SAP Product Costing Configuration
SAP R/3 ENTERPRISE 4.7
TABLE OF CONTENTS
INTRODUCTION..............................................................................................2 A) Product Cost Planning .................................................................................4 1. Basic Settings or !aterial Costing ...............................................................4 . !aintain O"#r$#ad Cost E%#&#nts ..........................................................4 .' (#fin# Ca%cu%ation Bas#s...........................................................................) .3 (#fin# P#rc#ntag# O"#r$#ad Rat#s.......................................................... .4 (#fin# *uantit+,Bas#d O"#r$#ad Rat#s.................................................. 4 .- (#fin# Cr#dits ......................................................................................... 4
INTRODUCTION
A .ar& .#%co&# Fri#nds. /ou ar# going to %o"# t$is 0oo1 and 2# $a"# ta1#n gr#at #fforts to #nsur# t$at 2# 3r#s#nt t$# configuration in a "#r+ si&3%# +#t d#tai%#d &ann#r. Product costing &odu%# of SAP $as #as#d out a%% $ass%#s of costing a &anufactur#d 3roduct. Product costing &odu%# us#s data for "a%uation fro& t$# Production 3%anning 4PP5 &odu%#. T$# Product P%anning !odu%# &aintains t$# Bi%% of !at#ria% and Routing or t$# !ast#r R#ci3#. Product Cost 3ri&ari%+ consists of !at#ria% Cost6 La0or cost and O"#r$#ad cost To arri"# at t$# &at#ria% cost6 SAP 3ic1s u3 t$# 7uantit+ of ra2 and 3ac1ing &at#ria% r#7uir#d fro& t$# Bi%% of !at#ria%. It t$#n "a%uat#s t$is 7uantit+ 2it$ t$# "arious 3ric#s a"ai%a0%# in t$# &at#ria% &ast#r in accordanc# 2it$ t$# strat#g+ s3#cifi#d in custo&i8ing. In a %i1# &ann#r it do#s t$# sa&# to arri"# at t$# %a0or cost. T$# ti&# r#7uir#d for #ac$ o3#ration is s3#cifi#d in t$# routing or r#ci3#. T$is 7uantit+ is &u%ti3%i#d 0+ t$# acti"it+ 3ric#s &aintain#d in t$# cost c#nt#r accounting &odu%#. .# 2i%% co"#r a%% t$is and &or# in t$is docu&#nt
.# 2i%% a%so co"#r 3roduct cost 3%anning6 cost o09#ct contro%%ing 0+ 3#riod 4r#3#titi"# &anufacturing56 cost o09#ct contro%%ing 0+ ord#r6 cost o09#ct contro%%ing 0+ sa%#s ord#r and configuration s#ttings for co,3roduct costing. .# $ad configur#d contro%%ing ar#a : ;;6 in t$# docu&#nt on cost c#nt#r accounting. .# 2i%% no2 do t$# 3roduct,costing configuration in contro%%ing ar#a : ;;.
A) Product Cost Planning
For doing t$# configuration 2# 2i%% us# t$# fo%%o2ing 3at$ on t$# SAP a33%ication scr##n<, SAP !#nu Too%s Acc#%#rat#dSAP Custo&i8ing SPRO , Edit Pro9#ct
1. Basic Settings for Material Costing
The company A Ltd for its plant 9100 requires the following overheads:1) aterial overhead !) "roduction overhead #t should $e calculated as follows:%n materials & ' material overhead should $e calculated and on (ages ) ' "roduction overhead should $e calculated* Let us go a$out configuring the costing sheet from steps 1*a to 1*g * (e will now see how to create a costing sheet for the purpose of overhead calculation*
1.1 Maintain O er!ead Cost "le#ents
I!= Contro%%ing Product Cost Contro%%ing Product Cost P%anning Basic S#ttings for !at#ria% Costing O"#r$#ad !aintain O"#r$#ad Cost E%#&#nts To a%%ocat# o"#r$#ad to 3roducts6 +ou n##d to d#fin# o"#r$#ad cost #%#&#nts. T$# SAP s+st#& t$#n 3osts t$# o"#r$#ads to t$#s# o"#r$#ad cost #%#&#nts. T$# cost c#nt#r is cr#dit#d 2it$ t$# o"#r$#ad cost #%#&#nt and t$# 3roduct or t$# 3roduction ord#r is d#0it#d 2it$ t$# o"#r$#ad cost #%#&#nt. L#t us no2 cr#at# s#condar+ cost #%#&#nts for o"#r$#ad. Cr#at# s#condar+ cost #%#&#nts of t+3# 4 4o"#r$#ad5.
+pdate the following:-
,lic- on .ave Cr#at# anot$#r o"#r$#ad cost #%#&#nt for 3roduction o"#r$#ads
C%ic1 on Sa"#
1.$ Define Calculation Bases
I!= Contro%%ing Product Cost Contro%%ing Product Cost P%anning Basic S#ttings for !at#ria% Costing O"#r$#ad Costing S$##t< Co&3on#nts (#fin# Ca%cu%ation Bas#s T$# ca%cu%ation 0as# d#t#r&in#s to 2$ic$ cost #%#&#nts o"#r$#ad is a33%i#d tog#t$#r. .# 2i%% d#fin# ' 0as#s on 2$ic$ o"#r$#ads 2i%% 0# ca%cu%at#d<, 5 !at#ria%s '5 .ag#s Proc##d as fo%%o2s<,
C%ic1 on
and update the following:-
,lic- on .ave S#%#ct (ou0%# c%ic1
>3dat# C%ic1 on and +pdate the following:-
The /aw material consumption is $oo-ed to cost elements )000000 )00011 and )00200*This is created as a cost element group 91/ " * (e update this as $ase for our calculation of overhead*
,lic- on .ave S#%#ct (ages are $oo-ed under the primary cost element )!0001 and )!0&03 and also wages allocation from other cost center is allocated using secondary cost element 9)1!01*Therefore we specify this as $ase* (ou0%# c%ic1 C%ic1 on and +pdate the following:-
,lic- on .ave
1.% Define Percentage O er!ead Rates
I!= Contro%%ing Product Cost Contro%%ing Product Cost P%anning Basic S#ttings for !at#ria% Costing O"#r$#ad Costing S$##t< Co&3on#nts (#fin# P#rc#ntag# O"#r$#ad Rat#s .# 2ant to ca%cu%at# - ? o"#r$#ad on !at#ria% and 4? on 2ag#s. But t$# condition is t$at6 it s$ou%d 0# on%+ ca%cu%at#d for 3%ant : ;;. To fu%fi%% t$# a0o"# r#7uir#&#nt 2# n##d to s#%#ct t$# d#3#nd#nc+ overhead type4 plant. T$us t$# s+st#& 2i%% on%+ ca%cu%at# o"#r$#ad rat# for 3%ant : ;;. In t$# Std. SAP s+st#& t$#r# ar# 7uit# a nu&0#r of d#3#nd#nci#s a"ai%a0%# suc$ as 3%ant6 ord#r t+3#6 o"#r$#ad t+3#6 o"#r$#ad 1#+6 co&3an+ cod# #tc. @#r# 2# can ca%cu%at# P%an and actua% o"#r$#ad. P%an o"#r$#ad rat# is r#7uir#d for t$# 3ur3os# of 3%anning t$# cost of t$# 3roduct 4standard cost #sti&at#5. Actua% o"#r$#ad rat# is r#7uir#d for t$# 3ur3os# of c$arging it to t$# 3roduction ord#r. In t$is st#3 2# 2i%% cr#at# t$# overhead rate6 attac$ t$# d#3#nd#nc+ and d#fin# t$# o"#r$#ad rat#. Furt$#r 2# 2i%% a%so d#fin# 2$#t$#r it is 3%an or actua%. C%ic1 on and update the following:-
,lic- on .ave S#%#ct (ou0%# c%ic1
C%ic1 on
O"er#ead t$%e & 1 is actual o"er#ead rate O"er#ead t$%e & 2 is %lanned o"er#ead rate ,lic- on .ave
C%ic1
S#%#ct (ou0%# c%ic1 C%ic1 on and u3dat# t$# fo%%o2ing
C%ic1 on To &aintain a n#2 d#3#nd#nc+ t$# 3at$ is as fo%%o2s<, I!= Contro%%ing Cost C#nt#r Accounting Actua% Postings P#riod,End C%osing O"#r$#ad Costing S$##t< Co&3on#nts EAtras< (#3#nd#nci#s / Condition Ta0%#s (#fin# Condition Ta0%#s/ (#fin# (#3#nd#nci#s. Cr#at# a n#2 Condition ta0%# 2it$ ta0%# na&# as ::: /ou n##d to s#%#ct fi#%ds Contro%%ing ar#a6 O"#r$#ad t+3#. Profit c#nt#r and 3%ant. Cr#at# a n#2 d#3#nd#nc+. Cr#at# a n#2 acc#ss s#7u#nc#. In t$is acc#ss s#7u#nc# +ou 2i%% assign t$# condition ta0%#.
1.& Define 'uantit()Based O er!ead Rates
I!= Contro%%ing Product Cost Contro%%ing Product Cost P%anning Basic S#ttings for !at#ria% Costing O"#r$#ad Costing S$##t< Co&3on#nts (#fin# *uantit+,Bas#d O"#r$#ad Rat#s In addition to 3#rc#ntag#,0as#d o"#r$#ad rat#s6 +ou can a%so d#fin# 7uantit+,0as#d o"#r$#ad rat#s6 for #Aa&3%#6 ;; INR 3#r tonn#5. /ou can d#t#r&in# o"#r$#ad rat#s in t$# 3%an and actua%. @#r# too +ou n##d to attac$ t$# d#3#nd#nc+. (e will not configure a quantity overhead*
1.* Define Credits
I!= Contro%%ing Product Cost Contro%%ing Product Cost P%anning Basic S#ttings for !at#ria% Costing O"#r$#ad Costing S$##t< Co&3on#nts (#fin# Cr#dits B+ d#fining t$# cr#dit 1#+ +ou ar# cr#diting t$# cost c#nt#r and d#0iting t$# 3roduct or t$# 3roduction ord#r. T$# cr#dit on t$# cost c#nt#r $a33#ns 2it$ t$# o"#r$#ad cost #%#&#nt 2$ic$ 2# cr#at#d #ar%i#r : ;;; !at#ria% o"#r$#ad and : ;;;' 3roduction o"#r$#ad. @#r# 2# attac$ t$# o"#r$#ad cost c#nt#r 2$ic$ is to 0# cr#dit#d.
/ou can a%so d#fin# 2$at 3#rc#ntag# of t$# o"#r$#ad is to 0# a%%ocat#d as fiA#d costs. T$#r#for# 2# 2i%% cr#at# ' cr#dit 1#+s on# for &at#ria% o"#r$#ad and ot$#r for t$# 3roduction o"#r$#ad. C%ic1 on and u3dat# t$# fo%%o2ing<,
C%ic1 on S#%#ct (ou0%# c%ic1 >3dat# t$# fo%%o2ing<,
C%ic1 on
.# u3dat# t$# cost c#nt#r 2$ic$ is to 0# cr#dit#d using t$# o"#r$#ad cost #%#&#nt.
C%ic1 on
S#%#ct (ou0%# c%ic1 C%ic1 on
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