Procurement CCG

(Procurement Manager)

Raw Mtl Procurement Spares Procurement

CC (Supervisor) CC (Supervisor)

Canteen Costs Report

Canteen 1

Canteen 2

Canteen 3

TOTAL

Security Costs Report

Security 1

Security 2

Security 3
TOTAL

CC 'a'
(USD)
Planned Cost 300000 USD

Planned Output 1000 hrs

of Acty Type

Activity Price 300 USD/ hr

Maint. CC (Sender)

Assembly CC (Receiver CC)

VALIDATION

Prerequisite (Precondition)
If GL = 400500 (Tel. Exp.)

Check
CC = Admin. CC
Message
For GL 400500, only use Admin. CC!
There are two types of Reposting:

1) Line Item Reposting

Here, the amount to be allocated originally flows from a FI document.

The transaction will be linked to the original FI document from where the cost originates

2) Manual Reposting

Here, there is no link between the cost that is allocated and any FI document
The system does not even check whether the cost actually exists on the Sender before Reposting
In other words, system does not perform any Sender check.
This leads to the risk of having negative costs on the Sender CC.

10 HR

Activity Price Activity Price

(May)
150 USD/hr.

Cost allocated will be 1500

Posting will take place in June

DISTRIBUTION

A method used to allocate Primary Costs.

FI Doc.
Dr PCE 400700 (Electricity Exp. A/c)

Cr Cash

CO Doc. during Distribution

Dr PCE 400700 (Electricity Exp. A/c)

Cr PCE 400700 (Electricity Exp. A/c)

 FACTORY ABC [Cycle Run Group ABC]

CYCLE 1
Segment TELE

Segment CANTEEN

Segment ELEC

Segment MAINT

CYCLE 2

Segment RENT

Segment SECURITY

"iterate"

Segments within a Cycle will

ASSESSMENT

Canteen CC

PCE Canteen Supplies 4000

PCE Labour 1000
PCE Electricity 3500
PCE Cooking Gas 500
SCE Maint. Cost 1000

TOTAL 10000

Dr GL 700200 (Canteen Cost)

 Dr GL 700200 (Canteen Cost)

Dr GL 700200 (Canteen Cost)

Cr GL 700200 (Canteen Cost)

GL 700200
SCE of Category '42' (Assessment)

ALLOCATION STRUCTURE

Canteen CC

PCE Bread 600

PCE Milk 400
PCE Tea 700
PCE Eggs 200
PCE Sugar 100

Assessment CE (Breakfast) 2000

PCE Foodgrains 800

PCE Oil 700
PCE Vegetables 1000
PCE Meat 500

Assessment CE (Meals) 3000

CUMULATIVE ALLOCATION

Cost Center A is supposed to allocate costs (Ex: Telephone Costs) to Cost Centers B & C

January
SKF
Cost posted originally to CC A CC B 50
100
CC C 0

February
SKF
Cost posted originally to CC A CC B 50
100
CC C 0

March
 SKF
Cost posted originally to CC A CC B 0
2000
CC C 100

January to March
SKF
Cost posted originally to CC A CC B 100
2200
CC C 100

April
SKF
Cost posted originally to CC A CC B 20
1000
CC C 100

January to April
SKF
Cost posted originally to CC A CC B 120
3200
CC C 200

KSC1 Create Indirect Activity Allocation Cycle

KSC2 Change Indirect Activity Allocation Cycle

KSC5 Execute Indirect Activity Allocation Cycle

Suppose Maint CC is allocating MAIN00 hours activity type to Canteen CC

Can the Canteen CC allocate MAIN00 back to any other CCs?

No

Plan-Integrated Order

IO: 5010
PC: PC01

Planned Costs
IO 5010
 Fuel 3000

Maint. 2000

Intl. Order

Budget 10000

Actual Costs: 2000

Commitments 5000

AVAILABLE FUNDS 3000

Periodic Reposting is nothing but Line Item Reposting carried out at the end of a period.
Ex: Telephone Costs

June 28th
IO
Dr Telephone Exp. (PCE 400200) 300 USD 500100

Cr Cash 300 USD

IO
Dr Salaries Exp. (PCE 400200) 600 USD 500100

Cr Cash 600 USD

A) June 30th (Settlement w/o Settlement CE)

IO
Dr Salaries Exp. (PCE 400200) 600 USD

Cr Salaries Exp. (PCE 400200) 600 USD 500100

Dr Telephone Exp. (PCE 400200) 300 USD

Cr Telephone Exp. (PCE 400200) 300 USD 500100

B) June 30th (Settlement with Settlement CE)

Here, we will be using a Settlement Cost Element which is a SCE of Category '21'

IO
Dr Settlement CE (SCE of category 21) 900 USD

Cr Settlement CE (SCE of category 21) 900 USD 500100

Three levels of Planning on Internal Orders:

A) Overall Planning

B) Cost & Revenue Element Planning

C) Unit Costing

IO 1

Overall Costs

PCE Mtl. Costs

PCE Salaries

SCE Activity Cost

PCE Travel Exp.

No. of Employees

9501

1000

1000

10000 11501
 CEO (Co. Code A)
(CEO CCG)

Production CCG
(Production Manager)

Prodn. Assembly Section Packaging Section

CC (Supervisor) CC (Supervisor)
 A commitment refers to a Payment Obligation that is not yet reflected in Financial Accounting
Ex: Raising a Purchase Order on a vendor

(You show it as a Commitment in Controlling,but it will be reflected in FI only after you receive the goods)
[After we post the accounting entry, the Commitment will be automatically deleted from CO]

Commitments are very useful for planning your future Cash Flows

CO AREA [1:n]
(Group Currency: USD)

Co. Code 1 Co. Code 2 Co. Code 3

(USD) (EUR) (INR)

CC 'b' CC 'e' CC 'g'

(USD) (EUR) (INR)

No Flexibility for choosing Cost Center Currency,

which should be the same as Co. Code currency
Table name for the Universal Journal:

In S/4 HANA, it is mandatory to link every Cost Element to a GL A/c

Cost Elements are used as carriers for carrying costs from FI to CO, and from one CC to another CC.

There are two types of Cost Elements:

A) PRIMARY COST ELEMENTS

B) SECONDARY COST ELEMENTS

Maint. CC is providing 3 hours of maint. Services to Canteen CC

Activity Price: 300

(Cost allocated per unit of Activity Type)

Maint. cost to be allocated:

Secondary Cost Element:

Accounting Entry (during Activity Allocation)

 Dr 90639300

Cr 90639300

Receiver CC should be debited

Sender CC should be credited
The same GL (corresponding to Secondary Cost Element of Category 43) will be debited as well as cre
This GL will be picked up from the Activity Type master

Accounting Entry for primary costs

Dr Salaries Exp. A/c

Cr Cash or Bank A/c

nt. CC (Sender)

embly CC (Receiver CC)

Maint. CC

Total Output of Maint. Hrs. 800

Allocated to Assembly CC 150

Allocated to Packaging CC 250

Allocated to Canteen CC 400

Category 4 example: Machine Hours which is not allocated to other cost centers.
Instead it is used to produce SFG or FG

Cost Center A

Person Responsible:
(Time-based Master
Data field)

Cost Center Group C3001

(this is time-independent)

All the old costs as well as current costs and future costs will all be transferred to the new Cost Cente

Std. Hierarchy B00

Historical Hierarchy B00.2021

SUBSTITUTION

Prerequisite (Precondition)
If GL = 400500 (Tel. Exp.)

Replacement
CC = Admin. CC

EVENT BASED POSTINGS

Postings automatically reflected in CO based on some event or transaction that takes place in anothe

Ex: GL postings in FI, Billing in SD, Goods Receipt in MM, etc.

INTERNAL ORDER refers to an individual object (Ex: Truck, Telephone, PC, etc.) or an Event (Ex: Sales
Exhibition, etc.) for which you want to report costs separately.

Real costs can be allocated further; statiscal costs cannot be allocated further. Statistical costs are on

Dr Travel Exp. 100 USD

Cr Cash 100 USD

Note: You cannot have two real postings of the same expense

Dr Travel Exp. 100 USD

Cr Cash 100 USD

Dr Travel Exp. 100 USD

Cr Cash 100 USD

Dr Travel Exp. 100 USD

Cr Cash 100 USD

Note: It is not possible to only post a statistical cost without a real posting
However we can post only a real cost without a statistical posting.

All postings to Profit Center are statistical postings.

Real postings of costs will either go to cost center or to internal order.
Real postings of revenues will either go to CO-PA or to the Sales Order

Posting to multiple cost centers or multiple internal orders in the same line item is not permitted

In case you post any revenues to a cost center, they will always be posted as statistical revenues

Enduser Displays Report

(through Fiori Interface)
Virtual Data Model
(used to create)
Persistent Data Model

CDS View (in ABAP layer)

(generates during run-time)
SQL View
(fetches data from)
Database

CC A is allocating 300 USD to CC B using Reposting

Dr Expense GL 300 USD

Dr Expense GL -300 USD

 Posting Date: June 23rd Valuation Date: May 15th

Activity Price
(June)
200 USD/hr.

USD

CC
7000 USD CC Admin

7000 USD

CC
3000 USD CC Consulting

3000 USD CC Admin

 FACTORY XYZ [Cycle Run Group XYZ]

CYCLE 1X

CYCLE 2X

--> run cyclically

ments within a Cycle will iterate; but Cycles do not iterate

CC No. of Employees (SKF)

Production CC 500

Admin. CC 100

Maint. CC 400

CC
5000 Production CC
 1000 Admin. CC

4000 Maint. CC

10000 Canteen CC

Assignment X

Assignment Y

s) to Cost Centers B & C based on the ratio of SKF (Telephone minutes).

Cost Allocated
100

Cost Allocated
100

0
 Total Cost to be Allocated Cost already posted Cost allocated (Cumul.)
1100 200 900

1100 0 1100

Total Cost to be Allocated Cost already posted Cost allocated (Cumul.)

1200 1100 100

2000 1100 900

Planned Costs
PC01
Fuel

Maint.

CC
CC A

CC A
 CC
CC A

2021

1500

5000

2000

3000 [3hrs. Of activity consumed X Acty Price of 1000]

3000

14500

of Employees 10 Employees (SKF Plng.)

Std. Hierarchy '0001'

CEO (Co. Code B)

(CEO CCG)

FACTORY MANAGER FACTORY MANAGER

(Factory 1 CCG) (Factory 2 CCG)

Admin. CCG
(Administration Manager)

Paintshop Canteen CC Security CC Gardening CC

CC (Supervisor) (Supervisor) (Supervisor) (Supervisor)

ALTERNATIVE HIER. - CANTEENS

All Canteens CCG

Canteen 1 CC Canteen 2 CC Canteen 3 CC

ALTERNATIVE HIER. - SECURITY

All Security CCG

Security 1 CC Security 2 CC Security 3 CC

 nancial Accounting

nly after you receive the goods)

y deleted from CO]

CO AREA [1:1]
(GBP)

Co. Code 2
(GBP)

CC 'h' CC 'e'
(INR) (JPY)

Flexibility exists to choose a

different currency for Cost Center
 ACDOCA

m one CC to another CC.

Used to represent external costs, that is costs coming from outside your org.
(It involves making payments to vendors for raw materials, salaries to employees, electricity bills, etc.)

Used to represent internal costs, that is costs originating within your org.
Ex: Cost of Meals, Maintenance Services, IT Services, etc.

USD/hr. This can be either entered manually, or can be automatically determined

based on planned costs and planned output

900 USD

90639300

CC
 900 USD Canteen CC

900 USD Maint. CC

gory 43) will be debited as well as credited

CC
400 USD Assembly CC

400 USD

Category 2

hrs. Indirect determination

hrs. automatic

hrs. automatic

hrs. automatic
 01.01.2021 01.07.2021 01.01.2022
to 30.06.2021 to 31.12.2021 to 31.12.9999

Aarti Shreya Aarti

be transferred to the new Cost Center Group.

T-code: OKB9

Defining Default Account Assignment

 ransaction that takes place in another module.

hone, PC, etc.) or an Event (Ex: Sales Promotion campaign,

ocated further. Statistical costs are only used for reporting.

CC Intl. Order
CC A RO

Real posting will go to RO;

Statistical cost will be posted to CC A

CC Intl. Order
CC A StatO

Real posting will go to CC A;

Statistical cost will be posted to StatO

CC Intl. Order
CC A

Real posting will go to CC A; there is no statistical posting

CC Intl. Order
RO
 Real posting will go to RO; there is no statistical posting

e same line item is not permitted

be posted as statistical revenues

CC
(Receiver) CC B

(Sender) CC A
YZ [Cycle Run Group XYZ]

Segment TELE

Segment CANTEEN

Segment ELEC

Segment MAINT

Segment RENT

Segment SECURITY
ted (Cumul.)

ted (Cumul.)
Gardening CC
(Supervisor)

Canteen 3 CC

Security 3 CC
city bills, etc.)
Example of a Market Segment

Market Segment A Market Segment B

Characteristic Characteristic Value Characteristic Value

Product : Coca Cola Coca Cola

City: Delhi Bombay

Channel: Cinema Halls Restaurants

Profit Center

Customer Group

Division

In the above example, Product, City & Channel form Characteristics.

Each combination of Characteristic Values is called a Market Segment.

CO-PA implies Controlling - Profitability Analysis

In CO-PA, we generate Profitability Reports (with data on Sales, Contribution, Operating Profit, etc.) for each Ma
This will help us better focus our marketing efforts on those Market Segments which are giving us high profits o

In CO-PA, all the Market Segments are defined under an Operating Concern.
Operating Concern includes the list of all the Characteristics used by an org.
A Corporate Group typically uses only one Operating Concern, which represents the market served by the org. g

Operating Concern comes above your Controlling Area.

Multiple CO Areas can be assigned under one Operating Concern.

Ledger is a book wherein we post accounting transactions.

We can maintain different ledgers for posting transactions according to different Accounting Principles.

Ledgers are defined at Client level.

A given Ledger can be used by multiple co. codes across several countries.

Every Accounting Principle is assigned to a Ledger

Organisations follow one of the two approaches:

A) Parallel Ledger approach
We have a separate Ledger representing each Accounting Principle, as described above.
We choose the ledger to which a transaction has to be posted, based on the Accounting Principle to be used.

The same Chart of Accounts and Account Numbers will be used for a given co. code posting to different Ledgers

B) Parallel Accounts approach

Here, we post transactions to the same Ledger regardless of the Accounting Principle.
Different Account numbers are used for posting transactions according to different Accounting Principles.

We can have more than one Standard Ledger, but only one of them will be the Leading Ledger (typically '0L' Led
Only transactions posted to the Leading Ledger will be transferred from FI to CO module.

For every combination of Ledger & Co. Code, we can define up to ten different Currency Types to be used for re
Out of these, two Currency Types are always '10' (Local Currency) and '30' (Global or Cleint level currency). Othe

In S/4 HANA, the Controlling Area Currency is always the Global Currency.

DOCUMENT SPLITTING
(ACTIVE SPLIT)

Vendor Invoice (Entry View) [This is how the doc is entered by the user]
PC
Dr Expense 3000 USD PC A

Dr Expense 2000 USD PC B

Cr Vendor 5000 USD

(Open item)

Vendor Invoice (GL View) [This is how the doc will be posted by the system]
PC
Dr Expense 3000 USD PC A

Dr Expense 2000 USD PC B

Cr Trade Payables A/c 3000 USD PC A

(Sundry Creditors)

Cr Trade Payables A/c 2000 USD PC B

We have to configure Splitting Rules in order to enable Document Splitting as shown above.

All these Splitting Rules are configured under a Splitting Method.

Document Splitting is activated at the client level. All the co. codes in a given Client follow the same Splitting Me

DOCUMENT SPLITTING
(PASSIVE SPLIT)

Vendor Payment (Entry View)

PC
Dr Vendor 5000 USD

Cr Bank 5000 USD

Vendor Payment (GL View)

PC
Dr Trade Payables A/c 3000 USD PC A -----> PC is copied from the op

Dr Trade Payables A/c 2000 USD PC B

Cr Bank 5000 USD

No splitting rules are required for Passive Split

DOCUMENT SPLITTING
(CLEARING LINES SPLIT)

Cash Withdrawal from a Bank Account (Entry View)

Segment
Dr Cash A/c 2000 USD SEG A

Cr Bank A/c 2000 USD SEG B

Cash Withdrawal from a Bank Account (GL View)

Segment
Dr Cash A/c 2000 USD SEG A

Cr Clearing A/c 2000 USD SEG A

Dr Clearing A/c 2000 USD SEG B

Cr Bank A/c 2000 USD SEG B

No splitting rules are required for Clearing Lines Split; only a Clearing A/c has to be configured in the system

BAdI Business Add-In Programming code

Standard Ledger posting

Dr Salaries 5000 USD

Cr Provision for Salaries 5000 USD

Extension Ledger A (Audit adjustment postings)

Dr Salaries 700 USD

Cr Provision for Salaries 700 USD

Extension Ledger D (further adjustment postings for consolidation)

Dr Salaries 300 USD

Cr Provision for Salaries 300 USD

Example of Project Construction of an Apartment Complex

Example of WBS Element Construction of one Block in the Complex

Example of Network Header Installation of an Elevator in the Block

Example of Network Operation Installation of electric wiring for the Elevator

We do not assign any Profit Center in the Customer or Business Partner master

Profitability Segment is the same as Market Segment

There will be no impact at the Cost Center level because of Distribution or Assessment conducted at the Profit C
 TRANSFER PRICE It is the price at which goods are transferred from one PC to another, or from one co. code

Three Valuations used for determining Transfer Prices

A) LEGAL VALUATION
Transfer Price is the same as Standard Price, which is used for inventory valuation in FI.

B) GROUP VALUATION
Transfer Price is calculated as the weighted average Cost of Goods Mfd. (COGM) across all the units around the

A) PROFIT CENTER VALUATION

Transfer Price is determined by the management depending upon market factors and tax considerations.

Currency Type Valuation

second digit is '0' Legal Valuation

second digit is '1' Group Valuation

second digit is '2' PC Valuation

PRODUCT COST PLANNING

If there is no material master nor does any BOM/Routing (Quantity Structure) exist, then we use Product Lifecycle Costing

The Cost Center where the Overhead will be credited as well as the Cost Element (SCE of Category '41') will be picked up b
of the Overhead Costing Sheet.

Costing Variant determines:

a) Which Material Price to use? (Latest, or average of previous month?)

b) Which Activity Price to use? (useful if you have different Activity Prices in different periods)

c) Which Overhead Costing Sheet to use for calculating overheads?

Two important components of a Costing Varaint:

a) Costing Type This determines whether the Cost Estimate generated, will be uploaded to the material ma
It also determines the purpose of costing. Ex: Is the cost estimate being generated for using

b) Valuation Variant This determines:

 i) The Costing Sheet to be used for calculating overheads

ii) Which Material Price to use?

iii) Which Activity Price to use?

Overhead Key determines the percentage of overhead to be applied

Different products are linked to different Overhead Keys. In other words, different overhead rates are applied for different

Overhead Type will tell you whether the overhead is applied on actual costs or on planned costs, or on commitments.

We cannot generate any Cost Estimate using any of the costing methods without mentioning a Costing Variant.

The three methods of generating a Cost Estimate are:

Stage of Lifecycle
A) Product Lifecycle Costing Idea/Design & Specification

B) Cost Estimate without Quantity structure Prototype

C) Cost Estimate with Quantity structure Market maturity, saturation & decline

Let us say: PCE for Consumption posting

Origin Group: DOM (Domestic Coal) 400300

Origin Group: IMP (Imported Coal) 400300

Cost Estimate PCE

Domestic Coal Consumption 400300 DOM

Imported Coal Consumption 400300 IMP

Let us say, for FG 1 & FG 5, overhead percentage is 5%

Let us say, for FG 2, FG 3 & FG 4, overhead percentage is 3%

Material Overhead Group OH Key Overhead Percentage

FG 1 OG A OH5 5%

6%

FG 2 OG B OH3 3%
FG 3 OG B OH3 3%

FG 4 OG B OH3 3%

FG 5 OG A OH5 5%

300 KG. of a Raw Mtl @ 1000 USD per KG

200 KG. of a Raw Mtl @ 1200 USD per KG

Moving Average Price 1080 USD/KG (updated automatically in the material m

Stock Quantity 500 KG

Stock Value 540,000 USD

Each Production Version represents a combination of a selected BOM and a selected Routi

Each Production Version represents a particular technology for producing that product.
Generally we use different Production Versions in different Plants because of the difference

Single Level Cost Estimate

FG
SFG A 15
SFG B 25
RM 1 30
RM 2 40
AT MCHR 50

160
FG Costing Var.: PPC1 Costing Version:

Lets say, you want to include an SFG in the above FG

Suppose SFG already has a Cost Estimate in its material master

Mtl. Master for SFG

Cost Estimate 100

Use Original Cost Estimate

FG
SFG 100
RM 30
Others 10

140

COST ROLL-UP
Mtl. Cost Activity Cost

FG 60 45

RM 10
Assembly Activity 5

SFG 50 40

Note that the Mtl. Cost of FG only includes the Mtl. Cost of the SFG, and not the total cost o
Same for Activity Cost, O/h and other Cost Components.

This is called Cost Roll-up.

The Costing Variant (through Valuation Variant) determines which Cost Estimate you wish t

Quality Check included under Percentage Overhead

2% Suppose this is the approx. cost of quality checks

Disadvantage: It is difficult to flexibly adjust the overhead percentage based on th

Quality Check treated as a separate Business Process

Process Price: 100 USD per process

Cost Driver: No. of Quality Checks performed

Advantage: It is easier to flexibly allocate the Process Cost by adjusting the Cos

Target duration of an operation: 3 minutes

Actual duration of an operation: 5 minutes

Efficiency: 60%

Let us say, for a given Operation XYZ (Painting of Cars), we require:

Standard Machine Time 15 minutes

Standard Labour Time per Batch 30 minutes

Base Quantity (Batch Size) 'n' 50 Cars

Lot Size 'm' 1000 Cars

Target Duration for Machine 300 minutes

Time for the entire Lot:

Target Duration for Labour 600 minutes

Time for the entire Lot:

The above Target Durations will also have to be adjusted for the Efficiency.

For example, let us say the Machine is only 75% efficient

Adjusted Target Duration 400 minutes

for Machine Time

Activity Price of Machine Time: 20 USD/minute

Planned Cost of Machine Time 8000 USD
for the entire Lot

An accounting entry will be generated when you release a new Standard Cost Estimate/Sta

Lets say: Old Standard Price: 10 USD/unit

New Standard Price: 15 USD/unit

Lets say you have stock of the above product: 1000

Accounting Entry (Stock Revaluation)

Dr FG Inventory 5000 (B/S A/c)

Cr Revaluation Gain 5000 (P&L A/c)

The above GLs will be picked up from A/c Determination in FI-MM Integration, through the
(Valuation Class is assigned in the material master)
 Market Segment C

Characteristic Value

Sprite

Bombay

Retail

erating Profit, etc.) for each Market Segment separately.

hich are giving us high profits or delivering strong growth.

the market served by the org. globally.

Accounting Principles.
ounting Principle to be used.

ode posting to different Ledgers.

nt Accounting Principles.

eading Ledger (typically '0L' Ledger)

urrency Types to be used for reporting from ACDOCA table.

al or Cleint level currency). Other eight currencies can be freely defined.

Customer Invoice (Entry View)

PC
Dr Customer 5500 USD

Cr Revenue 3000 USD PC A

Cr Revenue 2000 USD PC B

Cr Output Tax @ 10% 500 USD

by the system] Customer Invoice (GL View)

PC
Dr Trade Receivables A/c 3300 USD PC A
(Sundry Debtors)
Dr Trade Receivables A/c 2200 USD PC B

Cr Revenue 3000 USD PC A

Cr Revenue 2000 USD PC B

 Cr Output Tax @ 10% 300 USD PC A

Cr Output Tax @ 10% 200 USD PC B

nt follow the same Splitting Method.

-----> Clearing item (it completes the transaction through a payment, for example)

-----> PC is copied from the open item to the clearing item

be configured in the system

Financial Statement for Ledger A

Salaries 5700
[Extension ledger posting + posting made to the underlying Standard Ledger]

Financial Statement for Ledger D

Salaries 6000
[Extension ledger posting + posting made to the underlying Extension Ledger + Standar

PC
PC Civil Works

PC Civil Works (defaulted from Project)

PC Civil Works (defaulted from WBS Element)

PC Electrical Works (manually entered or modified)

sment conducted at the Profit Center level.

 another, or from one co. code to another

across all the units around the globe.

s and tax considerations.

e use Product Lifecycle Costing method to generate a Cost Estimate.

tegory '41') will be picked up by the system from the Credit component

be uploaded to the material master or whether it will only be used for reporting purposes
mate being generated for using in Pricing? Or for Inventory valuation?
d rates are applied for different products.

costs, or on commitments.

ng a Costing Variant.

Required
Nothing; everything is entered manually

Only material masters

uration & decline BOM, Routing & Material masters

Overhead Percentage

(2021)

(2022)
automatically in the material master whenever a new lot of material arrives)

cted BOM and a selected Routing used for producing a product.

for producing that product.

Plants because of the differences in the production technology used in each Plant.

Multi-level Cost Estimate

FG
SFG A 15
RM 1A 10
RM 1B 5
SFG B 25
RM 2A 7
RM 2B 18
RM 1 30
RM 2 40
RM 3 20
AT MCHR 50

180
Overhead @ 5% 9

Total Cost 189

 10

al Cost Estimate Make a Copy (Generate fresh cost estimate)

FG
SFG 120 (Will not affect the original cost estimate in the mtl master
RM 30
Others 10

160

Activity Cost Overheads Process Cost

20 5

20 5 115

he SFG, and not the total cost of the SFG

which Cost Estimate you wish to generate.

quality checks
erhead percentage based on the actual no. of quality checks carried out

ocess Cost by adjusting the Cost Driver

[Standard Machine Time X m/n]

[Standard Labour Time X m/n]

the Efficiency.

[Target Duration/Efficiency]
 61 EUR/hr.

40.687

ew Standard Cost Estimate/Standard Price in the material master

units

FI-MM Integration, through the Valuation Class

Standard Ledger]

Extension Ledger + Standard Ledger]

estimate in the mtl master)