ledger

0L

In this field you enter the ledger group you will get the balance sheet for. In our case we only have ONE ledger group. You do not have to enter anything.

Reporting Year Comparison Year and Comparison Period (from – to)

Example:

Reporting Year

2008 1-12

Comparison Year

2009 1-12

In these fields, specify the year and period and the comparison year and period for which you want to create the report.

Output Type Classic Drill Down

Report You can personalize your report using the ABAP List Viewer. For further settings, see the mySAP ERP documentation.

3. Choose Execute.

Result

A financial statement version contains items that are particularly relevant to the financial statement report and general ledger information system.

The report for creating balance sheets and P&L statements does not make any postings; it only calculates the balance sheet and P&L result and displays this in the balance sheet and P&L statement.

5.2 Cost of Sales Accounting - P&L Statements

Use

With standard reporting, the functional areas cannot be subdivided further according to accounts when the balance sheet is drawn up in accordance with the cost of sales accounting procedure without carrying out additional activities. Appropriate Report Painter reports have to be integrated here. Since the functional areas must be broken down according to accounts, Report Painter reports that provide this functionality are created here.

Prerequisites

You have already made the preparatory postings for the balance sheets and P&L statements and valuated the foreign currency balance sheet accounts and open items in foreign currencies. For more information, refer to the documentation on preparing balance sheets.

Procedure



SAP ECC menu Accounting Financial Accounting Special Purpose Ledger

Tools Report Painter Report Writer Report Group Execute


© SAP AG of 17

Transaction code GR55


Business role Finance Manager

(SAP_NBPR_FINACC-M)

Business role menu General Ledger Periodic Processing Reporting Execute Report Group

2. On the Execute Report Group: Initial Screen enter the required data.


Report Group YCOS Report Group: BP Cost of Sales

3. Choose Execute.

If more than one report is assigned to report group YCOS, select report YBCOS.

4. On the Selection. Values screen, enter the required data.


Fiscal Year Example: Reporting Year 2009

In these fields, specify the year and the comparison year (Fiscal year -1) for which you want to create the report.

Ledger 0L

Company Code <company code>

From Segment For example, 1000_A Enter segment range from

To Segment For example, 1000_C Enter segment range to

From Period Example: 1

To Period Example: 16

5. Choose Execute.

Assigning Report Interface to Report Painter Report

The following steps are to be executed only once (first time executing the report):

1. Activate interface maintenance function.

To get the function of report interface maintenance available you have to activate the expert mode.

Chose via the menu: Settings Options

On the following screen, activate the flag Expert mode.

2. Assign Report Painter Report to line item report.

3. Chose via the menu: Settings Report/report interface

4. On the next screen, choose Insert row.

5. On the next screen, choose Other Report Type.

6. On the next screen, double-click the entry RT – ABAP Report Program.


© SAP AG of 17

7. Insert in the program name field: FAGL_ACCOUNT_ITEMS_GL

8. Save your entry.

Result

The report is executed and can be used for further analysis.

6 Appendix

6.1 Reversal of Process Steps

Not relevant.

6.2 Used Forms

Not relevant