NEW GL

https://docs.google.com/document/d/1t7JSi6_l73ZXldnrY8AIsuFxT1Q-agPAX0IFFxKBHvA/edit

High level notes fico

INTERNAL ORDER

Internal order: An instrument which monitors the costs, short term, cost and revenue of specific service, ongoing cost control.

Order type:                  Key differentiate according to purpose, control indicators (classification, commit management, revenue postings, integrated planning), general parameters (settlement profile, planning profile, budget profile, class of order

Settlement

Allocation structure:    A tool allocates sender and receiver cost elements/cost object/category

            Settlement profile:      to be/not to be/full settle, alloc structure, valid receivers,

PROFIT CENTER ACCOUNTING

Maintain controlling area settings

Create dummy profit center.

Activate direct postings

Default account assignment of PC OKB9

Choose Additional Balance Sheet and P&L Accounts

                                                            3KEH, 3KEI

Difference is OKB9 should be created as cost element but 3KEH need not to be created as cost element

Sequence is OKB9 next 3KEH.

COST CENTER / COST ELEMENT ACCOUNTING

Statistical cost element category:       Statistical cost elements for balance sheet accounts enable you to control order or project budgets when you acquire fixed assets that are directly capitalized.  Fixed asset/AUC, material stock accounts make to order.

Statistical key figure:   Statistical figures are used to allocation of costs from one cost centre to other costs centers

Settlement profile:      define of control parameters for settlement

Settlement rule:          category, receiver, %

Allocation structure:    Sender cost elements, receiver category, and element

90: Cost element for balance sheet accounts in Financial Accounting
Cost elements of this category are generated automatically when you create cost elements in Controlling that have asset reconciliation accounts, that is, special balance sheet accounts, as corresponding general ledger accounts in Financial Accounting. 


You cannot change this cost element category in CO master data maintenance.


FI does not require CO account assignments of category 90. However, if you do enter a CO account assignment, this is only updated statistically even for true CO objects.


Cost elements of category 90 enable you to control the costs of an order or project budget during the acquisition of fixed assets that can be directly capitalized. To achieve this you enter a capital investment order or work breakdown structure (WBS) element in the appropriate field in the asset master data. The Asset Management (AM) component ensures that when the asset is acquired, the order or WBS element is automatically entered in the document.


In Controlling, orders and WBS elements are debited statistically. This statistical debit is checked with the budget during availability control.


The R/3 System does not support other uses of category 90 cost elements at present. You cannot plan using these cost elements.

PRODUCT COSTING

Origin Groups: Used for subdividing material and overhead cost

Costing sheet: Controls the calculation of overhead, combination of base row, overhead row and total/credit row.

Overhead key: The overhead key is used to determine order-specific or material-related overhead rates.

Cost component structure: A control of how the results of activity price calculation or material costing are stored.

Cost component:         Grouping of cost elements

Cost rollup:      indicator determines whether the costing results of a cost component are rolled up into the next-highest costing level (sales and admin cost/ cost of goods manufactured)

Costing Variant:           Determines how a cost estimate is performed and valuated. Date of valuation, bom, cost sheet, cost component structure are assigned.

Product cost collector:             A cost object in the Product Cost by Period component that collects the actual costs incurred in each period for the manufacture of a material

• Object in cost accounting used in Repetitive Manufacturing.

• A separate product cost collector can be created for each production version or material. The collected costs are settled to inventory at the end of the period.

• The functions performed for product cost collector during the period end closing process include:

• Work in process (WIP) calculation

• Variance calculation

• Settlement

• In Repetitive Manufacturing, all costs attributed to the production of a material are collected on a product cost collector and settled periodically (period-based Controlling).

• The product cost collector is settled periodically according to the posting period (for example monthly).

• For a material, product cost collector is made for each version

• The actual cost collected can be viewed through product cost collector.

Discrete manufacturing:          Order based production, product change frequently, varying of work centers,

Result analysis key:     Key specifying that the object is to be selected during results analysis or when work in process is calculated

Result analysis version:           A version that enables multiple valuations of the same object.

Line ID:            Groups the cost elements or revenue elements for the object according to origin

Period Process

Over head calculation (FI/CO entries)

WIP Calculation (No transaction)

Variance Calculation (No transaction)

Settlement (transaction, WIP entries and reversal)

COSTING AND PROFITABILITY ANALYSIS

Cost based COPA: Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches

Account Based COPA: Account-based Profitability Analysis is a form of profitability analysis organized in accounts and using an account-based valuation approach.

Characteristics are nothing but those aspects on which we want to break down the profit logically such as customer, region product, product hierarchy, sales person etc.

Value Fields are nothing but the values associated with these characteristics.

Planning level – Planning package – Parameter set

Transfer of Billing Documents

Maintain Assignment of SD Conditions to CO-PA Value Fields

Transfer of Incoming Sales Orders

Maintain Assignment of SD Conditions to CO-PA Value Fields

Characteristics:            Company code, Product, Distribution channel, sales district, customer, chassis number.

Field Groups:   Gross sales, cost of goods sold, and customer discount

Costing based and account based COPA serve the same purpose... analyze profitability of the product ....

Costing based COPA should always be preferred over account based COPA, as it provides greater flexibility, some extra features, some extra planning mechanism and faster reports

Following are the point of differences between Costing based vs. Account based copa (ABC)

1. Account based copa uses transaction tables (COEP, BSEG) and hence affects performance of CO transactions.CBC takes values from CE1XXXX to CE4XXXX tables. XXXX means Operating Concern name.

2. Estimated / Statistical values not possible in ABC, say, calculating frieght upon invoice on a thumb rule basis to have better view of profitability per customer.. no valuation strategy in Accounts based COPA..

3. Reports based on line items not possible in ABC.. possible in CBC.

4 Actual Top Down distribution only available in CBC not in ABC .

5. Revaluation of actual data to plan data is not available in ABC

6. No key figure schemes are available in ABC

7. In ABC, settlement cost elements are used to settle values to prof segments unlike value fields in CBC

8. Production variance / COGS accounts shud be defined as cost element in ABC.

System creates a document for each type of COPA as it stores values in different tables and what you can do with this data also differs like you can do TOP down in Costing Based Copa..

SUBSTITUTION:         GGB1, GCT0

                                    Dev & Prod should inline before transporting.

APP:

All Company codes:   Sender company code, paying company code, spl gl indicator

Paying com code:       min incoming/outgoing amount, forms, sender details

Payment country:     Method, type of payment (Cheque, wire) outgoing, doc type for payment and clearing, required master record specification (street, bank details, swift and IBAN, collection authorization), payment medium program, currencies allowed.

Payment method for co code: Min/max amount, foreign currency allowed, form data, drawer on form, payment advise control.

Tables: REGUA, REGUH, REGUP.

Payment terms:       OBB8

Payment term text, customer/vendor, base line date calculation, default, entry date, posting date, document date, no default

Partial and residual clearing: Both are partial clearing, will not clear/adjust the original invoice, instead create additional line, clears to the extent and outstanding appears

Advance payment:       OBYR

            Link Main recon account and adv payment recon account

            Down payment request

GOLIVE

Pre-Go live activities

            Master data load into production system

            Upload cost center plan

            Execute allocation cycles with in cost accounting

            Update planned activity

            Calculate activity prices

            Execute product costing run

            Ensure customizing request is in the production system

            Ensure all number ranges of all modules have been maintained

            Operating concern has been generated

            Vendor, Customer, GL, Material have uploaded          

            Upload open purchase orders

            Stock upload

            Mark and release cost estimate

            Upload A/c open items vendor customer

            Upload GL balances

            Upload Asset master and values AS91

Three way matching:        Invoice Vs PO Vs GR (OMR6)

ERS:    evaluated receipt settlement, vendor, po, info record

NEW GL

Extended data structure

Document splitting

Real time integration – FICO

Multiple ledgers for portraying parallel accounting.

Leading ledger:            manages local currency, Fiscal year variant, posting period

Non leading ledger:     useful for portraying accounting in accordance with different accounting principles.

Scenarios:        A scenario defines which fields are updated in the ledgers during posting.

                        SAP provided 6 standard scenarios, cannot define own scenarios.

Cost center, preparation for consolidation, business area, profit center, segmentation, cost of sales accounting.

SEGMENT:        segment field is one of the standard account assignments objects, running analysis at company code level.

                        As per IAS 14, AS 17

Document splitting:     It is procedure to split line items in selected dimensions. (profit center/segment).

It helps to eliminate Inter-unit postings as much as easier way.

Inheritance:                 characteristics for General Ledger Accounting are forwarded to lines that do not have any assignments.

Splitting characteristics:          splitting based on the assigned scenarios

‘0’ Zero/clearing accounts:      for reclass entries between 1 seg to other segment

INTEGRATION

Integration with sub ledgers and controlling

AP and AR

Assets

Controlling

Assets:            Post capitalization of cash discount to asset only works if the function was already configured when the invoice was entered.

Controlling:      Variant, assign to co. code, Account determination for secondary cost elements.

Real time integration FI & CO: 

Passive Split

Active split

Clearing lines/zero balance formation by balancing char: A vendor invoice was assigned to an incorrect segment and paid with this incorrect segment.

Passive: During clearing (during a payment, for example), the account assignments of the items to clear are inherited to  the clearing the line item(s) (sucha as payable line items)

Split Logic:      

The inheritance indicator ensures that the corresponding account assignment objects are

projected to the petty cash and tax line items, even without corresponding splitting rules.

Real time integration with CO: Define variant, Assign to company code,

ASSET ACCOUNTING

Depreciation area:       Area which shows the valuation of FA.

Chart of depreciation:  An object that contains the defined depreciation areas.

Asset class:                 Group the class of assets

Account determination:           Helps in determining the GL account.

Base Method:   Stated percentage or stated percent of life

Declining balance method:     

Multi-level method:      Validity start                

Depreciation Key:        It holds calculation method to arrive the depreciation value.

                        Base method, declining balance method, multilevel method, period control method.

Leased assets:

Depreciation Key:

INITIAL UPLOAD

1.    You will have to post the GL account balance asset classwise with OASV transaction code till June'11.

2.    You will have to upload asset data with AS91 with Asset APC, Accumulated depreciation, ordinary depreciation till June'11

3.    You will have to post Depreciation value for April to June as a P&L transaction data upload.

4.    You will be doing a configuration check box Start date of Depreciation as 04 (july). This will help in depreciation run from July onwards.

http://forums.sdn.sap.com/thread.jspa?threadID=2043635

DUNNING

Dunning area

Dunning procedure

                        Intervals, levels (9), charges, spl gl.

INPUT Tax:       On purchases – Debit

OUTPUT Tax:     On Sales - Credit

CIN

RG1:                 Register of excisable finished goods transferred from factory to a store also shows the sales of these goods.

RG23A:             Receipt of excisable raw material.

                        Part 1: quantity, Part 2: shows amount.

RG23C:             receipt of excisable capital goods.

RG23D:            record of all goods receipts and goods issue, as kept by depots in India.

PLA (TR6):        Personal Leger account

ER1 (RT-12):    Monthly summary.

57AC:               Returnable Challan used for Sub-contracting process.

Excise group:   A unit with in an excise registration in India

Utilization:        (RG23A+RG23C+PLA) - (SALES + Other movements + Adjustments) J2IU

RAW MATERIAL – DOMESTIC

MIGO                (1)        Stock Dr

GRIR Cr (1.1) 

CENVAT Dr

        CENVAT Clearing A/C Cr

MIRO               

(2)        CENVAT CLEARING Dr GRIR Dr

              Vendor Cr

RAW MATERIAL – IMPORT

MIRO (customs)

Dr – CENVAT Clearing Account

Dr – Customs Account

Cr – Vendor (Customs)

MIGO

Dr – Stock Account

Cr – GR/IR Account

Dr – CENVAT Account

Cr – CENVAT Clearing Account

Actual MIRO

Dr – GR / IR Account

Cr – Vendor

Purchase of Capital Goods (RG23C)

Dr – Stock Account

Cr – GR/IR Account

Dr – CENVAT Account

Dr – CENVAT on Hold (50 % of Duty)

Cr – CENVAT Clearing Account

Actual MIRO

Dr – CENVAT clearing Account

Dr – GR /IR Account

Cr – Vendor

Sub-contracting with payment of Excise Duty

·         Excise Clerk creates Outgoing Excise Invoice using J1IS.

·         Store Keeper creates the Goods Receipts in MIGO & Capture the Excise Invoice (RG23C Part1 Updation – Quantity Updation).

·         Excise MM Clerk Post the Excise Invoice in J1IEX_P (RG23C Part II Updation – Account Posting).

·         MIRO

Stock Transport Order – (STO)

·         Supplying plant Excise Clerk creates Outgoing Excise Invoice using J1IS

·         Supplying Plant sends the goods with the Excise invoice to the receiving plant

·         Receiving plant Store Keeper creates the Goods Receipts in MIGO & Capture the Excise Invoice (RG23C Part1 Updation – Quantity Updation).

·         Receiving Plant Excise MM Clerk Post the Excise Invoice in J1IEX_P (RG23C Part II Updation – Account Posting).

Enterprise structure

Business Area

Business areas are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches).

Chart of accounts  

Retained Earnings Account:     Retained earning account is an Equity account (of a Balance sheet) that records cumulative (from year to year) net income/loss which is retained by the corporation rather than distributed to its owners as dividends

Document type:          Document types differentiate business transactions and control document filing, reference and document entry

BANK ACCOUNTING: 

CASH ACCOUNTING: 

Set up GL, Setup cash journal.

Create, change and delete business transaction.

Capital Lease Assets in SAP

https://docs.google.com/presentation/d/1_z43C8B5Yp_yL3Rbvw2IcnoRJ6SJ7lxjLQjm1vqjrKQ/present?pli=1&ueb=true#slide=id.p16

sap material moving average price vs standard price

The standard price/moving average price in material master is used to valuation/determine the value of your inventory. The price on the purchase order is the base price that you actually pay for the inventory. The purchase order price should be pulled from the info record. These can
sometimes be out of sync. If the material is valued at a standard price, the difference between the purchase order price and the standard price will go to a price difference account. If the material is valued at a moving average price, the difference between the purchase order price and the moving average price will NOT go to a price difference account. The moving average price will simply be adjusted.

We use a simple rule of any material purchased externally is valuated at a moving average price. Anything produced internally and placed into inventory is valuated at a standard price across all plants.

Generally all raw materials (ROH), spare parts (ERSA), traded goods (HAWA) etc. are assigned as moving average price (MAP)  because of the accounting practice of accurately valuating the inventory of such materials. These materials are subject to the purchase price fluctuations on a regular basis.
Company generally use moving average on purchased materials with small cost fluctuations.  It is most appropriate when the item is easily obtainable.  The impact on margins are minimized which reduces the need for variance analysis.  Furthermore, the administrative effort is low as there are no cost estimates to maintain.  The cost reflects variances, which are closer to actual costs.
The semi-finished goods (HALB) and finished products (FERT) are valuated with standard price because of the product costing angle. If these were to be MAP controlled, then finished/semi-finished product valuation would fluctuate due to data entry errors during backflushing of material and labour, production inefficiencies (higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice.
Refer to OSS note 81682 - Pr.Contr.V for semi-finished and finished products.
SAP recommends that standard price to be used for FERT and HALB. If actual price is required for valuation, make used of the functions of material ledger where a periodic actual price is created which is more realistic.
e.g. how SAP calcualte the moving average price
Goods Receipt for Purchase Order
Balance on hand quantity + Goods Receipts quantity
Balance on hand value     + Goods Receipts value
New Moving Average Price = Total Value / Total Quantity
Invoice Receipt for Purchase Order
Invoice price more than Purchase Order price

• additional value add to Balance on hand value then divided by Balance on  hand quantity

Invoice price less than Purchase Order price

• difference is deducted from the Balance on hand value (up to 0).  The rest of the amount will becomes price variance.  This will result in Balance on hand value is zero while there are Balance on hand quantity.  If the Balance on hand value is enough to deduct, then the remaining value will be divided by Balance on hand quantity.

When your Goods Issue price is constantly greater than your Goods Receipt price, it will result into zero value moving average price.

OSS note
185961 - Moving Average Price Calculation.
88320 - Strong variances when creating moving average price.
Never allow negative stocks for materials carried at the moving average.

Valuation with Moving Average price:

In the following example, inventory is valuated with the moving average price. The system analyses how stock coverage and stock shortage affect prices.
For more information on the standard price and moving average price, see Price Control with and without the Material Ledger
Problems with Stock Coverage
Example 1:
Stock Coverage at Goods Receipt

1. In the current period, there are a number of goods receipts for a material that is valuated with the moving average price:

Goods receipt 1: 100 pieces at $1/pc.

Goods receipt 2: 100 pieces at $1/pc.

Goods receipt 3: 100 pieces at $1/pc.

Valuation data for the material:

Inventory quantity: 300 pieces Inventory value: 300 Moving average price: $1

2. A goods issue occurs for 180 pieces of this material.

Valuation data for the material:

Inventory quantity: 120 pieces Inventory value: 120 Moving average price: $1

3. In the invoice receipts for the goods receipts above, the invoice price varies from the purchase order price in all three cases:

Invoice receipt 1: 100 pieces at $1.20/pc.

Invoice receipt 2: 100 pieces at $1.20/pc.

Invoice receipt 3: 100 pieces at $1.20/pc.

Because in all three cases there was adequate stock coverage at the time of the invoice receipt (inventory quantity is at least as large as the invoice quantity), the price variances from all three invoices are completely debited to inventory. In total, the remaining inventory quantity is debited with a variance of $60. The individual orders do not check whether the remaining inventory quantity is also debited by other orders

Valuation data for the material:

Inventory quantity: 120 pieces Inventory value: $180 Moving average price: $1.50

The result is an excessively high valuation price for the material stock and subsequent material consumption, as all price variances from the various goods receipts flowed into the price.

Example 2:
Stock Coverage at Order Settlement
During the settlement of variances on manufacturing orders, the system checks whether a corresponding stock coverage exists for the respective material. If multiple manufacturing orders were completed during a period and the material stock at the end of the period is smaller than the sum of the receipts from production orders, variances from all production orders are allocated to the material stock, assuming adequate stock coverage.
The individual orders do not check whether the period ending inventory was already debited with variances from another order!

1. One piece of material FERT is produced per day for 10 days in one period and delivered to stock at a price of $100.

Valuation data for the material:

Inventory quantity: 10 pieces Inventory value: 100 USD Moving average price: 10 USD

2. There is only 1 piece left in material stock at period end. A variance of $10 is calculated for each production order. Each individual production order checks stock coverage and determines that the variances can be posted completely to stock.

Valuation data for the material at period end:
Inventory quantity: 1 piece Inventory value: 200 USD Moving average price: 200 USD

The ending inventory of 1 piece is debited by $100 and the moving average price for material FERT becomes $200.

Thus, the remaining material inventory is charged with variances that it didn't even cause, resulting in an unrealistic price. Subsequent consumption is also valuated using this inflated price. The material stock value no longer reflects the actual cost of goods manufactured.

The system reacts differently if it discovers a stock shortage.
Problems with Stock Shortage
Example 3: Stock Shortage at Invoice Receipt
If the invoiced amount of an externally procured material is less than the amount with which the goods receipt is valuated, the invoice receipt should correct the material price by reducing the value of the material stock. If, however, there is a stock shortage at the time of the invoice receipt, the stock value is only reduced proportionally; the remaining amount is posted to the price difference account in Financial Accounting.
Example 4: Stock Shortage at Order Settlement
Goods Receipt for the Order:

1. One piece of material FERT is produced per day for 10 days in one period and delivered to stock at a price of $100.

Valuation data for the material:
Inventory quantity: 10 pieces Inventory value: 100 USD Moving average price: 10 USD

2. There is 1 piece left in material stock at period end. A variance of $10 is calculated for each production order.

The variances of a manufacturing order, 100 USD, should be settled with a lot size of 10 pieces. There is only 1 piece of the material left in stock.

Thus, the material stock is only partially debited (with 10 USD).

Valuation data for the material:
Inventory quantity: 1 piece Inventory value: 20 USD Moving average price: 20DM Price difference account: 90 USD
No Goods Receipt for the Order:
If variances were calculated for a manufacturing order in one period even though there were no goods receipts for that order in that period (such as with follow-up costs) the entirety of these variances are posted to the price difference account. Here, it cannot be guaranteed the material stock value reflects the actual position.