plant closing

EHP4 for SAP ERP 6.0

June 2009

English

Period End Closing “General” Plant (181)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Period End Closing “General” Plant (181): BPD

Copyright

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Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

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Cross-references to other documentation.

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

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Contents

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

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

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

2.2 Preliminary Steps............................................................................................................5

2.3 Roles............................................................................................................................... 5

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

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

4.1 Running Assessment Cycle for Quality Costs.................................................................8

4.2 Recording Purchase-Order Related AP Transactions.....................................................9

4.3 Releasing Blocked Invoices...........................................................................................10

4.4 Ensuring Inventory Movements are Complete – Goods Issue.......................................11

4.5 Ensuring Goods Movements are Complete...................................................................12

4.6 Ensuring Production Transactions are Complete..........................................................12

4.7 Opening New MM Period..............................................................................................13

4.8 Actual Overheads Calculation Production Order...........................................................14

4.9 Period-End Closing With Partially Delivered Production Orders....................................16

4.10 Calculation of Work in Progress (WIP)......................................................................17

4.11 Reviewing WIP Calculations......................................................................................18

4.12 Production and Process Order Variance Calculation.................................................20

4.13 Product Cost Collector Variance Calculation.............................................................21

4.14 Settling Variances......................................................................................................22

4.15 Data Collection for Summarization Hierarchy............................................................23

4.16 Analyzing Variances..................................................................................................24

4.17 Closing Completed Production Orders......................................................................26

4.18 Production Order Information System........................................................................27

4.19 Performing Actual Assessment to CO-PA..................................................................28

4.20 Running Profitability Report.......................................................................................29

5 Appendix.............................................................................................................................. 31

5.1 Reversal of Process Steps............................................................................................31

5.2 Reversal of Process Steps............................................................................................31

5.3 Used Forms...................................................................................................................34

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Period End Closing “General” Plant

1 PurposeThe Plant/Central closing process is done to make sure that all financial postings are made to represent the plant(s) activity for the period. Daily activity in the plant is posting various financial documents into the general ledger and cost-controlling module. This process makes sure that all activity in the plant is shown correctly, and that no financial postings are missing. Some data (total stock value, total stock, valuation class, price control indicator, and price unit) are managed by period. For these values, and goods movements, to be posted to the correct period, the period must be set whenever a new period starts. Management reporting needs to receive plant information with reference to variances, WIP, and scrap to allow for the correct reporting of these figures. The production/process orders that are no longer active need to be flagged as closed so that future postings will not be allowed. This process ends by flowing into the Central Closing process that finishes the financial reporting of the company.

This BBP covers the period end closing for product cost controlling by period and product cost controlling by order. The procedures for Product Cost by Order are the same regardless of whether a manufacturer uses process orders or production orders. When differences occur, a

special note makes clarification.

2 Prerequisites

2.1 Master DataYou have entered the master data required to go through the procedures of this scenario, especially allocation cycles and new actual overhead percentages (if necessary).

2.2 Preliminary StepsTo run through this scenario, the following business conditions have to be fulfilled:

- purchase order invoices have to be posted

- blocked purchase order invoices have to be released

- all goods shipped in previous periods have been posted

- all goods movements have been posted

- all production confirmations have been posted.

2.3 Roles

UseThe 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.

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

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Business role Technical name Process step

Employee (Professional User)

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

Enterprise Controller

SAP_NBPR_CONTROLLER-M Run Assessment Cycle for Quality Costs

Accounts Payable Accountant

SAP_NBPR_AP_CLERK-S Record Purchase-order related Accounts Payable Transactions

Release Blocked Invoices

Shop Floor Specialist

SAP_NBPR_SHOPFLOOR-S Ensure Good Movements are complete


SAP_NBPR_SHOPFLOOR-S Ensure Production Transactions are complete

General Ledger Accountant

SAP_NBPR_FINACC-S Open New MM Period

Product Cost Controller

SAP_NBPR_PRDCOST_CONTRLR-S

Actual Overheads Calculation Production Order

Period-End Closing With Partially Delivered Production Orders

Calculation of Work in Process

Review WIP Calculations

Production and Process Order Variance Calculation

Product Cost Collector Variance Calculation

Settle Variances

Data Collection for Summarization

Analyze Variances

Production Planner

SAP_NBPR_PRODPLANNER-S Close Completed Production Orders

Production Order Information System


SAP_NBPR_CONTROLLER-M Perform Actual Assessment to CO-PA

Run Profitability Report

Run assessment cycle for quality costs

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3 Process Overview Table

Process step External process reference

Business condition

Business role

Trans-action code

Expected results



KSU5 Quality costs are distributed to production cost centers.

Record Purchase-Order-Related AP Transactions

PO invoices need to be posted before month-end


MIRO Vendor liability is posted with GR/IR, PPV and/or Small Difference off-set posting

Release Blocked Invoices


MRBR The blocked invoices are released

Ensure Inventory Movements are Complete

See 203 Sales: Period End Closing Operations



All goods issues shipped in previous period are posted. (see transaction VL10C)

Ensure Inventory Movements are Complete


COGI All goods movements are posted.

Ensure Production Transactions are Complete

. Shop Floor Specialist

CO16N .

Open New MM Period

General Ledger Accountant

MMPV MM values for previous month are closed. New MM period is open for postings.

Actual Overheads Calculation Prod. Order


CO43 Actual overheads calculation for prod. orders are posted

Period-End-Closing with Partially Delivered Production Orders

Preliminary settlement for co-products


CO8A Cost are transferred from production header to items

WIP Calculation Product Cost Controller

KKAO WIP calculations are saved for production orders

Review WIP Calculation

Product Cost

KKAQ WIP calculations are reviewed.

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Process step External process reference

Business condition

Business role

Trans-action code

Expected results

Controller



KKS1 Variances are calculated for the period for settlement later in the process.

Settle Variances Product Cost Controller

CO88 Variances are posted to zero orders and move variances to CO-PA. PP orders total to WIP, calculated earlier

Data collection for summarization hierarchy


KKRC Data summarized

Analyze variances Product Cost Controller

KKB_HOE Variances are analyzed with a set of reports

Close Completed Production Orders

Production Planner

CO02 Closed production orders are marked so that postings to them are no longer possible

Product Order Information System

Production Planner

CO0IS Notification from production that outside vendor process is required

Perform Actual Assessment to CO-PA


KEU5 CO-PA product line reporting has PPV, misc. manufacturing and scrap values based on allocation rules defined by the business.

Run Profitability report


KE30



KSU5 Quality costs are distributed to production cost centers.

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4 Process Steps

4.1 Running Assessment Cycle for Quality Costs

UseQuality costs are collected on cost center 1401. They are to be assessed to the manufacturing cost centers.

Prerequisites Actual assessment cycle Y_A010 to be defined with sender cost center 1401. The assessment is based on fixed percentages which are posted to cost centers 1301and 1302

The same transaction can be used to adopt fixed percentages to customer specific requirements. The percentages delivered with SAP Best Practices are examples only.

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 Center Accounting Period end Closing Single Functions Allocations Assessment

Transaction code KSU5

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 Period End Closing Execute Actual Assessment Cycle for Cost Centers

2. On the Execute Actual Assessment screen, make the following entries:

Field name Description User action and values Comment

Periods Two fields:

Period From

Period To

Enter one number in each field, for example, from 1 to 12

Month number (Jan =1, Dec=12)

Only fill out the first field. Do not enter a value in the second field.

Year Current fiscal year Actual year

Test run Use test runs until the run is error-free

Detailed lists X

Cycle Enter the code of the cycle

Execute

Result The actual quality costs are distributed to production cost centers.

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4.2 Recording Purchase-Order Related AP Transactions

UseIn this activity, you record purchase-order related accounts payable transactions.

Procedure



SAP ECC menu Logistics Materials Management Logistics Invoice Verification Document Entry Enter Invoice

Transaction code MIRO


Business role Accounts Payable Accountant (SAP_NBPR_AP_CLERK-S )

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

2. On the Enter Incoming Invoice screen, make the following entries:


Transaction Invoice

Invoice Date <date>

Reference Invoice number

Posting Date <date>

Amount <amount>

Currency EUR

Calculate Tax Selected

PO Number <purchase order number>

3. Choose Enter.

4. Review the displayed line items. Deactivate any line items that are not part of the invoice. If necessary, make amount/quantity changes to those lines that are part of the invoice.

5. Choose Enter.

6. Choose Post.

Result The Vendor liability is posted with GR/IR, PPV and/or small difference off-set posting.

Debited Accounts Credited Accounts

GR/IR Account Vendor

PPV (if applicable) PPV

Small Difference (if applicable) Small Difference (if applicable)

Use Tax (if applicable)

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4.3 Releasing Blocked Invoices

UseThis activity will review and release blocked invoices.

Procedure



SAP ECC menu Logistics Materials Management Logistic Invoice Verification Further Processing Release Blocked Invoices

Transaction code MRBR


Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK-S)

Business role menu Accounts Payable Posting Invoices Release Blocked Invoice w/ PO Reference

2. In the Company code field, enter 1000 and choose Execute.

3. On the Release blocked invoices screen, choose the invoices to be released, and then choose Release.

4. Choose Save.

If the invoice is not authorized, resolve any issues, then re-run this transaction. Otherwise, go to the next step.

ResultThe invoice(s) are released for payment.

4.4 Ensuring Inventory Movements are Complete – Goods Issue

UseIn this activity, you ensure that inventory movements are complete.

Procedure

To execute this activity, run the Sales: Period End Closing Operations (203) scenario using the master data from this document.

Example

Shipping Point/Receiving Pt Deliv Creation Date Code

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1000 <first day of period to be closed to last day of period to be closed>

ResultAll goods issues that were shipped in the previous period have been posted into the system.


COGS Inventory

4.5 Ensuring Goods Movements are Complete

UseIn this activity, you ensure Good movements are complete.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Confirmation Reprocessing Goods Movements

Transaction code COGI


Business role Shop Floor Specialist

(SAP_NBPR_SHOPFLOOR-S)

Business role menu Shop Floor Discrete Goods Movement Postprocess Faulty Goods Movements

2. On the Automatic Goods Movements: Error Handling screen, in the Plant field, enter 1000 and choose Execute.

3. The Automatic movements with Errors: Aggregated Records report shows items that need to be reviewed and processed. Reprocess any items that are displayed in the list.

ResultAll goods movements have been posted.


COGS Inventory

4.6 Ensuring Production Transactions are Complete

UseIn this activity, you ensure production transactions are complete.

Procedure

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SAP ECC menu Logistics Production Shop Floor Control Confirmation Reprocessing Confirmations

Transaction code CO16N


Business role Shop Floor Specialist

(SAP_NBPR_SHOPFLOOR-S)

Business role menu Shop Floor Discrete Confirmation Reprocessing Confirmation

2. On the Postprocessing Incorrect Confirmations screen, in the Origin field, enter 6, and in the Plant field, enter 1000 choose Execute.

3. Reprocess any items that are displayed in the list.

ResultAll production confirmations have been posted.

4.7 Opening New MM Period

UseStock and valuation data are managed by period. For values and goods movement to be posted to the correct period, the period must be set whenever a new period starts.

This activity should be run after all users have logged off. It cannot be run while anyone is handling a material. If it has not been run, no materials movements can be done in the new period.

Prerequisites

The previous three steps must be completed before you can execute this step.

Procedure



SAP ECC menu Logistics Production Master Data Material Master Other Close Period

Transaction code MMPV


Business role General Ledger Accountant

(SAP_NBPR_FINACC-S)

Business role menu General Ledger Periodic Processing Closing Periods Close

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Period for Material Master

2. On the Close Period for Material Master Records screen, make the following entries:


From company code

1000

To company code

1000

Next period <period to open>

Next fiscal year

<current fiscal year>

Check and close period

Selected Use Check period only and Close period only if you want to do this activity in two steps instead of one.

3. Choose Execute.

ResultMM values are closed for the previous month. The new MM period is open for postings.

4.8 Actual Overheads Calculation Production Order

UseIn this activity, you post the actual overheads to production orders / product cost collectors.

Prerequisites

If necessary, update the percentages of actual overheads to be calculated.

An overhead rate specifies the conditions under which overhead is applied to an object. In this IMG activity you define percentage overhead rates.

Percentage overhead rates are recommended if, for example, you want to calculate quantity-independent overhead on costs for particular cost elements posted on a production order or product cost collector. Examples are overheads on material consumption and labor. Quantity-based overhead rates on the other hand, are calculated for each unit of measure of a cost element.

Overhead rate maintenance (actual percentage):



SAP ECC menu Accounting Controlling Product Cost Controlling Product Cost by Order Period-End Closing Current Settings Define Percentage Overhead Rate

Transaction code S_ALR_87008275

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sapevent:DOCU_LINK%5CGL:overhead_rate



Business role Product Cost Controller

(SAP_NBPR_PRDCOST_CONTRLR-S)

Business role menu Product Cost Controlling Product Cost Planning Change View Percentage Overhead

2. On the “Change view percentage overhead”: Overview screen, mark the percentage overhead you want to change.

3. On the “Change view “Details”: Overview screen, you can change the percentage of the rate or you can select the rate and choose copy as.

4. On the Change View “Details”: Overview of selected set screen, make the following entries:

Field name Description User actions and values Comment

Valid from <the new valid date from>

To <the new valid dat to>

CO Area 1000

Overhead type <1> for actual overhead rate

Plant 1000

Percentage <percentage of overhead>

5. Choose Save.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Period-End Closing Overhead Calculation Collective Processing

Transaction code CO43




Business role menu Product Cost Controlling Periodic Processing Overhead Calculation Actual Overhead Calulation: Production/Process Orders

2. On the actual overhead calculation: Production//Process Orders screen, make the following entries:


Plant 1000

Period <last period>

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Fiscal Year <actual fiscal year>

Test run Deselected

Detail lists Selected

3. Choose Execute.

ResultThe actual overheads on production orders are posted.

4.9 Period-End Closing With Partially Delivered Production Orders

UseAs the process order is not completed by the end of the period, it is necessary to calculate the actual WIP value and settle the amounts for information purposes to Financial Accounting. In addition, process costs and overhead rates must be allocated to the order prior to the WIP calculation. You have been asked to perform the period-end closing tasks for your process order. Because this is a joint production order, you will need to distribute the actual costs from the order header to the order items. This is necessary to support the calculation of WIP for the individual order items.

Preliminary settlement for co-product

This step is applied just in case of process orders.

If co-products are produced in a manufacturing order, the actual costs are collected on the order header. At the end of the period, these costs can be distributed to the order items according to equivalences. This enables you to charge each co-product with its share of the actual costs. You use the function Preliminary Settlement for Co-Products, Rework for this.

PrerequisitesCheck the equivalence numbers in the apportionment structure. In the Preliminary Settlement for Co-Products you can distribute the overall costs for the order to the co-products. To do this you have to define an apportionment structure. In this apportionment structure, you specify equivalences that are used to distribute the actual costs posted to the order header.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Period-End Processing Preliminary Settlement for Co-Products, Rework Collective Processing (CO8A)

Transaction code CO8A




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Business role menu Product Cost Controlling Periodic Processing Settlement Presett. Co-Products, Postprocessing

2. On the Preliminary Settlement for Co-Products screen, make the following entries:


Plant 1000

With Production Orders, Process Orders

Selected

Settlement period Closed period

Fiscal year <current year>

Processing period: Test run

Unchecked

Processing period: Detail list

Checked

Processing period: Background Processing

Checked (if volume of data is big)

3. Choose Execute. The system generates a report of settlements calculations for the selected plant production orders

Result The costs are transferred from order header to items. The individual cost elements that debited the process order are listed as the senders. The settlement receivers should list the order items (co-products) as the receivers for each individual sending cost element. The value is split according to the apportionment structure.

4.10 Calculation of Work in Progress (WIP)

UseIn this activity, you calculate work in progress (WIP). This step is executed in the same manner for partially delivered production orders as for (totally) delivered production orders

Procedure



SAP ECC menu Logistics Production Shop Floor Control Period-End Processing Work in Process Collective Processing Determine

Transaction code KKAO




Business role menu Product Cost Controlling Periodic Processing Work in Process Calcuate Work in Process: Collective Processing

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2. On the Calculate Work In Process: Collective Processing screen, make the following entries:


Plant 1000

With Production Orders, Process Orders, Product Cost Collection

Selected Do not select Product Cost Collectors if you do not have at least one point of delivery in your routings.

WIP to period Closed period

Fiscal year <current year>

RA Version 0

Test run Deselected To review WIP without calculation, select this checkbox.

Log Information Messages Selected

Output object list Selected

Hide orders for which WIP=0

Selected

3. Choose Execute. The system generates a report of WIP calculations for the selected plant production orders.

Do not select Product Cost Collectors for WIP calculation if you do not have at least one point of delivery in your routings.

ResultWIP Calculations are saved for production orders.

4.11 Reviewing WIP Calculations

UseIn this activity, you review the WIP calculation.

After running this activity:

Option A: If the WIP and Variance Report is accurate, go to next step.

Option B: If the WIP and Variance report is not accurate, correct any variance or WIP issues and re-run steps 1 and the next which follows.

Prerequisites Work in progress calculation has been executed.

Procedure

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SAP ECC menu Logistics Production Shop Floor Control Period-End Processing Work in Process Collective Processing Display

Transaction code KKAQ




Business role menu Product Cost Controlling Periodic Processing Work in Process Display Work in Process: Collective Processing

2. On the Display Work In Process: Collective Processing screen, make the following entries:


Plant 1000

With Production Orders, Product Cost Collectors, Process Orders

Selected

WIP to period <closed period>

Fiscal year <current fiscal year>

RA Version 0

Hide orders for which WIP=0

Selected

3. Choose Execute. The system generates a report of WIP calculations for the selected plant production orders, arranged by order and totaled by order type.

You can also use report S_ALR_87013127, KKBC_ORD w/variant 1SAP02 as follows:

4. Review the posted actual costs that were changed by the distribution to the co-products. Access the transaction choosing one of the following navigation options:


SAP ECC menu Accounting Controlling Product Cost Controlling Cost Object Controlling Product Cost by Order Information System Reports for Product Cost by Order Detailed Reports For Orders

Transaction code KKBC_ORD




Business role menu Product Cost Controlling Reporting Production and Process Orders Analyze Order

5. Choose (NWBC: More ) Settings Order Items On/Off.

6. Select Layouts and select layout 1SAP02 (cost trend).

7. Enter your order number and order item 1.

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8. Choose Execute. The individual order items now have actual costs.

ResultThe WIP calculation is reviewed.

4.12 Production and Process Order Variance Calculation

UseIn this activity, you calculate production and process order variances.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Period-End Processing Variances Collective Processing

Transaction code KKS1




Business role menu Product Cost Controlling Periodic Processing Variances Variance Calculation (Production Orders)

2. On the Variance Calculation: Initial screen, make the following entries:


Plant 1000

With production orders Selected

With process orders Selected

Period <period to close>

Fiscal year <current fiscal year>

3. From the menu, choose (NWBC: More ) Extras Set Target Cost Versions.

4. Select version 0, then make the following entries:


Selected Target Cost Vars

Selected

Test run Deselected To review variances, select this checkbox.

Detailed list Selected.

5. Choose Execute. The system generates a Variance Calculation: List report showing the variances, by order, calculated for the period.

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Result Production order variances are calculated for the period so they can be settled later in the process.

4.13 Product Cost Collector Variance Calculation

UseThis activity calculates the variances for the product cost collector.

Procedure



SAP ECC menu Logistics Production Repetitive Manufacturing Environment Period-end Closing for Prod. Cost Collector Variances Collective Processing

Transaction code KKS5




Business role menu Product Cost Controlling Periodic Processing Variances Variance Calculation (Cost Collectors)

2. On the Variance Calculation: Initial screen, make the following entries:


Plant 1000

W/Product Cost Collectors

Selected

Period <period to close>

Fiscal years <current fiscal year>

3. From the menu, choose (NWBC: More ) Extras Set Target Cost Versions.

4. Select version 0, then make the following entries:


Selected Target Cost Vars

Selected

Test run Deselected Run with Test Run checked to review variances. Ignore errors 206 and 213 for ETO orders that will settle WBS. Ignore error 011 for status

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DLV/TECO.

Detailed list Selected

5. Choose Execute. The system generates a Variance Calculation: List report showing the variances, by cost collector, calculated for the period.

Result Cost Collector variances are calculated for the period so they can be settled later in the process.

4.14 Settling Variances

UseIn this step, you settle the production variances to Financial Accounting and Profitability Analysis.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Period-End Processing Settlement Collective Processing





Business role menu Product Cost Controlling Periodic Processing Settlement Actual Settlment: Production/Process Orders

2. On the Actual Settlement screen, make the following entries:


Plant 1000

With Production Orders Selected

With Process Orders Selected

W/Product Cost Collectors

Selected

Settlement Period <period to settle>

Fiscal Year <current fiscal year>

Processing Type Automatic

Test Run Deselected Run with 'Test Run' checked to review variances before posting

Detailed List Selected

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3. Choose Execute.

ResultFor Partially Delivered Production Order the WIP accrual to FI does not credit the process order. The WIP balances are stored in RA cost elements, which will not update the controlling object. This can be verified by displaying the sender and receiver for the settlement.

Select one of the process order items. Select Accounting documents. From the list of accounting documents, choose Accounting document. This is the WIP accrual posting in FI.

Cost collector variances are posted to zero orders and move variances to CO-PA. PP orders total to WIP calculated in the Review WIP calculation step. You can use transaction S_ALR_87012993 to determine that the order group PP, balance should equal WIP from the Review WIP Calculation step.


SAP ECC menu Accounting Controlling Internal Orders Information System Reports for Internal Orders Plan/Actual Comparisons Orders: Actual/Plan/Variance

Transaction code S_ALR_87012993




Business role menu Overhead Cost Controlling Orders Orders: Actual/Plan/Variance

Negative variances:


Inventory Change G/L with production order/cost collector

Gain/Lost G/L with CO-PA value fields (Labor Variance, Overhead Variance, Material Variance)

Positive variances:


Gain/Lost G/L with CO-PA value fields (Labor Variance, Overhead Variance, Material Variance)

Inventory Change G/L with production order/cost collector

4.15 Data Collection for Summarization Hierarchy

UseSAP system offers several reports for analyzing production data. To facilitate reporting, we recommend using a hierarchy and drilling down to lower levels.

Procedure

1. First, you have to start a data collection for the summarization hierarchy YBMF0001. Access the transaction choosing one of the following navigation options:


SAP ECC menu Controlling Product Cost Controlling Cost Object Controlling Product Cost by Order Information System Tools Data

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Collection For Summarization Hierarchy

Transaction code KKRC




Business role menu Product Cost Controlling Periodic Processing Settlement Summarization: CO Object

2. Enter the following information:


Hierarchy <actual hierachy> for example, YBMF0001

From fiscal year <current fiscal year>

To fiscal year <current fiscal year>

From period <period for data collection>

To period <period for data collection>

Background processing

X Flag the field

No entries are necessary for “Parallel Processing”.

3. Choose Execute.

4. In the dialog box for Background Processing, flag Start Immediately and choose Confirm.

Result The system has summarized primary and secondary costs, variances and work in progress data on the different levels: controlling area, company code, plant, order type, material number, order/product cost collector.

4.16 Analyzing Variances

UseSAP system offers several reports for analyzing production variances. We recommend using the summarization hierarchy and the line item report for the single order.

Prerequisites Data collection for summarization hierarchy has been executed.

Procedure



SAP ECC menu Controlling Product Cost Controlling Cost Object Controlling

© SAP AG of 34


Product Cost by Order Information System Reports for Product Cost by Order Summarized Analysis With Defined Summarization Hierarchy

Transaction code KKBC_HOE




Business role menu Product Cost Controlling Reporting Sales Orders Analyze Summarization Object

2. Enter the following information:


Hierarchy type CO Summarization for example, YBMF0001

Hierarchy <actual hierarchy>

Time Frame Flag limited

From period <period for data collection>

To Period <period for data collection>

Plan Version 0

3. Display the data for the hierarchy by choosing the second icon from the left (Overview).

4. You can add the columns of your report by choosing the second icon on the left-hand side of the screen. Choose Layout 1SAP02 Plan/Actual Comparison. You can analyze which products and which production orders had high variances.

5. If you want to see the variances on a particular order, double-click order number. The system opens the line item report.

6. In the line item report, you can create your own layout to analyze variances.

7. Choose Change Layout; sort from A to Z by clicking the Column Name. To analyze the production variances, mark the following columns and click the arrow to the left:

Input Price Variance

Input quantity variance

Remaining input variance

Remaining variance

Output Price Variance

Lot size variance

Output quantity variance

Resource-usage var.

Scrap variance

Mixed-price variance

© SAP AG of 34


Variance

8. Choose the Sort order header and take out the summarization at cost element level by clicking into the field.

9. Save your layout.

10. After analysis, you can go back to the main report and continue to check the variances on the other production orders.

Result You can analyze production variances on different levels down to the single production order.

4.17 Closing Completed Production Orders

UseIn this activity, you close the completed production orders.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Order Change



Business role Production Planner

(SAP_NBPR_PRODPLANNER-S)

Business role menu Production Shopfloor Control Production Order (homepage)

2. Only SAP NetWeaver Business Client (SAP NWBC): Enter search criteria and search for the order by pressing Apply. Mark the required line and choose Process Production Order Change Order.

3. On the Production Order Change: Initial screen, in the Order field, enter the order number to close.

The order must have the status Released (REL) or Technically completed (TECO). The order balance must be 0. There must not be any open purchase requisitions, purchase orders or commitments on the order. Confirmations are no longer possible.

4. On the Production Order Change: Header screen, from the menu, choose (NWBC: More ) Functions Restrict Processing Close.

5. From the menu, choose (NWBC: More ) Functions Deletion flag Activate.

6. Choose Save.

Result Closed production orders are marked in the system so that no more postings can be done.

© SAP AG of 34


4.18 Production Order Information System

UseThis activity will display all purchase requisitions linked to a production order. The purchase department needs to be informed by production that an outside vendor process is required.

This screen will show all purchase requisitions linked to a production order. This will allow the Purchasing Administrator/planner to see the workload for requisitions that require external processes. The production scheduler needs to inform the purchasing department when it is time to ship out the material. You should not create the purchase order before the material is at the external process operation in the production process. Any quantity changes on the production order will automatically update the requisition quantity until the requisition is converted into a purchase order.

PrerequisitesThe production scheduler may inform the purchasing department that they need to check requisitions that require external processes.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Information Systems Order Information Systems

Transaction code COOIS


Business role Production Planner

(SAP_NBPR_PRODPLANNER-S)

Business role menu Production Evaluations Reports Production Order Information System

2. Make the following entries:


List Purchase Requisitions

Layout 000000000001 - Standard

Production Orders Selected

Selection tab page

Production Plant 1000

MRP Controller 100

Production Order <Enter a Production Order number, if known>

3. Choose Execute (F8).

© SAP AG of 34


ResultProduction has notified the Purchasing Administrator that an outside vendor process is required.

Purchase Requisition number: _________

4.19 Performing Actual Assessment to CO-PA

UseYou execute actual assessments to transfer all costs from cost centers to Profitability Analysis.

PrerequisitesThe actual assessment cycles are set up.

Procedure



SAP ECC menu Controlling Profitability Analysis Actual Posting Period End Closing Transfer Cost Center Costs/Process Costs Assessment

Transaction code KEU5




Business role menu Profitability Analysis Transfer of Overhead Execute Actual Assessment Cycle for Profitability Analysis

2. If the system displays the Operating concern dialog box, enter your Operating Concern (for example, 10DE) and choose Continue.

3. Make the following entries:


Period <period to run>

Fiscal year <Current fiscal year>

Test run Deselected If you want to review variances before posting to CO-PA, select this checkbox.

Cycle YB02

Detailed list Selected

4. Choose Execute. The system displays a report of cost center transactions posted to CO-PA.

ResultThe costs are transferred to CO-PA.

© SAP AG of 34


4.20 Running Profitability Report

UseTo analyze your profitability data in drilldown reporting, there is a set of reports defined in the system.

Procedure



SAP ECC menu Accounting Controlling Profitability Analysis Information System Execute Report

Transaction code KE30




Business role menu Profitability Analysis Reporting Execute profitability report

2. There is a contribution margin report defined in the system. The report shows actual data, planned data and variances with drill-down possibility to the single customer, customer group, and country of the customer, production plant, product group, product and sales office.

Here is an overview of the reporting lines and key figures:

Key figures:

Sales quantityRevenueRev. for Exp/TravelCustomer DiscountMaterial discountQty discountPromotionFree GoodsOther DiscountsCash Discount Net Sales after Discounts Material CostsMaterial external PrCosts third partyLabor Costs variableTravel expencesManufact. costs variableOverhead costs variableContribution Margin I

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Labor Costs fixManufact. costs fixOverhead costs fixContribution Margin II VariancesScrap Contribution Margin III AdministrationSalesMarketingR&D Contribution Margin IV Non Operating IncomeNon Operating Expense P&L Before Taxes Taxes P/L After Taxes

3. You are still in transaction KE30


SAP ECC menu Accounting Controlling Profitability Analysis Information System Execute Report

Transaction code KE30




Business role menu Profitability Analysis Reporting Execute profitability report

4. If the system displays the Operating concern dialog box, enter your Operating Concern (for example, 10DE) and choose Continue.

5. To execute the report, double-click YB1040. On the selection screen for this report make the following entries and choose Execute:


From Fiscal year

<Current fiscal year>

To Fiscal year

<Current fiscal year>

From Period <period to run>

© SAP AG of 34


To Period <period to run> .

Version 0

6. Confirm the dialog box message. The report is executed and displayed for all customers, customer groups, and country of the customers, production plants, products and sales offices. If you want to display your sales to a single customer, choose customer in the navigation part of the report. The item customer moves to the right and a set of icons appears. When you choose the small arrows, you can move from customer to customer. When you choose the icon looking like a magnifying glass, you can choose any customer. When you choose the icon on the left-hand side of the customer, the characteristic customer goes back to the navigation part of the report. You can also choose more than one characteristic and display the figures for certain combinations of customer – product – country and so on.

7. Each time you choose a characteristic like customer, single customer and so on. The figures of the report change to display exactly the values for the characteristics chosen. The layout / reporting lines of the report are fixed.

Result The report is displayed using the characteristics you set (customer, product and so on.). You can store the displayed status of the report as frozen report data. You can submit the results to appropriate persons.

5 Appendix

5.1 Reversal of Process Steps

5.2 Reversal of Process StepsIn the following section, you can find the most common reversal steps, which you can take to reverse some of the activities described in this document.


Transaction code ( SAP GUI) KSU5

Reversal: Reverse actual assessment

Transaction code ( SAP GUI) KSU5



Business role menu Overhead Cost Controlling Period End Closing Execute Actual Assessment Cycle for Cost Centers

Comment Choose assessment - reverse

Record Purchase-Order-Related AP Transactions

Transaction code ( SAP GUI) MIRO

Reversal: Cancel invoice document

Transaction code ( SAP GUI) MR8M

© SAP AG of 34


Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK-S)

Business role menu Accounts Payable Posting Invoices select invoice (mark the required line) cancel document

Comment

Actual Overheads Calculation Prod. Order

Transaction code ( SAP GUI) CO43

Reversal: Reverse Actual Overheads Calculation Prod. Order


Business role Product Cost Controller (SAP_NBPR_PRDCOST_CONTRLR-S)

Business role menu Product Cost Controlling Periodic Processing Overhead Calculation Actual Overhead Calulation: Production/Process Orders

Comment Choose (NWBC: More… ) Overhead calculation Reverse

Period-End-Closing with Partially Delivered Production Orders

Preliminary settlement for co-products

Transaction code ( SAP GUI) CO8A

Reversal: Reverse Preliminary settlement for co-products

Transaction code ( SAP GUI) CO8A


Business role menu Product Cost Controlling Periodic Processing Settlement Presett. Co-Products, Postprocessing

Comment Choose (NWBC: More… ) preliminary settlement - reverse

WIP Calculation

Transaction code ( SAP GUI) KKAO

Reversal: Reverse WIP Calculation

Transaction code ( SAP GUI) KKAO


Business role menu Product Cost Controlling Periodic Processing Work in Process Calcuate Work in Process: Collective Processing

Comment Choose (NWBC: More… ) WIP calculation - reverse

© SAP AG of 34



Transaction code ( SAP GUI) KKS1

Reversal: Reverse Variance Calculation

Transaction code ( SAP GUI) KKS1


Business role menu Product Cost Controlling Periodic Processing Variances Variance Calculation (Production Orders)

Comment Choose (NWBC: More… ) variance calculation - reverse

Settle Variances


Reversal: Reverse Variances



Business role menu Product Cost Controlling Periodic Processing Settlement Actual Settlment: Production/Process Orders

Comment Choose settlement - reverse

Close Completed Production Orders


Reversal: Revoke Closing for Completed Production Orders


Business role Production Planner (SAP_NBPR_PRODPLANNER-S)

Business role menu Production Shopfloor Control Production Order select the production order and mark the required line process production order Change Order

Comment Choose functions – restrict processing – revoke close

Perform Actual Assessment to CO-PA

Transaction code ( SAP GUI) KEU5

Reversal: Reverse Actual Assessment to CO-PA

Transaction code ( SAP GUI) KEU5

Business role Enterprise Controller (SAP_NBPR_CONTROLLER-M)

Business role menu Profitability Analysis Transfer of Overhead Execute Actual Assessment Cycle for Profitability Analysis

Comment Choose assessment - reverse

© SAP AG of 34

plant closing

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