Blog

The IMG  menu path for all settlement configuration is SPRO • CONTROLLING • PRODUCT COST CONTROLLING • COST OBJECT CONTROLLING • PRODUCT COST BY PERIOD/ORDER/SA…

Variance calculation is carried out in several steps. You must differentiate between system configuration in Customizing, which is a prerequisite for variance c…

The IMG menu path for all WIP configuration is SPRO • CONTROLLING  • PRODUCT COST CONTROLLING • COST   OBJECT   CONTROLLING • PRODUCT   COST   BY   PERIOD/ORDER…

 Actual cost debits and credits occur throughout the month in different COST CENTERS throughout the company: production, overhead, and service cost centers. In …

Month-end processing is really where the bulk of the work exists for finance. Throughout a given period, actual expenses are recorded in SAP as purchases are ma…

CO Integration With Other Modules Supply chain integration Supply chain, or logistics, is probably the most integrated modules with controlling. Almost every m…

Actual costs are determined through purchase prices, actual expenses, and confirmed production quantities. Actual costs are compared to standard costs through v…

Transaction CK40N is used to execute costing runs, analyze results, and mark and release costs. COST estimates can be created individually in transaction CK11N,…

PRODUCT COST estimates are the calculation of the cost of a material based on settings from the material master and additional master data such as BOM, routing …

Define price control for material types You have the option to configure a default price control by material type in configuration. In this screen, you can als…

Costing 1 view The Costing 1 view contains many fields relevant to COST estimates, including general data and quantity structure data (see Figure 3.8). Figur…

The COSTING related material master views consist of two accounting views and two costing views. These four views are plant-specific and are required for valued…

The MRP 1 view is the first of 4 MRP views on the material master. The MRP 1 VIEW is a place holder for defining the Planning methods and lot sizing procedures …

The Basic data 1 and 2 views are required for all material types and are global settings like material type. The Basic data 1 view contains fields of interest t…

Material Master In order to track inventory and allow postings for purchase and produced products in SAP, we need to create material masters to identify unique…

Activity Rates define or rather calculate the cost of performing an activity type. The goal of activity rate calculation is to calculate plan activity rates for…

ALLOCATIONS enable you to periodically allocate amounts and quantities from sender objects to receiver objects. The two main types of allocations are assessment…

There is no fixed sequence for cost center planning. However, SAP recommends certain guidelines. The following sequence is just one possible planning method. CO…

Statistical key figures provide information on non-monetary data for COST CENTERS (i.e. KWH, sales dollars, cubes shipped). Statistical key figures can be used …

ACTIVITY TYPES are used to indicate measurable production quantities for product costing. In other words, activity types are used to determine the quantity-base…

COST ELEMENTS play a very important role in the reconciliation/alignment of costs and postings between Financial Accounting (FI) and Management Accounting/ Cont…

Cost centers Cost centers are used to manage the expenses of departments and provide decision-making data for management. This requires that all costs be assig…

Product Cost Planning The beginning of the product cost planning cycle is cost center planning. The goal of cost center planning is to create activity rates us…

Introduction Product costing is often regarded as the most challenging module in SAP. While this reputation builds a certain mystique around the topic, I promi…

Settlement to CO-PA What can you settle in CO-PA? Although there are no limits here, this segment will restrict to four options from different modules: 1.SETTL…