SAP CO NOTES

SAP CO NOTES
INDEX PARTICULARS CO Areas and Basic Settings for Controlling Cost Center Accounting Online Reconciliation Leger 1. Creation of GL Masters 2. CO Customization 3. FI Customization Cross Company Code Postings Maintain Overhead structure Statically Key Figures (SKF) Assessment Internal Orders Budgeting and Availability Control Profit Center Accounting Integration 1. Transaction Key /Process Key 2. Valuation Class 3. Assignment of accounts 4. MM Customization 5. FI Consultant job in MM 6. Assignment of Accounts for Automatic Postings(MM to FI) 7. FI Consultant job in SD 8. SD Steps 9. Co-Profitability Analysis (CO-PA) 1. Data flow in CO-PA 2 Page No. 3 11 23 25 27 28 31 34 38 42 46 60 64 76 77 78 89 90 97 100 115

120 120

2. Customization 3. SD End user area Report Painter Product Costing 1. Co Consultant Job (Activity based costing) 2. PP Consultant job 3. CO End User area 4. MM End User area 5. PP End user area Actual Costing 1. CO Consultant job 2. PP consultant area 3. Asset Accounting area New General Ledgers (ECC 6 New Features ) 1. Customization 2. Document Splitting Central Excise and Sales Tax 1. Central Excise Customization (Purchase) 2. Central Excise customization (Sales) 3. SD End user area Financial Statement Version Asset Accounting Area Project Report

122 126 129 132 134 144 146 147 149 153 153 167 174 179 180 188 192 195 211 217 228 237 238

CONTROLLING (CO)
This is used for internal reporting in Co organizational Hierarchy Highest node is controlling area. In FI Highest node is company , Company code CO AREAS : 1. Cost Elements Accounting: To update Co records / sub modules cost elements are required.

There are two types of cost elements 1. primary cost elements 2. Secondary cost Elements 2. 3. Cost Center Accounting: This is used to view department wise costs. Internal orders: This is used to view costs for specific task. Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle, Telephone wise expenses production order costs / Exhibition costs. Create each vehicle as n order and capture the costs Production order: Create production order as on internal order and capture the costs. Exhibition costs: Sales men salaries , Advertisement discounts to customers conveyance. Create a exhibition order 4. Profit center accounting : This is used to view profitability product wise / Division wise / Location wise if business area is not used in FI Product Costing :This is used for valuation if inventories

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Eg: Finished goods and work in process. Profitability analysis: This is used to view profitability for number of parameters at a time. Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales organization wise profitability this is reporting tool

BASIC SETTINGS FOR CONTROLLING: Maintain controlling area FI Organization Structure Company | Company code | Business area Scenario 1 Company | Company code | Business area CO. Organization Structure Controlling | | | Cost Center

= ---

Controlling Area | Cost Center

(a)Controlling area at company code level, b)Business area will be assigned in cost centers.)

Scenario -2 Company | Company code | Business area = Controlling Area | | | Cost Center

---

(a )Controlling area at company (group) level no. of company codes will have one controlling area, b) Business area will be assigned in cost centers.

1) When management wants to view number of company codes cost centers data at a time It is not possible in 1st Scenario It is possible 2nd scenario. In report it will ask only one controlling area and not multiple controlling area. 2) When management wants to view number of cost centers data of company code Directly it is possible in 1st scenario. Also it is possible in 2nd Scenario By creating cost center groups. It means 2nd Scenario is more flexible. MAINTAIN CONTROLLING AREA: Path : SPRO Controlling General controlling Organization Maintain controlling area (Tr.Code is OKKP) If we go for 1st scenario company code should be the controlling area. If we go for 2nd scenario we can use any code for controlling area code. Double click maintain controlling area. Select new entries button Controlling area Name Company code to controlling area Currency type :BIL :controlling area forBIL : Select controlling area same as company code : select 10 company code currency.

Once we select 10 company code currency , currency field, Chart of Accounts filed and Fiscal year variant filed will be updated automatically. Cost Center standard hierarchy : BILHIER Save Select yes button for the message system to create as a standard hierarchy Select create request button Short description : Co customization for BIL Press enter Press enter once again to save in the request. COST CENTER STANDARD HIERARCHY: Cost center standard hierarchy : BILHIER

Cost centers

| Dept. A

Dept.B

Dept.C

At the time of cost center creation It will ask under which hierarchy we are creating the cost centers. In the report when we give cost center Dept.A It gives only Dept.A date. When we give cost center Dept.B It gives only Dept.B date. When we give cost center hierarchy BILHIER It gives all the cost centers data.

Double click on assignment of company codes folder Select new entries button Give the company code : BIL Select save button or Ctrl+S Press enter to save in your request Double click on a activate components / control indicators folder Select new entries button Fiscal year Cost center :2007 : Select component active

Select active type check box Order management select component active. Select profit center accounting check box Save Ignore the warning message press enter MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS: 1. CO through posting from FI (Business transaction COIN CO No rang interval for the business transaction COIN FI Document type And no.ranges SA Co

COIN

| 01 | 1-100000 Manual posting F-02

| | 1-00000 Automatic posting

1. Repost Co line items (Business transaction RKU3) Option 1 Posting in FI Wages A/c Wages A/c Wages A/ To bank 1 1 Dr Dr Dr 100000 200000 300000 600000 Dept.A Dept.B Dept C

FI Document Co Document COIN

Note :Automatic posting is a business transaction Option 2 Posting in FI Wages A/c Dr 600000 Posting in CO Dept common Dept.common Dept. Common Post Co line item Dept A Dept B Dept C 100000 200000 300000

To Bank 2 1 1

600000

Documents FI Document CO Document COIN

No FI document 1 CO Document RKU3

Transfer document wise/line item wise Total documents generated 1. 2. Wages A/c FI Document CO Documents Dr 600000 Dept Common Dept A 300000 Dept Common Dept B 200000 Dept Common Dept C 300000

Rent A/c To bank

Dr

50000 650000

Dept A Repot CO line item

Transfer line item wise Transfer document wise / Line item wise Report costs ( Business transactions RKU1) This is used when we split the cost center into number of cost centers or transfer for wrong cost center postings. No FI document will be generated CO document only will be generated Transfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept X Dept A 30/04/2008 30/05/2008 30/06/2008 400100 Salaries 200000 400100 Salaries 250000 400100 Salaries 275000 ---------400100 total 725000 400101 wages 400101 wages 400101 wages 100000 150000 125000 ---------375000 Rent Rent Rent 500000 50000 50000 -------150000 Dept X

400100 Salaries 200000

30/04/2008 03/05/2008 30/06/2008 Total 400101 30/04/2008 31/05/2008 30/06/2008

400101 wages 125000

400300 400300 400300 400300 Total

400300

Rent 40000

Planning primary costs ( Business transaction RKP1) Planning cost center wise or no. range interval for all the types , budgeting cost center wise for each cost element. Path: SPRO- Controlling General controlling Organization- Maintain number ranges for controlling document (T.Code is KANK)

Controlling area : BIL Select maintain groups button From the menu select group Insert Text: Co doc no. range interval for BIL From number :1 To number :100000 Enter Double click on business transactions COIN RKU3 RKU1 RKP1 Select Co.No.range interval for BIL check box From the menu select Edit Assignment element group Save Ignore the message press enter Note :Usage of Version locked authorized person only Eg; Cost Accountant MAINTAIN VERSIONS: Version are nothing but budgets Original budgets Revised budget Re revised budget Version 0 version 1 Version 2

We can compare actual with original budget, Revised budget and Re revised budget Path: SPRO Controlling General controlling Organization Maintain versions Select version 0 (Plant /actual version ) Double click on settings for each fiscal year folder Give the controlling area Enter Select new entries button Fiscal year Exchange rate type :2008 :select B (Bank selling rate) : BIL

Once budgeting is completed at end user are a select version locked So that no body can change budget figures.

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Select save button or Ctrl+S

Press enter to save in your request Select bank arrow Planning is made attend user area after plannings completed we select version locked check box , no body can change planned figures.

COST ELEMENT ACCOUNTING: To update CO records / sub modules cost elements are required There are 2 types of cost elements 1. Primary cost element A)Primary cost elements are our general ledger accounts B) Posting to primary cost elements are possiable 2 Secondary cost elements A)Secondary cost elements are other than general ledger accounts B) Postings to secondary cost elements are not possible. They are used to allocations / Settlements Dept C Dept A Dept B (Service Dept) (Production Depts) Salaries 100000 Wages 200000 Power 5000 In the month end, by using secondary cost element, we allocate costs from service to production Depts. COST ELEMENT CATEGORIES

PRIMARY COST ELEMENT CATEGORIES: 1. Primary cost / costs redacting revenues. This used for expenditure accounts 3. Accrual / Deferral per surcharge :This is used for month end provisions only in CO 11. Revenues: This is used for income accounts 12. Sales Deduction: This is used for expenditure accounts like sales commission Trade discount where CO-Profitability analysis module is activated 22. External settlement( Settlement from CO FI): This is used for allocation of internal order settlement to GL Accounts / Assets. 11

SECONDARY COST ELEMENT CATEGORIES: 21. 31. 41. 42. 43. Internal settlement (Settlement from CO to CO) This is used for allocation of internal order settlement cost to cost centers. Order/ Project Results analysis: This is used for work in process calculations is product costing. Overheads rates :This is used for calculation of raw material overhead rate / Production overhead rate in product costing . Assessment: This is used for allocation of primary cost element posing and secondary cost postings from one cost center to other cost centers. Internal Activity Allocation: This is used for calculation of activity types in production cost. Eg: Machine hours rate / labour hour rate in product costing.

COST CENTER ACCOUNTING This is used to view department wise costs we use cost center accounting. 1. Creation of primary cost elements, we can create A) FI Area | B)CO Area |- Co Area C)Automatic creation | 2. Display cost elements created 3. Creation of filed status group by making cost center required entry field 4. Assign new filed status group in GL expenditure accounts 5. Creation of cost centers. 6. Creation of cost center groups. 7. Creation of cost element groups 8. To enter exchange rate for type M for INR to Euro 9. Posting of transaction in FI 10. To view cost center wise report. 11. To view CO documents 1. A) Creation of primary cost element at FI area Use to FS00 GL masters creation Give the GL account number : 400100 Salaries Account Company code : BIL Form the menu select GL Account display Now select edit cost element button Valid from date :01.04.2008 To date :31.12.9999 comes automatically Enter Cost element category : Select 1 (Primary cost / cost reducing revenues) Select save button or Ctrl+S

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1. B) Creation of Primary cost element at CO area: Use transaction code FS00 Path: Accounting- Controlling- Cost element accounting-Master data-Cost element Individual processing-Create primary (Tr.code KA01 ) Cost element : 400300 Rent Account Valid from :01.04.2008 to 31.12.9999 Enter Cost element category :1 (primary cost /cost reducing revenue) Save 1. C) Automatic creation of primary cost elements: 1) Marked default settings (OKB2) path : SPRO-Controlling-Cost element accounting-Master data Cost elements Automatic creation primary and secondary cost elements-Make default settings.(Tr.code is OKB2) Give the chart of Accounts : BIL Enter Account from :400301 Account to :499999 Cost element category select 1 Save Press enter to save in your request Create batch input session (OKB3) Same path as above Give the controlling area Valid from Valid to Session name Execute Execute batch input session (Tr code is SM35) Same path as above Select session name Select process button : BIL : BIL :01.04.2008 :31.12.1999 :BIL (This is text field)

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Select session

:BIL

Select display errors only radio button Select process button We get a message processing of batch input session completed. Ignore the message & select exit batch input button

Display primary cost elements created (KA03) Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element Individual processing Display- (Tr code is KA03) Select drop down button beside cost element Give the Controlling area : BIL Enter Creation of field status group by making cost center required entry field: (Tr.Code is OBC4) Select field status variant: BIL Double click on filed status groups folder 100000 equity share capital G001 We cant make cost center required for balance sheet accounts G001 For G004 we make cost center required and assign in salaries account (i.e in expenditure accounts)

400100 Salaries Account

Double click on field status group G004 cost accounts Double click on General data Text make it required entry field Select next group button Cost center select required entry filed Select next page or page down button two times. Business area make it option entry filed Save

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Press enter to save in your request Assign group new field group in GL expenditure accounts (FS00) Give the GL account 400100 salaries account Company code :BIL

From the menu select GL account change select create / Bank / Interest tab Filed status group change to G004 Save Give the GL Account No.400300 Rent A/c Company code :BIL

From the menu select GL account change Change field status group to G004 Save Creation of cost centers: Path: Accounting-Controlling-Cost center accounting-Master data-Cost centerIndividual processing-create (Tr.code is KS01) Cost center Valid from Enter Give the name Give the description Person responsible Cost center category Hierarchy area Business area Currency Select save button or Ctrl+S Ignore the warning message press enter One more cost center Valid from : Dept B :01.04.2008 to 31.12.9999 : Dept A : Dept A :Mr.A : Select 1 production : select BILHIER :BILH :INR : Dept A :01.04.2008 to 31.12.9999

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Reference cost center Controlling area Enter Change the name to Dept B

: Dept A : BIL

Change the description to cost center Dept B Change the person responsible Other fields are common Select save button Ignore the warning message press enter Cost center Valid from Reference cost center Controlling area Enter Change the name to : Dept C : Dept C :01.04.2008 to 31.12.9999 : Dept A : BIL : Mr B

Change the description to cost center : Dept C Change person responsible to Mr.C Cost center category Select save button or Ctrl+s Ignore the warning message press enter Creation cost center groups: Hierarchy : BILHIER Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z Category Production Prod Service Production Production Service Business Area HYD HYD HYD BGL BGL BGL If we want to see all cost centers data BILHIER If we want to see production cost centers data Create a cost center group and assign Dept A . Dept B, Dept X and Dept Y. If we want to see HYD cost centers data cost cost center group and assign Dept A, Dept b and Dept C If we want so settled production cost centers data create A cost center group and assign Dept A and Dept B : Select to 2 (service cost center)

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Path : Accounting Controlling Cost center accounting Master data- Cost center group Create (Tr.code is KSH1) Give the cost center name Enter Description Hyderabad production cost centers BIL Select Edit Cost Center Insert cost center button Select the cost centers Dept A Dept B Save Creation of cost Element group: FI : Account groups Personnel cost CO:Dept wise personal cost or Administration Create cost element group personnel and assign 400100 -400199 : BILHYD PROD

400100 salaries 400101 Wages 400102 Bonus 400103 Staff welfare and Administration 400300 Rent 400301 Telephone exp 400302 Petrol exp

Create cost element group administration and assign 400300-400399

In the report center Dept A Dept C Or Cost center GRP Cost element Or Cost element GRP personnel administration

Path: Accounting Controlling-Cost center accounting-Master data-Cost element group Create (Transaction code: KAH1) Cost element group name : BILADMIN Enter Description : Administration expenses for BIL Select insert cost element button (Shift+F4) (Edit Cost element Insert cost element)

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From 400300 to 400399 Save To enter exchange rate for type M for INR to EURO (Tr.Code is OB08) Select new entries button Exchange rate type Valid from From currency To Direct quotation Select save button or Ctrl+S Press enter to save in your request Posting of transaction in FI Transaction code:F-02 Give the document date Type Company code Posting key Account Enter Give the amount Cost center Text One more expenditure Post key :40 Account :400300 Rent account Enter Amount :100000 Cost center : Dept A Text : Rent posting Posting key : 50 Account :200105 SBI current account Enter Amount :* Business area :BILH Text : Expenditure posting From the menu select Document Simulate : Todays date :SA :BIL :40 :400100 salaries account :500000 : Dept A :Salaries posting : M (Average rate) :01.10.2008 : INR : EUR :0.02

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Select save button or Ctrl+S To view cost center wise report: Path: Accounting Controlling-cost center accounting Information system-Report for cost center accounting-Line items Cost centers: Actual line items (Transaction :KSB1) Cost center select Dept A (if you want change the posting dates) Select execute button Keep the cursor and the first line item Select document button Select back arrow Select change layout button (Ctrl+F8) Select Document no.under column set Select value in reporting currency under displayed columns Select left arrow or show selected filed button Select reference document no.under column set Select value in report current under displayed columns Select left arrow Select business transition under column set Select document no. under displayed columns Select left arrow Enter To view co documents: Path :Up to reports for costs center accounting path is same -Line items Co documents :Actual costs (transaction code is KSB5) Document no. :1 to 100000 Execute Select folder button for document no.1

Report co line items: Business transaction RKU3 FI doc.13

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001

400100 Salaries

500000 Dept A

150000 Dept B 50000 Dept C

Report co line item 002 400300 Rent 003 200105 SBI

100000 Dept A 600000

Report co line item Transfer document wise /line item wise , transfer line item wise No FI document will be generated Only document will be generated Path: Accounting Controlling-Cost center accounting Actual postings-Report line items-Enter (Transaction code is KB61) Select document no. :13 Company code :BIL Fiscal year :2008 Execute Double click on line item no.1 Amount under new account assignment 150000 Cost center :Dept B Select new item button Select next button Amount under new account assignment 50000 Cost center : Dept C Save Go and see the cost center report KSB1 Give the cost center Select execute button To view cost element wise to total Select cost element column Select sub totals button (Note:That is dues cost element wise total) Repot costs (Business transaction RKU1) This is used when we split a cost center in to number of cost centers or wrong cost center postings. No FI document will be generated Only CO document will be generated Transfer cost element wise (GL account wise) Dept A

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Path : Accounting-Controlling-cost center accounting Actual postings-manual reporting of costs Enter (Transaction code is KB11N) Cost center (old) : Dept A

Cost element 400100 Salaries Amount Cost center new :100000 : Dept C : Dept A

One more cost center (old) Cost element Amount Cost center (new) Enter Select save button or Ctr+S Period lock:

:400300 Rent :25000 : Dept C

A) Transaction which effect FI and CO eg:COIN B) Transaction which effect only CO Eg.RKU3, RKU1 C) Transaction which effect only FI Eg.Debit balance sheet and credit balance sheet

FI To open No check To open

CO To open To open No check

Sept .08 March

Oct 2008 to March 2009

An expenditure posting in FI for September. We cant post since periods are not open. Path: Accounting Controlling-cost center accounting-Environment Period lockchang (Tr.code is OKP1) Controlling area Fiscal year Select actual button Select period Select lock period button :01 : BIL :2008

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Save Set controlling area :(OKKS): Path :up to Environment the path is same Set controlling area Give the controlling area :BIL Enter Real time integration of controlling with FI on line reconciliation ledger This is used when we get for 2nd scenario (no.of company codes having one controlling area ) all the company codes should use same Char of Accounts. Planning cost center wise Path :Accounting Controlling cost center accounting Planning Cost and Activity inputs Change (KP06) Version From period To period Fiscal year :select 0 (Original budget) :1 :12 :2008

Select next page or page down button Cost center group Cost element From Cost element To :BILHIER :400000 :499999 Form Bsed If we select from based radio button The cost element list in a available on screen plant against cost elements

Free If we select radio button We have to select cost element from the drop down list and plan against the Climents Select form based radio button Select overview screen button

For cost element 400100 Plan Fixed cost 1500000 Distribution key 1 Equal distribution Select cost element 400100 From the menu select Goto Period screen Select back arrow 22

Fro cost element 400300 Plan fixed cost 960000 Distribution key 1 To plan for Dept B Select next combination button To go back to previous dept select previous combination button Save

To view variance report cost center wise Path :Accounting Controlling-Cost center accounting Information system Reports for cost center accounting Plan /Actual comparisons Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611) Controlling area Fiscal year From period To period Plan version Cost center Value Execute Keep the cursor on Salaries A/c actual costs amount Select call up report button Double click on cost centers : Actual line items keep the cursor on the first line item. Select document button :BIL :2008 :10 :10 :0 :Dept A

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ONLINE RECONCILIATION LEDGER Reconciliation used when when number of company codes having one controlling area 2nd Scenario It can be at controlling area All the company codes should use the same Chart of Accounts due to online reconciliation ledger, it generated in a document in FI BIL Controlling area | -----------------------------------------------------------------------| | Company code BIL company code BSL | | ----------------------------------------------------------------------| | | | | | Dept A Dept B Dept C Dept X Dept Y Dept Z

If salaries paid and posted FI at (F-02) Salaries A/c ---------------------------------100000 | | Out of 100000 salaries 20000 belongs to company code BIL If we use the reconciliation account at cost center level and the 20000/- is transfer to company code BSL (Dept X) it passes the entry in financial automatically Here Reports at No FI records In BIL Books BSL Dr 20000 To Salaries a/c 20000 In BSL books

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Salaries account To BIL a/c

Dr 20000 20000

Customization at Finance: To copy company code BIL customization including accounting to BSL Path :SPRO-Enterprise structure Definition Financial accounting Edit, copy, Delete, Check company code(T.Code EC01) Double click on copy, delete, check company code From the menu select organization object copy organization object From Company code To company code Enter Select Yes for the message (for copy the GL accounts) Select No button allocate a different local currency Ignore the message press enter Select create request button Short description :Customization for Birla Steel Limited Press enter Enter once again to saving the request Go on press enter till you got the message company code BIL copied to BSL with out 75 number range object Ignore the message press enter Select back arrow Double click on edit company code data Select position button Give the company code Enter Select company code Select address button change the company name to : Birla Steel limited Enter : BSL :BSL :BIL : BSL

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save and Save in your request button Assign company code to company Path :SPRO-Enterprise structure-Assignment Financial accounting-Assign company code to company Select position button Give the company code : BIL Enter For the company code :BSL assign BIL(group name) Select save button or Ctrl+S Press enter to save in your request Document type SA should allow inter company postings: (OBA7) Select type : SA

Select details button Select inter company postings check box Save Press enter to save in your request Creation of GL Masters FS00 BIL Books 1) FI/CO reconciliation account under only expediter group which should not be a cost element 400150 Personnel group 2) Birla Steels limited, current assets, Loans & Advances 200160 Birla Steel Limited BSL Books 1)FI/CO reconciliation account under any expenditure group which should not be a cost element 400150 personnel group 2)Birla Industries Limtied current Assets, Loans & Advances 200161 Birla Industries Limited

Same chart of accounts BIL chart of accounts BIL BSL chat of accounts BIL When we use same chart of accounts, account description should be same in all the company codes. In BSL books If we create account No.200160 It takes Birla Steels Limited- we can not crate our account in our books. Creation of GL masters FS00

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Give the GL account no. Company code Select with template button Give the GL account o. Company code Enter

:400150 :BIL

:400100 Salaries : BIL

Change short text & GL account long text to FI/CO reconciliation account Select create / bank /interest tab Field status group change to ICCF CO < -> FI reconciliation posting Save Give the GL Account No.200160 Company code Select with template button Give the GL Account No.200100 Cash A/c Company code Enter Select type/Description /tab Change short text GL account long text to BIRLA STEEL LIMITED Select create / Bank/Interest tab Filed status group change to G067 Deselect relevant to cash flow check box Save Give the GL account No.400150 Company code Select with template button Give the GL account 400150 Company code Enter & Save Give the GL account 200161 Company code Select with template button :BSL :BIL :BSL :BIL : BIL

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Give the GL account 200160 Company BIL Enter Select type / Description tab Change short text +GL long text to Bila Industries limited Save Prepare cross company code Transaction (Transaction code is OBYA) Path :SPRO-Financial accounting-GL accounting Business transactions-Prepare cross company code transactions Company code 1 BIL Company code2 BSL Enter Posted in BIL cleared against BSL Debit posting key :40 Account debit :200160 ( Birla Steel Limited) Credit posting key :50 Account credit :200160 Posted in BSL Cleared against BIL Debit posting key :40 Account debit :200161 Bilra Industries Limited Credit posting key :50 Account credit :200161 Save Press enter to save in your request CO customization ( tr code is OKKP) Maintain controlling area Assign company BSL to controlling area BIL Select controlling area Select details button Company code to controlling area: Select cross company code cost accounting Reconciliation ledger document type :SA (GL accounts document) :BIL

Double click on activate components / control indicators folder Select company code validation check box

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Double click on assignment of company codes folder Select company code Select copy as button Change the company code to BSL Enter & save Ignore the warning message press enter Activate reconciliation ledger (Tr code KALA) Note: Follow through path Path:SPRO Controlling Cost element accounting-Reconciliation ledger-Activate deactivate reconciliation ledger Double click on activate reconciliation ledger Controlling area Select Execute button Ignore the warning message press enter Define adjustment accounts for reconciliation posting Same path Double click on define accounts for automatic postings Select change account determination button Save Reconciliation account: Save Press enter to save in your request FI CUSTOMIZATION Define variant for real time integration: Path :SPRO-Financial accounting (new) Financial accounting global setting (new) Ledger-Real time integration of controlling with financial accounting Define variants for real time integration Select new entries button Variant for real time integration B1 Give the account no.400150 FI/CO (Tr code is OK17) :BIL :BIL

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Select real time integration active check box Select account determination active check box Key date active from :01.04.2008 Document type Ledger group (FI) Text variant for :SA :0L :BIL

Select cross company code check box Select cross business area check box Select cross profit center check box Save Press enter to save in your request Assign variants for real time integration to company code: Same path. Select new entries button Company code Variant Company code Variant Save Press enter to save in your request Creation of cost center for company code BIL (KS01) Give the cost center department X Valid from To date :01.04.2008 :31.12.9999 :BIL :B1 :BSL :B1

Reference cost center :Dept A Controlling area Enter Change the name to :Dept X :BIL

Change the description to cost center dept X

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Change company code to Select save button or Ctrl+s

BSL

Ignore the warning message press enter Repost costs (F-02) Cost center old Cost element Amount Cost center new Dept Save :Dept A :400100 Salaries :20000 X

To make text filed optional for field status group G004 cost accounts(Tr.code is OBC4) Select field status variant for BIL Double click on field status groups folder Double click field status G004 Double click on General data Text make it optional entry field Press enter to save in our request Go and see the FI documents (Tr.code is FB03) Select document list button Give the company code Enter the date :From date Execute Double click on document no. Select back arrow Chang the company code to BSL Execute Double click on document no. :BIL To Date

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CROSS COMPANY CODE POSTINGS

Company code

:BIL

BSL

Outstanding expenses of BSL paid by BIL BSL Dr To Bank 25000 25000 Outstanding 25000 To BIL25000

Paying company code : BIL Credit Bank Debit outstanding exp Use the Transaction code :F-02

:BIL 25000 :BSL 25000

Give the document date :Todays date Type :SA Company code :BIL Posting key :50 Account no. :200105 SBI CA Enter Amount :25000 Business area :BILH Text :outstanding expense payment on behalf of BSL Posting key :40 Account no :100500 out standing exp. New company code :BSL Enter Amount :* Business area :BILH Text :+ From the menu select document Simulate Double click third line item Business area :BILH Text :+ Select next item button

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Business area Text Select save button or Ctr+S Posting by Company code Cross company code no. FI posted by Company code Cross company code no.

:BILH :+

:BIL :15

08

:BSL :2 08

By viewing the cross company code document number We know which company code has initiated the posting. Select continue button Accrual orders (Imputed cost calculation) This is used for month end provision only in CO This is used for irregular expenses like Bonus Cost element category should be 3 Accrual/ Deferral per surcharge Define CO.No.range in interval for business Transaction :KAZ1 Actual cost center accrual

FI Month end provision 1. Accrual / Deferral document A. Bonus provision for Nov 30.11.2008 Bonus A/c To Out standing exp. B. Reverse next month 1st 01.12.2008 01.12.2008 Outstanding Exp. To Bonus A/c C. Bonus provision for Dec. 31.12.2008 Bonus A/c To Out standing exp 2. Open item management A). Bonus provision for Nov. 30.11.2008 Bonus A/c To Outstanding exp. B). Bonus provision for Dec. 31.12.2008 Bonus To Outstanding exp

Dr.10000 10000 Dr.10000 10000 Dept A Dept A

Dr 20000 20000 Dept A

Dr10000 10000 Dr.10000 10000 Dept A Dept A

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Month end provision Number of companies will not prepare profit & loss and Balance sheet every month, the will not make provision in the books every month in year end, companies follow accrual basis of accounting. They make provisions for the whole year. Expenditure for all the months Expenditure for March Less (other than March) More

In SAP when we take production an accounting entry will be generated automatically Finished goods valuation will be based on costs for the month. Stock valuation will be accrual orders Accrual orders Create overhead structure Salaries 100000 Bonus -10% on salaries 1000 Lower in all month other than March Higher in March

Debit cost center credit cost center Dep Dummy (No accounting entry) Dept A 1000 allocation to Dept A costs will be allocated to production orders There by Dept A will be zeroproduction valuation will be correct.

In the month end Bonus

Dept Dummy Bonus

1000

In the year end in FI when we make bonus provision for the whole year. 31.03.2009 Bonus A/c Dr To Outstanding 1200000 1200000

Dept Dummy

Dept dummy values in the year end

31.03.2009 Dept dummy

1200000 ======

April to March 10000*12 = 120000 =====

In the year end Dept dummy values will be zero.

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Creation of GL master bonus account personnel cost (FS00) group:Give the GL Account No. :400105 Company code :BIL Select with template button Give the GL account no. :400100 (salaries) Company code :BIL Enter Change short and GL account long text to Bonus account Save Select edit cost element button (F8) Valid from date :01.04.2008 to 31.12.9999 Enter Cost element category :Select 3 accrual deferral per surcharge save Creation of cost center Dept dummy (KS01) Give the cost center Reference cost center Controlling area Enter Change name to Dept dummy Change description to cost center: Department dummy Select save button Ignore the warning message press enter Maintain overhead structure: Path:SPRO-Controlling Cost element accounting-Accrual calculation percentage method-maintain overhead structure (Transaction code is KSAZ) Select create over head structure button (F7) Over head structure :BIL1 Description :BIL overhead structure Select save button Row Base 10 B1 Enter Give the name salaries Select create button : Dept dummy : Dept A :BIL

35

Row O/H rate (Over head rate) Description 20 B2 Bonus Enter Give the name Bonus Dependency :KRS1(controlling area) Select create button Save Ignore the message press enter Keep the cursor on overhead structure BIL1 Select assignment button (F5) Controlling area :BIL Select actual accrual radio button Select continue button Valid from 1 2008 valid to 12 overhead structure BIL1

FR

To 10

CR 10

B3

2008

Save Double click on overhead structure BIL1 Keep the cursor on B1 From the menu select Goto calculation base From cost element 400100 Save Kept the cursor on B2 From the menu select Goto overhead rate Valid from 1 2008 Save From 10 Valid to 12 2008 To 10 Actual overhead 10% Crdit B3

Keep the cursor on B3 From the menu select go to credit Company code Business area Valid to Cost element Cost center Save :BIL :BILH :12 2008

:400105 :Dept Dummy

36

Define CO.no range interval for the business transaction KAZ1-Actual cost Center accrual:(Transaction Code KANK) Give the controlling area Select maintain group button Double click on KAZ1- Actual cost center accrual Select CO.No range interval for BIL check box From the menu select Edit-Assigned element group Save Ignore the warning message press enter 1. Posting of salaries for the month of August F-02 Give the document date end posting date :03.08.2008 Date Type Company code Posting key Account no. Enter Ignore the warning message press enter Amount Cost center Text Posting key Account no Enter Amount Business area Text :* :BILH :+ :100000 Dept A :Salaries posting :50 :200105 SBI current Account :03.08.2008 :SA :BIL :40 :400100 Salaries A/c :BIL

From the menu select document Simulate and save Accrual calculation (KSA3)

37

Accounting Controlling Cost element accounting-Actual postings Accrual calculation select cost center radio button give the cost center : Dept A period :5 fiscal year :2008 deselect test run check box select details list check box Execute Select next list level button Go and see the cost center report KSB1 Give the cost center Posting date Execute Select back arrow Give the cost center Execute Bonus provision in the year end in FI Transaction F-02 Give the document date & Posting :31.03.2009 Type :SA Company code :BIL Posting key :40 Account no. :400105 bonus account Enter Ignore the warning message press enter Amount :10000 Cost center :Dept dummy Text :Bonus provision for the year 2008-09 Posting key :50 Account :100500 outstanding exp. Enter Amount :* Business area :BILH Text :+ Document Simulate and save Go and see the cost center report KSB1 Give the cost center :Dept dummy : Dept dummy :Dept A :01.08.2008 to 31.08.2008

38

Posting date Execute

:01.04.2008 to 31.03.2009

STATICALLY KEY FIGURES (SKF) This is used as a basis for allocation of costs from one cost center to other cost centers. Eg. Employee / Area/ Telephone calls Dept C Dept A Dept B (service Dept) (Production departments) Salaries 500000 No.of employee of A and B Rent 100000 Sq.meter are of A & B Telephone Exp25000 No.of telephone calls of A & B Enter CO. No range interval for the business transaction. RKS (Enter statistical key figures) SKF category Fixed Total Fixed If we choose fixed, values To SKF are common for all months in the year, if we dont make changes in between Eg: Employee / Area Total If we choose total We have to enter values for SKF, for each and every month Eg: Telephone calls

No.of Employees April 2008 May 2008 June July Aug Sep Oct Dec Jan.09 Feb March

100 | | | | | | | | | |

100 | | | | | 150 | | | |

Aprl 2008 May June July Aug Sep Oct Dec Jan 2009 Feb March

No.of Telephone calls 1000 1500 2000

39

Define co.no range interval for the business transaction RKS-Enter Statistical key figures Transaction Code is (KANK ) Give the controlling area Select maintain groups button Double click on RKS Select Co.No.range interval for BIL check box From the menu select Edit Assignment element group. Save Ignore the warning message press enter. Create Statistical key figures Path :Accounting Controlling cost center accounting master Data-Statistical key figures Individual processing Create (Tr.Code is KK01) Give the statistical key figure Enter Give the Name :Employee :EMP : BIL

Statistical key figure unit of measurement : Select EA each Key figure category :Select fixed values under radio button Save Path : Accounting Controlling Cost Center accounting actual postings-statistical key figures-Enter (Tr.code is KB31N) Received cost center Statistical KF Total quantity Received cost center Statistical KF Total quantity Save Period end closing In the month end, we allocate costs from one cost center to other cost centers : Dept A : EMP :500 : Dept B :EMP :250

40

Dept C (Service department) Salaries Wages Rent 500000 300000 50000

Dept A Dept B (Production departments) no.of employee of A and B No.of employee of A and B Percentage basis

Basis of allocation can be percentage method statistical key figures method /activity type (machine hour / labour rate)

Allocation methods: 1. Assessment : A) Transfer primary cost postings and secondary cost postings. Dpt X Dept C Dept A Dept B Wages 100000 Salaries 500000 Salaries 400000 Salaries 300000 Wages 300000 Rent 50000 Add all 85500 Add all from C 95000 10% All from Dept X 100000 -----------------------------Less 950000 1255000 395000 ===== ======= ======= Allocation Primary cost postings Secondary cost postings B) Receiving cost centers cant track original cost element Dept A and B will not show the transfer value how much salaries wages and rent. C) Define Co.No.range interval for business transaction RKIU actual overhead assessment. 2. Distribution A) Transfer only primary cost postings B) Receiving cost center can track original cost elements. C) Sender should be only cost center D) Define Co.No.range interval for the business transaction RKIV actual overhead distribution. 3. Periodic reposting: A) Transfer only primary cost postings B) Receiving cost center can track original cost elements. C) Sender can be a cost center or interval order. D) Define Co.No.range interval for the business truncation. RKIB periodic reposting.

41

4. Indirect activity allocation. A)Transfer only primary cost postings. B) Receiving cost center can track original cost elements. C) Sender should be only cost center. D) Transfer quantities as well as values. E) Define Co.No.range interval for the business truncation. RKIL Indirect activity allocation . Which over method we follow, we have to create cycles. When the allocation basic is different for the cost elements in the cost center, we have to create number of cycles for number of segments for a cycle. Dept C (Service Department) Salaries Wages Rent Option 1: Cycle 1 (Salaries and wages allocation) | Segment 1 Option 2 Cycle 2 (Rent allocations) | Segment 1 500000 300000 50000 Dept A Dept B (Production departments) No.of employees of A and B No.of employees of A and B Percentage basis

Cycle 1 | ---------------------------------------------| | Segment1 Segment2 (Salaries and wages allocation) (Rent allocation)

42

ASSESSEMENT
1. Creation secondary cost element : i.e (that is) assessment cost element : Path: Accounting Controlling Cost element accounting-Mater data-Cost element Individual processing Create secondary (KA06) Give the controlling area Enter Cost element Valid from Enter Name and description Cost element category Save 2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead assessment Use the Truncation code :KANK Give the controlling area Select maintain groups button Double click on RKIU Select Co.No.range interval for BIL check box From the menu select Edit Assignment element group. Ignore the message press enter Creation of assessment cycle: Accounting Controlling Cost center accounting-Period and closing Current settingsDefine assessment (Tr.code S_ALR_87005742) 43 :BIL :Assessment cost element. :42 (Assessment ) :1000000 :01.04.2008 to 31.12.9999 :BIL

Give the cycle :BIL1 Start date :01.04.2008 Enter Text : Assessment cycle Select iterative check box. Select save button or Ctrl+S Press enter to save in your request Select iterative check box Dept C Dept A Salaries 500000 Dept B Less :Allocation 500000 Dept Z -------0 Add: Allocation 90000 Less :Allocation 90000 ------0 Add: Allocation 1800 Dept Z Wages Add: Allocation

60% 300000 54000 30% 150000 27000 10% 50000 9000

Less : Allocation

400000 50000 -------450000 450000 ------0 ====

Dept X Dept Y Dept C

50% 30% 20%

225000 135000 90000

4500 2700 1800

We have to run number of items to make both cost center values zero. If we select interactive check box, system will run number of items automatically till both cost center values become zero. Select attach segment button. Segment name Description Assessment cost element Sender rule Share in % : Segment 1 : Salaries allocation :select 1000000 :select posted amounts :100

Select actual value origin radio button Receiver rule :Select variable portions

44

Variable portion type Select sender / receivers tab Sender cost center Under Cost element

:Select actual statistical key figures

:Dept C :400100 (Salaries a/c) :BILHYDPROD

Under Receiver cost center group Select receiver tracing factor tab Statistical key figure :EMP

Select receiver weight factors tab Select save button or Crl+S Press enter to save in your request Select attach segment button Segment name segment2 Description Assessment cost element Sender rules Sharing in % :Rent allocation :1000000 :Posted amount :100%

Select actual value origin radio button Select receive rule Select senders/ receivers tab sender cost center Cost element Receiver cost center group :Dept C :400300 (Rent ) : BILHYDPROD :Fixed percentages

Select receiver tracing factor tab Dept Dept Save Press enter to save in your request Go and see the cost center Report (Tr code is KSB1) Give the cost center Posting date Execute Select cost element column :Dept C :01.10.2008 to 31.10.2008 A B 70 30

45

Select sub totals button Dept C Salaries A 1500000 500 100000 25000 70 17500 B No.of employees 250 50000 Percentage basis 30 7500

Rent

Execution of assessment cycle: Path :Accounting Controlling Cost center accounting Period end closing-Single functions-Allocations Assessment (KSU5) Give the period Fiscal year :7 (October) :2008

Deselect text run check box Select details list check box Cycle select Execute Select receiver button :BIL1

46

INTERNAL ORDERS This is used to view costs for a specific task. Eg. A) Vehicle wise running expenses Management has to task decision whether to sell the (or) keep the vehicle in company A) petrol expenses for the vehicle B) Repairs to the vehicle

It we take GL accounts in FI we will not create each vehicle wise petrol expenses and repairs account. In cost center accounting vehicles will be under administration cost center and the petrol expenses repairs and administration expenses will be posted to administration cost center. By creating vehicle as an internal order we can get the costs. B) Telephone expenses: If we want to know telephone wise expenses in FI we will have one account for all telephones. If we take cost center It will be entered in administration cost center - We can not get telephone wise expenses directly. By creating telephone as an order we can get telephone wise expenses. C) Production order costs In a month no. of production orders will be executed. Some production orders consume more raw material and same production orders consume less raw material. If FI we have only GL account raw material consumption We dont know order wise consumption. By crating production order, we can get order wise costs. Exhibition costs Company is conducting an exhibition Salesmen salaries Conveyance Advertisement Discounts One account Different account Different account Different account

D)

47

We don't know the exhibition costs by creating an order we can get exhibition costs

Orders will be of 2 types 1)Real orders Settlement is possible We can settle order

2)Statistical orders settlement not possible statistical orders are used for decision making

Cost Center (Internal settlement) From Co to Co GL Accounts Assets (External settlement ) (From CO to FI) When we transfer from cost center To cost centers allocation by assessment / Distribution periodic reposting / Indirect activity allocation. When we transfer from Internal order settlement. Eg. Telephone expenses Dr 50000 Cost center Dept Order Tel no.66110883 To Bank 50000 The cost will be allocation to production orders from CO In the production order valuation we cant take.(50000+50000) We have to take only one time 50000 When we are posting to no. of cost objects are will be real and others will be statistical. At the time of order creation there is a statistical order check box. A) When we select statistical order is statistical order check box. Order is statistical (Automatically cost center will be real) B) If we dont select statistical order check box Order is real (Automatically cost center will be statistical ) Statistical order : Telephonewise expenses order we create as statistical order. Telephone expense To Bank Dr 50000 50000 Cost Center Dept A Cost center Dept A Order Telephone no.66611983 Statistical

To

48

Telephone expenses 50000 Allocation to paid order 50000 Cost center Dept A Zero In the month end we allocation costs from Dept A to production orders there by cost center Dept A will be zero. Order telephone no.66611983 Telephone expenses 50000 Management can see telephone wise expense at any point of time afterwards. Suppose we create order as real order Telephone expenses Dr 50000 To Bank 50000 Cost center c data Telephone Expenses Telephone expenses

Cost center Dept A order telephone no.66611983 Real

50000 50000

Order Telephone no.6661987 Allocation to production 50000

Order will be zero In the month end we allocate cost from order telephone no.66611983 to production order there by order will be zero. Afterwards management cant see telephone wise expense. Creation of order types: Path : SPR O Controlling Internal orders order master data-Define order types (KOT2_OPA) Select new entries button Order category Enter Order type Description Planning profile Object class :BILT :Telephone orders for BIL :select 000001 (General budget /plant profile) :Select Over head cost :Select 01 Internal order (Controlling)

Select release immediately check box Save We get message no.range not processed Ignore the message press enter Select assign /change interval button beside no.reage interval

49

Double click order type

:BILT

Select motor pool A-ZZZZZZZZZZZZ(External) From the menu select Edit Assign element group Save Ignore the message press enter Creation of filed status group by making cost center and internal order required entry fields (OBC4) Select field status variant Double click on field status group folder Select field status group G004 cost accounts Select copy as button Change the filed status group to G002 Change the text to cost accounts (CC & IO required) Enter Save Press enter to save in your request Double click on G002 Double click on additional account assignment CO /PP order make it required entry field. Save Creation of GL master telephone expense (FS00) Give the GL account no.400305 Company code :BIL CC=Cost Center IO =Internal order :BIL

Select with template button GL account 400300 Rent account Company code Enter Change short text and GL a/c long text to Telephone expenses Select crate / Bank/Interest tab :BIL

50

Change the filed status group to G002 Save Select edit cost element button Valid from date Enter Cost element category Save Creation of Internal orders: Path :Accounting Controlling-Internal orders-Master data-Special functions Order Create (Tr code is KO01) Order type Enter Order no. Description Company code Business area Select control data tab Select statistical order check box Save One more order Order type Enter Order Description Company code Business area Select control data tab Select statistical order check box Save :BIL66611984 :Telephone order no.66611984 :BIL :BILH :BILT :BIL 66611983 (Telephone no.) :Telephone order no.66611983 :BIL :BILH :Select BILT :Select 1 :01.04.2008

51

Creation order group Up to master data the path is same Order group Create (Tr code is KOH1) Give the order group name :BILHYDTEL Enter Description :Hyderabad order group (GRP)for BIL Select insert order button(Select menu bar Edit Order Insert Order) Select to orders :BIL66611983 :66611984 Save Posting of transaction in FI (F-02) Document date Type Company code Posting key Account no. Enter Give the amount Cost center Order Text Posting key Account no. Enter Amount Business area Text :* :BILH :+ :100000 :Dept A :BIL66611983 :Telephone expenses :50 :200105 (SBI current account ) :Todays date :SA :BIL :40 :400305 Telephone exp

From the menu select Document Simulate and save To view internal order wise report Path :Accounting Controlling-Internal order-Information system-Reports for Interval orders -Line items Order -Actual line items-(Tr. Code is KOBI Give the order no.BIL66611983 Remove the order group

52

Execute Keep the cursor and telephone expense line item select document button Planning order wise Path :Accounting Controlling Internal orders Planning Cost and activity inputs Change (KPF6) Version :0 From period :8 (November) To period Fiscal year :8 :2008

Select next page or page down button Give the order no. Cost element :BIL66611983 :400305 Telephone expense

Select from based radio button Select view screen button Cost element Total plan cost Select save button or Ctrl+S To view variant report order wise Path :Accounting Controlling-Internal order Information system-Reports for internal order-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993) Controlling area Fiscal year From period To period Pant version Order values Execute Real orders: They are used for vehiclewise expenses Petrol expenses Dr 50000 Order no.AP9Z1234 :BIL :2008 :8 (Current month) :8 :0 :BIL66611983 :400305 :75000

53

To Bank In the month end:

50000

Cost center Dept A Cost center Dept B Cost center Dept C Settlement can be percentage basis / ratio basis /Amount basis Order no.AP9Z1234 Settle to

Petrol expenses

50000

Order No AP9A1234 Allocation Dept A Dept B Dept C

------50000 ==== Order will be zero Petrol expense To Bank Dr 50000 50000

25000 15000 10000 -----50000 ====

Cost center:Common Order No.AP9Z1234 Statistical

In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment / Distribution / Periodic posting /Direct activity allocation.

Petrol Expenses

Cost center common 50000 Allocation to Dept A 25000 Dept B 15000 Dept C 10000 --------------50000 50000 ==== =====

Cost center will be zero Order no.AP9Z1234 Petrol expense

50000 =====

Management can see vehicle wise expenses at any point of item afterwards. Creation of filed status group by making only internal order required entry filed (OBC4)

54

Select filed status variant

:BIL

Double click on filed status group folder Select field status group G002 Select copy as button Change field status group to G010 Change the text to cost accounts (IO required ) Enter and save Press enter to save in your request Double click on G010 Double cock additional account assignments Cost center make it optional entry field Save Creation of GL master petrol expense under administration group (FS00) Give the GL Account no. Company code Select with template button Give the GL account no.400300 Rent account Company code Enter Change short text and long text to petrol expenses Select create/bank /interest tab Field status group Save Select edit cost element button Valid from date Enter Cost element category Save Creation of secondary cost element i.e. Statement cost element (KA06): :01 :01.04.2008 :G010 :BIL :400310 :BIL

55

Give the cost element :1000001 Enter Name and description settlement cost element Cost element category :Select 21 internal settlement Save

Maintain allocation structure: Path :SPRO-Controlling Internal orders-Actual posting- Settlement-Maintain allocation structures Select new entries button Allocation structure Text Save Press enter to save in your request Select Double click assignments folders Select new entries button Assignment Text Save Select Double click on source folder From cost element Save Press enter to save in your request Double click on settlement cost elements folder Select new entries button Receiver category Settlement cost element Save :Select CTR cost center :1000001 :400310 Petrol expenses :01 :01 :Vehicle expenses settlement :B1 :B1 :BIL allocation structure

56

Petrol expenses will be settled to cost center by using secondary cost element settlement cost element. Through orders. Maintain settlement profiles: Same path Double click on maintain settlement profiles Select new entries button Settlement profiles Description Allocation structure :BIL1 :BIL settlement profile :B1

Select to be settled in full radio button Double click on CTR cost center Select % settlement check box Select equivalence number check box Select amount settlement check box Under valid receivers For cost center Max.no. distribution rules Residence time Save Press enter to save in your request Rule 1: Order no.AP9Z1234 settle cost center Dept A Petrol expenses 50000 settle cost center Dept B Dept C :Select settlement required :999 :12 months

30000 15000 5000

Rule 2 Order No.AP9Z1234 Settle to cost center Dept A 85% Petrol expenses 50000 Settle to cost center Dept B 10% 5% Order no.AP9Z1234 settle to cost center Dept 4: Petrol exp 50000 Dept 3: Dept 1:

57

Maintain number range for settlement documents: Go through Same path (Tr.code is SNUM) Select maintain groups button Double click on controlling area BIL Select Standard accounting document check box From the menu select EditAssign element group Save Ignore the message press enter Creation of order type (KOT2_OPA) Select new entries button Order category Enter Give the order type Settlement profile Budget profile Object class select :BILV Vehicle order type BIL :BIL1 :0000001 (General budget profile) :Overhead costs :Select 01 Internal order (controlling)

Select release immediately check box Save Ignore the message press enter save in your request Select assign /Change intervals button beside no.range interval Double click on BILV Select motor pool A-ZZZZZZZZZZZZZZ external check box From the menu select Edit Assign element group. Save Ignore the message press enter

Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the transactions code (KANK) Give the controlling area Select maintain groups button :BIL

58

Double click on KOAO actual settlement Select co.no.range interval for BIL check box Form the menu select Edit Assign element group. Save Ignore the warning message press enter END USER AREA: Creation of internal order (KO01) Give the order type :BILV Enter Give the order Description Company code Business area Select control data tab Deselect statistical order check box Select settlement rule button Category Settlement receiver Give the percentage One more Category Settlement receiver Percentage Save Ignore the warning message press enter Posting of petrol exp F-02 Give the document date Type Company cod Posting key :Todays date :SA :BIL :40 :CTR :Dept B :30 :CTR cost center :Dept A :70 :AP9Z1234 :Vehicle no.AP9Z1234 :BIL :BILH

59

Account no. Enter Give the amount Give the order no. Text Posting key Account no. Enter Amount Business area Text

:400310 petrol exp.

:100000 :AP9Z1234 :Petrol exp. :50 :200105 SBI current account

:* :BILH :+

From the menu select menu document Simulate and save Actual settlement : Path :Accounting Controlling-Internal order-Period end closing-Single functionsSettlement Individual processing (K088) Give the order Settlement period Fiscal year Deselect test run check box Select check transaction date check box Select execute button Select details list button Note : Order means overall expenses Eg: Vehicle Expenses Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc :AP9Z1234 :8 (current month) :2008

60

BUDGETING AND AVAILABILITY CONTROL Planning 1. We can plant cost element wise in the order 2. We can do planning period wise in a year (Month wise) 3.Micro level (Lower level) Budgeting 1.Budgeting will be done order wise 2. Budgeting should be done year wise 3. Marco level (High level) For budgeting SAP has given availability control Order no.AP9Z1234 Budget amount 500000 Option 1 Give Warning To the user If actual amount exceeds 85% of budget 425000 Or If the variance is above 20000 i.e actual 5200000 Or Both Whichever activity comes first Or If a actual amount exceeds 70% of budget go for option1 If actual amount exceeds 85% of budget go for option 2 If actual amount exceed 100% of budget go for option 3 When we do budgeting it generate a document We have to give budgeting No. range interval only for 04 (Hard coded by SAP) This is given at client level and not at controlling area level it is not year specify. Note : Order Eg.Vehicle Expenses Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc., Maintain no.range for budgeting: Option2 Option 3 Give warning Give To the user Error1 And inform to Budget manager

61

Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintain no.ranges for budgeting (Tr code is OK11) Select change intervals button Define tolerance limits for availability control Same path Select new entries button Controlling area Profile Tr.group Action Usage Save Press enter to save in your request Specify exempt cost elements from availability control Same path Petrol expenses Repairs Drivers salary is Fixed cost We can specify when we post to drivers salary all with order AP9Z1234 Even if, it exceeds 85% of budget no. message need to be given. It is known expenditure Select new entries button Controlling area :BIL Cost element :400100 Salaries account Save Press enter to save in your request Maintain budget manager Same path Select new entries button Controlling area Order :BIL :BILV :BIL :select 000001 General budget profile :++ all activity groups :select 2 waring with mail to person response :85

62

Object class User name Save

:OCost (Overhead cost) :SAP user (budget manager)

Press enter to save in your request Budgeting order wise (END USER AREA) Path :Accounting-Controlling Internal order-Budgeting-Original budget Change (Tr code is K022) Order Enter For the period :500000 (Budget amount) Over / budget also 500000 From the menu select Extras Availability: Control Activate Save :AP9Z1234

Posting of petrol expenses (F-02) Give the document date Type Company code Posting key Account no. Enter Give the amount Order Text Posting key Account no. Enter Give the amount Business area :* :BILH :350000 :AP9Z1234 :Petrol expense :50 :200105 SBI current account :Todays date :SA :BIL :40 :400310 Petrol expenses

63

Text

:+

From the menu select Document Simulate and save Ignore the message press enter To view in box of the budget manager Path :SAP MenuOffice Work place (Tr code is SBWP) Select inbox folder We get a message accounting document no.

64

PROFIT CENTER ACCOUNTING This is used to view profitability division wise /product wise /location wise if business area is not use in FI Idea scenario Company FI | Company code FI | Business area FI (Location) | ---------------------------------------------------------------------------------------| | | | Steel Cement Pharma Co-profit center Division Division Division Accounting | | Product wise Co profitability Analysis Option 1 Hyderabad location | Steel Cement Pharma Profitability Option 2 HYD | Steel

BGL | cement

MOM | Pharma

Profitability Balance sheet

The advantage of profit center accounting is it derives profit center automatically though derivation rules. A) In case of expenditure Tough cost centers B) IN case revenues Automatic account assignment C) In case of balance Though business area Sheet it items (Applicable for option 2) Eg:a) At the time of creation of cost center assign profit center Dept A-Assign profit center steel

65

b) At the time of posting wages a/c Dr 500000 Dept A To Bank 500000 It updates cost center Dept A as well as profit center steel. We have to create dunning profit center. At the time of posting, when there is no derivation rules, system updates dummy profit center. Transfer form dummy profit center to respective center. Create derivation rule so that future transactions will not go to dummy profit center. They will go to respective profit centers. Set controlling area (OKKS) Path :SPRO-Controlling Profit center accounting-Basic settings-Set controlling area Give the controlling area :BIL Enter Maintain controlling area settings: (OKE5) (Follow through path ) Path :Up to base settings the path is same- Controlling area settings-Maintain controlling area settings Standard hierarchy :BIL

Select elimination of business volume check box Profit center local currency type Select confirm button Select store truncation currency check box Save Elimination of internal business volume Purchase Order | | | | Goods Receipt Material no. Vendor no. Plant Profit center Qty Rate 1 Profit center steel 1234 HYD Steel 1 Kg 100 :Select 20 Controlling area currency

It should no take in steel profit center 100+100 It should take only one time

66

Create dummy profit center Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-Create dummy profit center(Tr code is KE59) Double click on dummy profit center Give the dummy profit center Select basic data button Name Description Profit center group Save Set control parameters for actual date Path : Up to basis settings the path is same Controlling area settings -Activate direct postings-Set control parameters for actual data (Tr code is 1KEF) Select new entries button From year :2008 Select Line items check box Select online transfer check box Save Maintain plan versions Up to activate the path is same Plan version Maintain plan version Select version :0 Plan /Actual Version :BIL dummy :Dummy profit center for BIL :BIL :BIL dummy

Double click on settings for profit center accounting folder Select new entries button Year :2008

Select online transfer check box Select line items check box Exchange rate type Save :B (bank selling rate)

67

Press enter to save in your request Define no. ranges for local documents A) At the time of creation of cost center Assign profit center Dept A-Assign profit center B) At the time of posting Wages A/c 500000 Dept A To Bank 500000 When there is no derivation rule It updates dummy profit center Transfer from dummy profit center To Profit center steel No FI document will be generated No co document will be generated once profit center document will be generated (local) Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings: Actual Define number ranges for local documents (Tr code is GB02) Select maintain groups button Select actual document from direct posting with GB01 check box From the menu select interval Maintain Give the company code Enter Select interval button Year From no To Enter and save Press enter to save in your request Select back arrow Select planned doc.with direct posting with GB01 check box Form the menu select interval maintain Give the company code Enter Select interval button :BIL :2008 :1 :100000 :BIL

68

Year From no. To no. Enter and save Creation of profit center:

:2008 :100001 :200000

Path :Accounting-Controlling-Profit center accounting-Master data-Profit center-Individual processing-Create (Tr code is KE51) Give the profit center Select master data button Analysis period to Name Long text Person responsible Profit center group select activate button (Shift+F1) :01.04.2008 to 31.12.9999 :Steel :Profit center steel :Mr A :BIL :Steel

One more profit center profit center cement select master data button name :Cement long text :Profit center cement person responsible :Mr B profit center group :BIL select activate button Create account groups up to master data the path is sameAccount group create (Tr code is KDH1) Give the account group name Enter Description Select insert account button From :300000 :P & L accounts for BIL :PLITEMS ( Profit & Loss)

69

To Save Select Back Arrow Account groups Enter Description Select insert account button Form A/c To A/c Save Assign profit center in cost center

:499999

:BSITEMS

:Balance sheet accounts for BIL

:100000 :299999

Path :Accounting-Controlling-Cost center accounting-Master data-Cost centerIndividual processing-Change (KS02) Give the cost center Select master data button Give the profit center Select save button or Ctrl+S Ignore the warning message press enter Cost center Enter Profit center Save Ignore the warning message press enter Creation of sales account as revenue element (FS00) Give the GL account no. Company code :300000 Sales A/c :BIL :Cement :Dept B :Steel :Dept A

Select edit cost element button Enter Cost element category :Select 11 Revenues

70

Save

Maintain automatic account assignment of revenue elements Path :SPRO-Controlling Profit center accounting Actual postings-Maintain automatic account assignment of revenue elements (Tr code is OKB9) Select new entries button Company code Cost element Account assignment details Save Press enter to save in your request Select :BIL with cost element 300000 :BIL :300000 Sales A/c :Select 2 Business area is mandatory

Double click on detail per business area /valuation area folder Select new entries button Option 1 HYD location | Steel cement Pharma 300000 HYD Steel 300001 Sales cement HYD Cement 300002 Sales pharma HYD Pharma Option 2

HYD | Steel

BGL | Cement 300000

MUM | Pharma Sales account

HYD Steel BGL Cement Mum Pharma

Business area Profit center Business area Profit center Save

: BILH : Steel : BILB : Cement

Choose addition balance sheet and p & L accounts Applicable for second scenario: Application for second option

71

Same path Select choose accounts (Tr code is 3KEH) select new entries button Account from Account to :100000 :299999

Default profit center :Steel Save Press enter to save in your request Select profit center determination button Select crate step button Step description :Profit center derivation though business area for balance sheet items. Select drop down button under name column Select GSBER businesses area Save Select maintain rule values button Select source field intervals on /off button Account no.100000 To account no.299999 Business area Profit center Account no To account no. Business area profit center Save END USER AREA 1) Planning profit center wise for p & L items Path :Accounting Controlling Profit center accounting Planning cost /Revenues-Change (Tr code is 7KE1) :BILH :Steel :100000 :299999 :BILB :Cement

72

Version select From period To period Fiscal year Company code

:0 :8 :8 :2008 :BIL

Select next page or page down button Profit center Account group :Steel :PLITES

Select from based radio button Select overview screen button Per account no.300000 Sales account Profit center reporting currency :600000 (Minus report currency) For account no.400100 salaries A/c without any sign Save Planning profit center wise for balance sheet items (Only for second scenario) Up to planning the path is same Balance sheet accounts change (Tr code is 7KE3) Version From period To period Fiscal year Company code :0 :8 :8 :2008 :BIL

select next page or page down button Profit center steel Account group :BSITEMS

Select form based radio button Select overview screen button For account :100300 SBI rupee term loan

Profit center reposting currency 20000- with minus sign

73

For 200105 SBI current account profit centers reporting currency 200000 without any sign Save

Posting of cash sales (F-02) Give the document date Type Company code Posting key Account no. Enter Amount Business area Text Posting key Account no. Enter Amount Business area Text :* :BILH :+ :550000 :BILH :sales posting :50 :300000 (Sales a/c) :Todays date :SA :BIL :40 :200105 (SBI current account)

Form the menu select Document Simulate and save Posting of salaries (F-02) Document date Type Company code Posting key Account no. Enter Give the amount :475000 :Todays date :SA :BIL :40 :400100 Salaries a/c

74

Cost center Text Posting key Account no. Enter Amount Business area Text Document simulate and save

:Dept A :Salaries posting :50 :200105 SBI current account

:* :BILH :+

To View variance report profit center wise for P & L items Path :Accounting Controlling Profit center accounting-Information systemRepost for profit center accounting-Interactive reporting Profit center group:Plan /actual /variance (Tr code is S_ALR_87013326) From period To period Fiscal year Plan version Profit center values Profit center accounts groups Select execute button To view variance report profit center wise for balance sheet items: Up to interactive reporting the path is same Profit center group: Balance sheet accounts plant / Actual /Variance (Tr code S_ALR_87013336) From period To period Fiscal year Plan version Profit center values Balance sheet account group :8 (Running month) :8 :2008 :0 :Steel :BSITEMS :8 (Current /Running month) :8 :2008 :0 :steel :PLITEMS

75

Execute Transfer of values from one profit center to another profit center One cost center works for no.of profit centers we an assign only one profit center is cost center. In dept A Profit center steel From profit center steel transfer to cement Manual transfer through cycles No.FI document will be generated No.CO document will be generated Only profit center document will be generated. Path :Accounting Controlling-Profit center accounting-Actual postings-Profit center document Enter (Tr code is 9KE0) Layout select 8A-001 document :Profit center /account Select execute button Company code Select Enter screen button Profit center Account no. :Steel :400100 Salaries :BIL

In profit center local currency 500000 (with minus sign) Profit center Account no. Amount Save :Cement :400100 Salaries :500000 (without minus sign)

76

INTEGRATION
Organization structure : FI: Business area Company | Company code MM:- Structure

SD: Structure

Business area | Factory / Sales organization Company code level / | Plants Branch/Port | Regional location | | | Storage locations Raw material / Finished goods Distribution-> Direct sales through /Packing material Channel Agents | | Division Product groups/ products Why we create port as a plant: Keep the material on ship HYD Chennai Factory Port

Customer

Export sale Terms of delivery-FOB (Free on Board) ownership will be transferred once we kept the martial on ship. Business area will be assigned to plants, plants will be assigned to sales organization business area will be assigned to sales organizations. In SD module, combination of sales organization, distribution channel and division One sales area. Sales Area 1 Hyd sales Org. | Sales Area 2 Hyd Sales org |

77

Direct sales | Steel

Through agents | Steel

Movement types: Similar to posting keys in FI 101 Material receipt against purchase order /production order 102/122 Reversal of 101 201 Issue to cost centers 202 Reversal of 201 261 Issue to orders 262 Reversal of 261 521 Production receipt without production orders. 522 Reversal of 521 561 Opening stocks taking 562 Reversal of 561 601 Delivery (sales) 602 Reversal of 601 Difference between 201 and 261 Cost centers Issue material (Movement type 261) Stores items to issue (Mov.type 201) (cost center 201) Dept A Production order 1 Dept B Dept C

Production order 2 Production order 3

Material issue is identifiable to production orders use movement type 261 Material issue is not identifiable to production orders use movement type 201 Transaction key /process key a) BSX b) WRX c) PRD d) GBB Inventory postings Goods receipt /Invoice receipt (GR/IR) Price difference /Production order differences Offsetting entry for inventory postings (i) VBR consumption (ii) VNG Scrapping (iii) BSA Opening stocks (iv) ZOF Production receipt without production order (v) AUF Production receipt with production order (vi) VAY Delivery where sales account is created as revenue element (CO implemented) (vii) VAX Delivery where sales account is not created as revenue element (Co not implemented)

78

(viii) AUA production order differences Eg: 400000 Raw material consumption 200121 Inventory raw material For consumption Raw material consumption Dr To Inventory raw material For GBB For BSX VBR Assign account no.400000 Assign account no.200121

Valuation class: Valuation class determines the GL accounts to be posted automatically. A) Raw materials Local Imported Inter unit purchases Inter company purchases 4 Valuation class B) Stores :Local 2 valuation class C) Finished goods own manufacturing 1 valuation class Valuation grouping code / valuation modifier /Valuation modification key: Company codes Chart of accounts Plants Local raw materials BIL BIL HYD-BGL BGL-MUM RM1 RM2 RM3-RM1 HYD-MUM RM2-RM3 BCL BSL

Incase of purchases, 200121 Inventory raw material local When we follow same chart of accounts for numbers of company codes, Instead of assigning accounts number of times, assign only one time by using valuation grouping code. Valuation Areas Plants HYD BGL BGL MUM HYD MUM Chat of accounts Company code Valuation Grouping X X X X X X

BIL BIL BIL BIL BIL BIL

BIL BIL BCL BCL BSL BSL

79

For X in case of RM local purchases assign account number 200121, inventory Raw material local. This is similar to posting periods in FI A) Define posting period variant B) Assign posting period variant to company codes X X to BIL X to BCL X to BSL

c) Define posting periods for variant X for X1, 2008 12,2008 Material types Raw materials Stores & spares Packing & material Finishing goods Semi finished goods Purchased Produced Trading goods Services Price controls ROH V-Moving average price ERSA V-Moving average price VERP V-Moving average price FERT S-Standard price HALB V-Moving average price S-Standard price HAWA V-Moving average price DIEN purchase price purchase price purchase price Raw materials + Overheads Purchase price Raw material+Overheads Purchase price

Semi finished goods purchased Dept A Dept B Dept C 15 days Sales order To be delivered with in 2 days

Dept D FG Purchase an item where with In 2 days purchase an item Where processing of A,B and C is completed D processing of D

Semi finished goods produced Dept A Dept B Dept C Dept D Issue RM 15 days time Sales Dept got an order for sale where the processing of A and B is completed Take production After completion Of B and sell Trading goods: Purchase FG and sell FG without doing any processing. Services: Plant is having operating capacity No sales orders Job work for others

80

We get job work changes Material Does not belong to us - Material types are similar to account groups in FI - There we create GL masters here we create material masters. - GL master are created under account group where as material masters are created under material type. - Material master is created at plant level-when number of plants are using the same material it will be extended(copied) to other plants. - For materials we can open 2 periods at a time. Oct Nov. When we open Dec.-Automatically Oct will be closed. Where we crate material master We will have number of tabs (Views) Basic data Purchase view Sales view MRP view Quality Ware house management Accounting Costing MM Flow A) Material requisition By production Dept to Stores B) Purchases requisition By stores to purchases C) Call for enquiries, Get quotations and do price comparisons By purchase Dept. D) Create purchase order Vendor number, Material Quality, Rate, Plant, Company code Delivery terms, payment terms, Purchase organization E) Release It is optional It will work through work flow If P.O value is less than Rs.10000 To be released by manager purchases

If P.O value is Rs.10000 and above To be released by GM(Purchases) And less than 100000 if P.O value is 10000 and above To be released by Director Once we save the purchase order, based on the value it goes to the inbox of the command authorized person, till is releases we cant take goods receipt. F) Goods receipt With reference to P.O Inventory RM local DR 100 To GR/IR clearing RM local 100 Balance sheet current asset BSX Balance sheet current liability WRX

81

(Qty in GR*Rate as per P.O) G) Invoice verification-Against PO/GR GR/IR clearing RM local DR 100 Balance sheet CL WRX To party 100 Balance sheet CL From PO, Party no. will be taken i) Raw material consumption RM Consumption Local DR 100 P & L Debit GBB VBR To inventory RM local 100 BS C/A(Current Asset) BSX J) Wages payment Wages A/c DR 20 P & L Debit To Bank 20 BS CA K) Production Receipt At product cost Inventory FG DR 120 BS C/A BSX (FG =Finished goods) To INC/DEC in stocks FG 120 P & L Credit GBB ZOF In case of on production order /CPP module not implement GBB AUF in case of production order (PP module implemented) SD steps L) Delivery At product cost INC /DEC in stocks FG DR 120 P & L Credit GBB VAX If sales account is not created as revenue element (Co not implemented /GBB VAY If sales account is created as revenue element (Co Implemented) To Inventory FG 120 BS C/A M) Sales billing Customer A/c DR 150 BS C/A From sales order, customer number will be taken To Sales 150 P & L credit ERL LCL=Local Inventory FG=Raw material consumption local +wages GR=Goods receipt INC/DEC STK FG=Increase /Decrease stock finished goods P & L account H) RM can local Wages Net profit 100 L)Sales 20 J)INC/DEC STKFG 120 30 K)INC DEC STK FG -120 ------150 === 150 0 ----150 ===

82

Balance Sheet Surplus in P & L Account F) GR/IR CLG RM LCL 100 E) GR/IR CLRG RM LCL a) Sundry creditors RM 30 F) INV RM LCL 100 H) INV RM LCL -100 -100 0 --------0 100 I) Bank -20 j) INV FG 120 K)INV FG -120 0 L)Sundry debtors 150 ----------130 130 === ===

Integration rules A) In material master we specify valuation class B) For valuation class we assign GL accounts based on the nature of transaction C) At the time of material receipt/Issue stores person enters movement type, material number and quantity. Our accounts will be up dated automatically based on accounts assignment to valuation class which is specified in material master Eg: Material no. Valuation Inventory postings BSX GR/IR Clearing (WRX) 100520-GR/IR CLRG RM LOCAL Consumption (GBB VBR) 40000-RM
Consumption-IMP

RM1 (local)

3000 RM local 200121-INV-RM Local Local Raw Material 1. Purchase order Material RM1 Vendor -1234 Qty-100 Kgs Rate 5 Rs Save P.O.No.1 2. Goods receipt with reference to P.O-P.O No.1 Movement Type:101 Debit BSX 200121 Credit WRX Material RM1 Qty 60 kgs Save Material Doc no.200001 200121 Inventory RM local DR 100520 GR/IR CLR RM Local (Qty IN GR *Rate as per P.O) 60*5 Raw material consumption

300 300

83

Movement type 201 Debit GBB VBR Credit BSX 200121 Material RM1 3000 Qty 10 Kgs 400000 RM Consumption LCL DR 50 200121 Inventory RM Local 50 (Qty issued * Moving average rate) Imported raw material 1. Purchase order Material -RM2 Vendor -4567 Qty-1Kg Rate -100 PO No.2 2. Goods receipt- with reference to PO-PO No.2 Movement type:101 Debit BSX 200122 Credit WRX 100521 Martial RM2 3001 Qty 1 Kg Save Material Doc No.200003 200122Inventory RM IMP DR 100 100521 GR/IR CLRG RM IMP 100 (Qty IN GR* Bate as per P.O) 1*100 Raw material returns Material doc no.200003 Movement Material Qty Save 100521 200122 Type 102 Debit WRX Credit BSX 3001 100521 100122

Debit A/c No. 400000

RM2 1 Kg Material doc no.200004 GR/IR CLR RM IMP Inventory RM IMP

DR

100 100

Why SAP does not support purchase accounting why it supports inventory accounting: RM Local raw material 1 Not included in purchase Provision statement RM consumption=Qty Value Opening stock 0 0 0 Add purchase 0 516.50 2 3 Bill received Less stock reported by stores 0 516.50

84

_____________________________ 516.50 516.50 Less :Closing stock 300 300 200 -----------------------------------------Raw material consumption X X X ======================== Wrong wrong wrong 1. Purchase order material no. RM1 Vendor 1234 Qty 100 Kgs Rate 5 Rs Excise 10% CST 2% Other change 1% Material receipt: We get excise invoice to claim cenvat Final invoice many come or may not come. Only excise invoice received Basic price 500 Excise 50 Stores person updates his records with the above data. Issue: Not included in purchase provision statement: Account Dep gets a statement from stores in the month end material received bills not received to make purchase provision. Stores person By mistake he has not included the above item in the purchase provision statement. Account Dept.gets closing stock statement from stores-in the statement he is showing 60 kgs stock at 5Rs.300 Issue2 Closing stock valuation wrong We have received invoice after words in invoice wrong Basic Excise CST2% Other 1% Bill amount 500 50 11 5.5 ------566.50 500 50 11 5.5 -------516.50

--50

Purchase a/c cenvat receivable In the month end stores person sends closing stock statement 60 kgs at Rs.5 Should be value 516.5/100*60=309

85

*Issue less stock reported by stores If this month production is more, profitability will be more. If this month production is less, profitability will be less. Physical stock available -60 Kgs Reporting to accounts only 40 kgs 40*5=200 Inventory accounting 1. Purchase order Material no.RM1 Vendor 1234 Qty 100 Rate 5 Tax code A1 (10% Excise +2% CST) other charges 1% PO no.1 with reference to PO no.1 101 RM1 100

2. Goods receipt Movement type Material Qty Save

Entry will be passed automatically Inventory RM local DR To GR/IR CLR RM Local GR*Rate as per PO

516.50 516.50 Qty in

Store records : Material RM1 Qty :Value Receipt :100 Kgs 516.50 Account records 200121 Inventory RM local 516.50 DR 3. Raw material consumption Movement type 201 Material RM1 Qty 40 Kgs Save Accounting entry will be generated automatically RM consumption local DR 206.5 (516.5) 100*40 To Inventory RM local 206.6 Qty issued moving .AVG price Stores records: Receipt Issue Material Qty 100 Kgs 40 Kgs -----RM1 Value 516.50 206.6 ------

86

60 Kgs

309.9

Accounts records 200121 Inventory RM local 516.50 DR 206.60 DR CL stock value 309.9

Price differences are two types 1)Batch method

2)Moving average method | ------------------------------------------------------| | | Stock fully available Stock partly available Stock no available

1st method Batch method: RM1 PO PR

10 RS

BILL for 12Rs 1.Material Receipt Inv RM local DR 1000 BSX To GR/IR CLR RM LCL/100 WRX 2. Raw Material consumption RM consumption local DR 100 GBB VBR To INV RM local 100 BSX

Batch Qty 1 100 2 50 ----150 10 --140 ----140

Rate 10 40

10

Amount 1000 2000 ----3000 100 ---2900 180 ----3080

3. Invoice verification GR/IR CLRG RM LCR DR 100 WRX INV RM LOCAL DR 180 BSX 90*2 Price diff RM LCL 20 PRD 100*2 To Vendor 1200 form PO vendor no. is taken

Break up 1 90 12 1080 2 50 40 2000 Preparation in P & L account : Raw material consumption : Raw material consumption +/ price difference RM Eg: RMC 100 PD RM 20 ---120 === For the truncation key PRD We can assign raw material consumption account or price difference RM A/c

87

Moving average method: stock fully available RM1 PO Price :10 Qty rate amount Bill qty 100 50 ---150 20 ---Average bill 130 10 40 Final Bill for Rs.12 1. Goods receipt

20

---130

1000 Inv.RM local DR 1000 BSX 2000 To GR/IR CLRG RM LCL 1000 ------ 2. Raw material consumption 3000 RM consumption local DR 400 GBB VBR 400 To INV RM local 400 BSX ----2600 3.Invoice verification GR/IR CLRG RM LCL DR 1000 WRX 200 GR/IR CLRG RM LCL DR 1000 WRX ----2800 INV RM Local DR 200 BSX 100*2 To Vendor 1200 form PO Vendor no.is taken

Consumption rate: Value / Qty 3000/150=20 Next consumption rate Value / Qty 2800/130=21.54 3rd method moving average method: Stocks partly available RM1 PO Price 10Rs Bill for 12Rs 1.Material receipt Rate 10 40 Amount 1000 2000 ----3000 2600 -----400 1. Goods receipt INV RM local DR 1000 BSX To GR/IR CLRG RM 1000 WRX

Qty Bill qty 100 50 --150 130 ----AVBL QTY 20

20

2. Raw material consumption RM comp local DR 2600 GBB VBR

88

---20

40 ---440

TO inv RM local 2600 BSX

3.Invoice verification GR/IR CLR RM LCL DR 1000 WRX INV RM Local Dr 40 BSX 20 *2 Price diff RM DR 160 PDR To Vendor 1200 from PO vendor no.is taken Consumption rate Value / Qty 30000/150=20 Next consumption rate: Value qty 440/20=22.00 Incase of batch method It has checked batch wise for the material. In case of moving average method if has checked material wise. 4th Method-moving average method: Stocks not available safety socks RM1 PO Price Qty 100 50 ---150 150 ---0 Rate 10 40 ---20 10 Rs Amount 1000 2000 -----3000 3000 ----0 Bill for Rs12 1. Material receipt Inv RM local DR 1000 BSX To GR/IR CLRG RM LCL 1000WRX 2. Raw material consumption RM Consume local DR 3000 GBB VBR

Bill Qty

AVBL Qty

To INV RM Local 3. Invoice verification GR/IR CLRG RM LCL DR 1000 WRX Price Diff RM DR 200 To Vendor 1200 form PO vendor no.is taken

Sales and Distribution Flow: 1. Inquiry and quotation: 2. Sales order : Product, Plant, Sales organization, customer no., quantity, rate delivery terms, payment terms. 3. Delivery :With reference to sales order A) Delivery without post goods issue (Delivery without PGI) ownership is not transferred. Eg. Export sales Terms of delivery FOB (Free on board) Hyderabad Factory Delivery without PGI Chennai Port Customer Delivery with PGI

89

No FI document only material document FI document :At product cost

FI document material document

Increase /Decrease in stocks FG DR GBB VAY-If sales account is created as revenue element (Co implemented)1

GBB VAX if sales account is not created as revenue element (Co not implemented) To inventory FG BSX B) Delivery with Post Goods Issue (Delivery with PGI) Eg. Local sales terms of delivery Ex works Hyderabad factory Customer Delivery with PGI Sales Billing: With reference to delivery Customer account DR To Sales SD-Pricing procedure Eg: From R egion To Region Customer Material 1 Andhra Andhra Taxable Taxable From sales order :ERL

2 Andhra Tamilnadu Taxable Taxable

3 Andhra Andhra Non-taxable Non-taxable

4 Andhra Tamilnadu Non-taxable Non-taxable

Basic price Excise % on basic VAT % on Basic+Excise From H sales Condition type:

CST % on basic+ Excise

KOFI (Account assignment-FI) KOFK (Account Assignment CO)

Assignment of accounts

1 Application area

2 Conditi on type

3 Chat of accoun

4 Sales originatio n

5 Account assignment group for

6 Account assignment group for

7 8 Accou nt keys

90

V-Sales & KOFI Distribution V-Sales & KOFI Distribution

ts BIL

HYD

customers 01

materials 03

ERL

BIL

HYD

02

03

ERL

V-Sales & KOFI Distribution

BIL

HYD

01

01

ERF

V-Sales & KOFI Distribution

BIL

HYD

01

03

01Domestic revenues 02-Foreign revenues

03Afflicated company revenues Note :ERS :Sales commission Bank 5000 From customer 5000 Reimbursement of expenses

ERL Sales revenu e 01 Traded ERF goods Freight Reven ues 02 Services ERBRebate s /Tradi ng Discou nts 03 ERS Finished Sales goods Deduct ions

300001 Sales Local own goods 300002Sales exports own goods 300003 Sales local trading goods 400350 Freight Local own goods

MM CUSTOMIZATION MM consultant job 1. Define Plants Path: SPRO-Enterprise structure- Definition Logistic general-Define copy, delete check plant.

91

Double click on define plant Select new entries button Plant Name Factory calendar Save Give the name Country Enter Select create request button Short description Press enter Enter once again to save in the request Define division: Path :Up to logistic General the path is same-Define copy, Delete, check division. Double click on define division Select new entries button Division Name Save Press enter to save in your request :BS (It is a text filed) :Steel Division :MM customization for BIL :BILP :BIL HYD Factory plant :Select B2 or 01 (B2=BIL HYD Factory Calendar) (01=Standard calendar) :BIL Hyderabad factory plant :IN

Maintain storage location Path :SPRO-Enterprise structure Definition- materials management Maintain storage location (OX09) Give the plant Enter Select new entries button :BILP

92

Give the storage location Description Save

:HYD :Hyderabad storage location

Press enter to save in your request

Maintain purchasing organization Same path Select new entries button Purchase organization Description Save Press enter to save in your request Assign plant to company code: Path : SPRO-Enterprise structure Assignment- logistics General Assign plant to company code ( Tr code is OX18) Select new entries button Company code Plant Save Press enter to save in your request Assign business area to plant/valuation area and division Path :Same path -Select plant /valuation area Division button Select new entries button Plant Division Business area Save Press enter to save in your request :BILP :BS :BILH :BIL :BILP :BIR :BIL Purchase organization

93

Assign purchasing organization to company code Path :Up to assignment the path is same Materials management Assign purchasing organization to company code Select position button :Give the purchase org:BILR Enter For BILR for assign company code BIL Save Press enter to save in your request Assign purchasing organization to plant: Same path Select new entries button Purchasing org :BILR Plant :BILP Save Press enter to save in your request Create purchasing groups Path :SPRO-Materials management Purchasing Create purchasing groups. Select new entries button Purchasing group Description Save Press entr to save in your request Define material groups:( OMSF) Path :SPRO-Logistic general Material master-Settings for key fields Define Material groups. Select new entries button Material group :BILC :BIL :BIL RM purchasing group

Material groups description :Chemicals Press enter to save in your request

94

Maintain company code for material management: Path :SPRO-Logistic General Material master-Basic settings-Maintain company code for materials management Select position button Give the comp code Enter Year Period :2008 :7 (October) :BIL

Note : This period enter carefully, if you once enter not modified Select ABP check box (ABP stands for Allow Back Period Posting) Note: September entries allowed Save Ignore the warning message press enter Press enter to save in your request Define attributes of material types: Path:up to the material master the path is same Basic settings Material typeDefine attributes of material types. Select position button Select material type Enter Select ROH Double click on quantity / Value updating folder Select position button Valuation area Enter For BILP select quantity updating, value update check box Save Press enter to save in your request Select back arrow :BILP ( Nothing but plant) :ROH (Raw materials)

95

Select material FERT for finished product Double click quantity / value updating folder Select position button Valuation area Enter For BILP select quantity updating check box value updating check box Save Set tolerance limits for price variance for purchase order Path: SPRO-Material management Purchasing Purchase order set tolerance limits for price variance Select TIKY :PE & SE for company code 1000 Select copy as button Enter the company code to BIL For tolerance key Enter Change the company code to :BIL For tolerance key Enter and save Press enter to save in your request Plant parameters: Path :SPRO-Materials management Inventories management Physical inventory Plant parameters Select plant :1000 Select copy as button Change the plant to BILP Enter and save Press enter to save in your request Set tolerance limits for goods receipt :SE :PE :BILP

96

Path :Up to inventory management and physical inventory the path is same Goods receipt-Set tolerance limits Select tolerance key B1,B2,VP for company code 1000 Select copy as button Change the company code to BIL for B1 Enter Change the company code BIL for B2 Enter Change the company code to BIL for VP Enter and save Press enter to save in your request Maintain default values for tax codes Path: SPRO- Materials management Logistics invoice verification-Incoming invoice maintain default values for tax codes Select new entries button Company code :BIL Save Press enter to save in your request Set tolerance units for invoice verification Path:Up to logistics invoice verification the path is same Invoice block-Set tolerance limits select tolerance key BD, ST for company code 1000 select copy as button change the company code to BIL for BD enter change the company code to BIL for ST save

Define automatic status change

97

Path :Up to the logistic invoice verification the path is same Invoice verification in back ground Define automatic status change Select new entries button Company code Select save button or Ctrl+S Press enter to save in your request Group together valuation areas: Path :SPRO-Material management Valuation and account assignmentAccount determination-Account determination without wizard-Group togather valuation areas. Select position button Valuation :BILP Enter Give the valuation grouping code :X Save Press enter to save in your request :BIL

Define valuation classes: Path :Same path Select valuation class button Select valuation class 3000 Raw materials local Select valuation class 7920 Finished products Select copy as button Change valuation class 3000 to BIL1 Change the description to Raw materials local Change valuation class 7920 to BIL2 Finished product Enter and save Press enter to save in your request

FI consultants job:

98

1. Creation of GL masters FS00 A) Inventory RM local B) Inventory finished goods C) GR/IR clearing RM local D) RM consumption local E) INC/DEC in stocks FG Give the GL account no. Company code Select with template button 200121 BIL

Current assets loans & advances -doCurrent liabilities & Provisions RM Consumption Increase /Dec in stocks

Give the GL account no.200120 Inventory RM Company code Enter Change the short text to Inventory RM local Change the GL a/c long text also inventory RM local Select control data tab Tax category :select * (All tax allowed) :BIL

Select posting without tax allowed check box Select create/Bank/Interest tab Field status group change to G006 Material accounts Save Note :Before post select automatically only check box 200121 Ignore the warning message press enter GL account no. Company code Select with template button Give the GL a/c no.200121 Company code Enter Select type/description tab Change short text and GL a/c long text to inventory FG Save GL account :100520 :BIL :200122 :BIL

99

Company code Select with template button GL account Company code Enter

:BIL

:100500 outstanding exp. :BIL

Change short text and GL account and long text to GR/IR clearing RM local Select control data tab Tax category :*

Select posting without tax allowed check Sort key :014 Purchase order

Select create /bank /interest tab Field status group change to G045 goods/Invoice received clearing accounts Save G/L account Company code :400000 :BIL

Select with template button Give the GL account no.400100 Salaries a/c Company code Enter Select type/description tab Change the account group to RM consumption Change short text and GL account long text to RM consumption local Select create /bank /interest tab Field status group to change to G003 Material consumption accounts Save Select edit cost element button Valid from Enter Cost element category Save :Select 01 :01.04.2008 :BIL

100

GL account Company code

:300200 :BIL

Select with template button Change the GL a/c no.300100 Exchange gain Company code Enter Select type/Description tab Change account group to Increase /Decrease stocks Change short text and GL account long text to Increase/Decrease in stocks FG Select create/Bank/Interest tab Change field status group to G030 change in stock accounts Save *Assignment of accounts for automatic postings Path :Up to account determination without wizard the path is same Configure automatic postings (Tr code is OBYC) (MM to FI Integration ) Select cancel button Select account assignment button :BIL

Double click on transaction BSX inventory posting Give your Chart of Accounts enter Select valuation modifier check box Select valuation class check box Save :BIL

Valuation modified X X Save

Valuation class BIL1 RM local BIL2 Finished products

Account 200121 Inventory RM local 200122 Inventory FG

101

Press enter to save in your request Select back arrow Double click on transaction WRX GR/IR clearing account Select valuation modifier check box Select valuation class check box Save Valuation modifier Valuation class Account no. Save Press enter to save in your request Select back arrow Double click on GBB offsetting entry for Inventory posting Select General modification check box Valuation modifier check box Valuation class check box Save Valuation General modification modifier X VBR (consumption) X X X ZOF (Production receipt without production order) AUF with production VAY (Delivery where sales account is created as revenue element Co implemented) VAX Delivery where is sales account is not created as revenue element CO not implemented Save Press enter to save in your request Valuation class BIL1 RM local BIL2 Finished products BIL2 BIL2 Account 400000 RM consumption local 300200 Increase / Decrease stocks FG 300200 300200 :X :BIL1 RM local :100520 GR/IR clearing local

BIL2

300200

Document types and no.ranges (OBA7)

102

WE WA RE

:Goods receipt :Goods issue :Grass invoice receipt

Tr code is OBA7

Select WE Select details button Number rage

:Goods receipt

:50

Select number range information button Company code :BIL

Select change intervals button Select interval button No.range Year From no. To no. Enter and save Ignore the warning message press enter Select back arrow 3 times Select type WA Goods issue Select details button Number range :49 :50 :2008 :800001 :900000

Select no.range information button Company code :BIL

Select change intervals button Select interval button No.range Year From no. To no. :49 :2008 :900001 :1000000

103

Enter and save Ignore the warning message press enter Select back arrow three times Select RE gross invoice receipt Select details button No. range :51

Select no.range information button Company code :BIL

Select change intervals button No.range Year From no. To no. Enter and save Ignore the warning message press enter :51 :2008 :1000001 :1100000

MM end user area Creation of vendor master XK01

Give the company code Purchasing organization Account group Enter Give the name Country

:BIL :BILR :BIL2 MM vendors for BIL

:Nagarjuna Steels Limited :IN

Select next screen button 3 times Reconciliation account Sort key Select next screen button Payment terms :0001 :select 100501 Sundry credit RM :012 vendor

Select next screen button 2 times

104

Order currency

:INR

Select GR based invoice verification check box Save Creation of RM material master Path :Logistics Materials management Material master-materialCreate(Genral) Immediately (Transaction code MM01) Material Industry sector Material type :BILRM1 :Mechanical engineering :Raw material

Press select views button Select basic data1, purchasing, general plant data/storage1/accounting1 Select organization levels button (bottom side) Give the plant Storage location Enter Give the description Basic unit of measurement Material group Division Select purchasing tab Purchasing group Select accounting one tab Valuation class Price control Moving price Select save button or Ctrl+S To open material periods for November: Up to material master the path is same Other-Close period (Transaction code is MMPV) :select BIL1 (RM local) :select V moving average price :50 :BIL :Raw material 1 :KG :BILC (Chemicals) :BS (Steel) :BILP :HYD

105

From company code Give the period Fiscal year

:BIL :8 (November) :2008

Select check and close period radio button Execute Purchase order creation Path :Logistics Material management Purchasing Purchase order-CreateVendor/supplying plant known (The transaction code is ME 21N) Give the purchasing organization Company code Enter Give the purchasing group Item Material PO quantity net price Plant Give the currency Vendor no. Save Note the purchase order no.4500017092 Goods receipt: Path :Logistics Material management Inventory management Goods movement Goods receipt- for purchase order PO number known (The transaction code is MIGO) Select goods receipt Give purchase order no.4500017092 Enter Storage location select Select quantity tab :HYD :BIL :10 :BILRM1 :100 Kg :75 :BILP :INR :2001 :BILR :BIL

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Quantity in delivery note Select item ok check box Select save button or Ctrl+S Select display button Enter

:100

Select document information tab Select FI documents button 200121 Inventory RM local 7500 BILRM1 BSX BIL1 WRX BIL1

100520 GR/IR CLRG RM local -7500 BILRM1 Qty .Received(GR) *Rate as per PO 100*75 Note: change USTAX to GTAX Invoice verification:

Path :Logistics Materials management Logistics-Invoice verification Document entry-Enter invoice (Transaction code is MIRO) Give the invoice date Reference Text Purchase order Select payment tab Payment terms Baseline date Select base data tab Tax code Enter Business area Select beside data tab Amount Enter :7500 :BILH :select V0 :0001 :todays date :Todays date :Party bill no.1234 :Invoice verification :4500017092

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Select save button or Ctrl+s From the menu select invoice document Display Select follow on document button 2001 Nagarjuna Steels Limited 7500 From party no is taken 100520 GR/IR CLRG RM local 7500 BILRM1 BIL1

Raw material consumption Path :Logistics Materials management Inventory management goods movement goods issue (Transaction code is MB1A) Movement type Plant Storage location Enter Give the cost center Material Quantity :Dept A :BILRM1 :30 :201 :BILP :HYD

Select save button or Ctrl+S From the menu select goods Issue display Enter Select accounting documents button Select accounting document number BSX 200121 Inventory RM local 2250-BILRM1 BIL1 GBB VBR 400000 RM consumption LCL 2250-BILRM1 Qty consumed * moving average price 30*75 To view stock ledger BIL1

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Path :Logistics Materials management Inventory management Environment Stock for posting date (Transaction code is MB5B) Material no. Company code Plant Selection date :BILRM1 :BIL :BILP :01.04.2008 to 31.03.2009

Select valuated stock radio button Execute SD CUSTOMIZATION SD consultants job 1. Define region:(State) Path :SPRO-SAP netweaver-General settings-Set countries Insert regions Select new entries button Country Region Description Save Select create request button(F8) Short description SD customization for BIL Save in your request Define sales organization Path :SPRO-Enterprise structure Definition Sales and contribution Define,copy,delete,check,-Sales organization Double click on define sales organization Select new entries button sales organization Description statistics currency :BILS :BIL HYD :INR Sales organization :IN :AP :Andhra Pradesh

save, Ignore the warning message press enter

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Give the name country region press enter To save in your request

:BIL HYD sales organization :IN :AP

Define distribution channel Same path -Sales & distribution Define,copy, delete,check distribution channel Double click on define distribution channel Select new entries button Distribution channel Name Save Press enter to save in your request :BD :Direct sales

Define shipping point Path :SPRO-Enterprise structure Definition-Logistic execution Define, copy, delete, check shipping point Double click define shipping point Select new entries button Shipping point Description Save Name Country Enter Press enter once again to save in the request Assign sales organization to company code: SPRO-Enterprise structure Assignment-Sales & Distribution Assign sales organization to company code :BIL HYD shipping point :IN :BISH :BIL HYD shipping point

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Select position button Sales organization Enter For sales organization Assign company code Save Press enter to save in your request :BILS :BIL :BILS

Assign distribution channel to sales organization Same path Select new entries button Sales organization Distribution channel Save Press enter to save in your request Assign division to sales organization Same path Select new entries button Sales organization Division Save Press enter to save in your request Setup sales area: Same path Select new entries button Sales organization Distribution channel Division :BILS :BD :BS :BILS :BS :BILS :BD

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Save Press enter to save in your request Assign sales organization distribution channel- plant: Select new entries button Sales organization distribution channel Plant Save Press enter to save in your request Define rules by sales area: Path :Up to sales and distribution the path is same Business area account assignment Define rules by sales area Select position button Sales organization enter For sales organization Rule select :BILS :001 (Business area determination from plant / division ) Save, press enter to save in your request :BILS :BILS :BD :BILP

Assign shipping point to plant: Path :SPRO-Enterprise structure Assignment-logistic execution Assign shipping point to plant Select find button Enter Press enter Select :BILP :BILP

Select assign button Select BISH check box

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enter Save Press enter to save in your request

Define common distribution channels: Path :SPRO-Sales & Distribution Master data Define common distribution channels Select position button Give the sales organization Enter Distribution channels for condition :BD Distribution channels for customer master :select BD Save Press enter to save in your request Define common divisions: Same path Select position button Sales organization :BILS Enter Division for conditions :select BS Division for customer master :select BS Save Press enter to save in your request Maintain pricing procedures Path :SPRO-Sales and distribution Basic functions pricing Pricing control Define and assign pricing procedures Double click on maintain pricing procedures Select pricing RVAA01 standard Double click on control data folder Condition type SKTV cash discount :BILS

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Condition type MWST output tax Deselect required check box Save Ignore the warning message press enter to save Define pricing procedure determination: Upto define and assign pricing procedures the path is same Double click on define pricing procedure determination Select new entries button Sales organization Distribution channel Division Document pricing procedure Customer pricing procedure Pricing procedure Condition type Save Press enter to save in your request Define tax determination rules: Path :SPRO-Sales and distribution Basic functions- Taxes Define tax determination rules Select new entries button Tax country :IN for India Sequence :1 Tax category :UTXJ Tax Jursdict code Save Setup partner determination: Partner functions SP Sold to Party SH Ship to party BP Bill to party Customer No. 1 1 Not modifiable 1 2 Modifiable 1 2. Modifiable :BILS :BD :BS :select A standard :select 1 standard :select RVAA01 standard :select PR00 price

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PY Payer

2 Modifiable

If we dont specify separately (SP,SH,BP and PY)all we be only customer Path :Up to basic functions the path is same-Partner determination Set up partner determination Double click setup partner determination for customer master Double click on partner functions folder Select position button Partner function Enter Select partner function SP Double click on account group function assignment folder Select new entries button Partner function Account group Partner function Account group Partner function Account group Partner function Account group :SP :BIL2 :SH :B1L2 :BP :BIL2 :PY :BIL2 :SP

Ignore the warning message press enter to save in your request Double click on partner determination procedures folder Select new entries button Partner determination Name Save Ignore the warning message press enter :BIL :BIL partner determination procedure

Select partner determination

:BIL

Double click partner functions in processor folder

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Select new entries button Partner function Select not modifiable check box Select mandatory check box Select partner function Select partner function Select partner function Save Press enter to save in your request Double click on partner determination procedure assignment folder Select position button Account group Enter For BIL2 Assign partner procedure BIL Save Assign shipping points SPRO-Logistics execution-Shipping Basic shipping functions Shipping point and goods receiving point determination Assign shipping point Select new entries button Shipping conditions Loading group Plant Propose shipping point Save Press enter to save in your request :select 01 as soon as possible :0003 manual :BILP :BISH :BIL2 :SH select mandatory function check box :BP select mandatory function check box :PY select mandatory function check box :SP

FI consultant job: Creation of GL master sales local own goods under sales group FS00 Give the GL a/c no. :300005

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Company code

:BIL

Select with template button Give the GL a/c no. Company code Enter Change short text and GL a/c long text local own goods Select control data tab Tax category :* :300000 sales account :BIL

Select posting without tax allowed check box Select create /Bank /Interest tab Field status group G029 revenue accounts Save Select edit cost element button Valid from Enter Cost element category :11 Revenues Save * Assignment of account for automatic postings: Path :SPRO-Sales and Distribution Basic function-Account assignment/costing Revenue account determination Assign GL accounts (Transaction code is VKOA) Note : This is Important Tr code Double click on table one Select new entries button Application area :Select V Sales & Distribution Condition type :KOFI account data :01.04.2008

Chart of accounts :BIL Sales organization :BILS Account assignment group of customer :Select 01 domestic revenues Account assignment group of material :03 Finished goods

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Account key GL account Save

:Select ERL sales revenues :300005 sales local own group

Press enter to save in your request SD end user area Creation of customer master Company code Sales organization distribution channel Division Account group Enter Name Country Region Select company code data button Reconciliation account Sort key Select payment transaction tab Terms of payment Select sales area data button Customer pricing procedure Select shipping tab Delivery priority Shipping conditions Delivery plant Select billing documents tab Select price determination check box In CO terms under delivery and payment terms :select EXW form plant Terms of payment Account assignment group :0001 :select 01 domestic revenues :select 02 normal :select 01 as soon as possible :BILP :select 1 standard :0001 :200110 sundry debtors :031 customer no. :DLF Industries Ltd :IN :AP

:XD01 :BIL :BILS :BD :BS :SD customer for BIL

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For Tax category UTXJ Tax classification :select 1 liable for tax Save Creation of finished goods material master (MM01) Give the material Industry sector Material type Press select views button Select basic data 1 Select Sales Select Sales Select Sales Select MRP1 Select general plant data /storage 1 Select accounting 1 Select organization levels button Plant :BILP :Sales organization data 1 :sales org.data 2 :General /plant data :BILFG :Mechanical engineer :Finished product

Storage location :HYD Sales organization :BILS Distribution channel :BD Enter Description :Finished product

Base unit of measurement :KG Division Gross weight Select sales :BS :1 kg :select 1

sales :Sales org.1 tab Division :BS

Tax classification :select 1 (Taxable) Select sales :sales, sales organization 2 tab

Account assignment group :select 03 finished goods

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Select sales Available check

:General /plant tab :select KP no check :select 0003 container :select 0003 manual

Transportation group Loading group Select MRP1 tab MRP type Select accounting 1 tab Valuation class Price control Standard price Save

:select ND no planning

:select BILL2 finished product :select S standard price :400

Creation condition types: Path : Logistics Sales & Distribution Master data-Conditions Select using conditions type-create (Transaction code is VK11) Condition type :PR00 price

Select key combination button: Select material with release status radio button Enter Sales organization BILS Distribution channel Material Amount Valid from Valid to Save Select back arrow Condition type :select UTXJ tax Jursdict code :BD :BILFG :600 :01.04.2008 :31.03.2009

Select key combination button Select domestic taxes radio button Enter Country :IN for India

Tax classification for customer :1

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Tax classification for material :1 Valid from Valid to Tax code Save Ignore the message press enter CO PROFITABILITY ANALYSIS (CO-PA) Co for Controlling PA for Profitability Analysis This is used to view profitability for number of parameters at a time: Eg: Customerwise /Productiwise /Sales order wise plant wise, Sales organization profitability. Account based profitability /costing based profitability analysis / both (in India we use both) PP Module MM Module FI Module product costing SD module CO-PA CO Module Define an operating concert Operating concern can be equal to controlling area or above controlling area Controlling area can be equal to our company code or above company code Company code =controlling area =operating concern :01.04.2008 :31.03.2009 :A0 (0% output tax)

Data structure Characteristics Customer Product Sales order Plant Sales organization Sales employee Country -----| | |- | | | ---Value fields

Sales cost of goods sold net profit

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Profitability segment It consists of A) System defaulted characteristics Eg: customer / Product / Sales order /Plant /Sales organization B) Client required characteristics Eg: Sales employee / Industry Data flow in SD module: 1. Inquiry and quotation 2. Sales order customer /product /plant sales organization /quantity /rate delivery terms payment terms. 3. Delivery with reference to sales order. A) without posting goods issue (without PGI) B) with post goods issue (with PG1) 4. Sales billing with reference to delivery Data flow in Co-PA SD condition types PR00 Price VPRS Costs (Product costs) (up to COGM level) CO-PA value fields VV 010 Revenues VV 140 Cost of goods sold CO - +FI COGM Admin & SD Exp. (Both costing based and account based)

We are going to MAP: PR00 =VV010 VPRS=W140 Product cost : Cost sheet: Raw materials Raw material overheads Production costs

BILFG1 BILFG xxx xxx xxx ----- Production valuation will be at COGM level or COGM+ admin exp. Level Cost of goods manufactured xxx (COGM) Administration xxx Sales & Distribution xxx ----Cost of goods sold (COGS) xxx In client 800 for company code 10001 controlling area -1000 operating concern IDEA In IDEA All SD condition types and equivalent CO-PA value fields

122

We check IDEA and do customization the same way for our operating concern also IDEA is a references to all the CO consultants

CUSTOMIZATION : Maintain operating concern Path :SPRO-Controlling Profitability analysis Structures Define operating concern Maintain operating concern (Tr code is KEA0)

Give the operating concern Select create button

:BIL1 (It is a text field)

Ignore the warning message press enter Description :Operating concern for BIL

Select costing based check box Select account based check box select attributes tab operating concern currency INR select company code currency check box fiscal year variant save select data structure tab select create button under data structure select KMVTNR sales employee select left arrow select value fields tab select VV010 revenue select VV140 cost of goods sold select left arrow select save button :V3

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from the menu select data structure save from the menu select data structure activate Select back arrow Select yes button for the message to generate the operating concern environment. Ignore the message press enter Save Define profitability segment characteristics (Segment level characteristics) Path: Up to structures the path is same -Define profitability segment Characteristics (Tr code is KEQ3) Give the operating concern Enter For product and customer Select costing base and account base radio button Save Press enter to save in your request Assign controlling area to operating concern: Path :SPRO-Enterprise structure Assignment Controlling Assign controlling area to operating concern. Select position button Give the controlling area Enter For controlling area Assign operating concern Save Press enter to save in your request Define no.range for actual postings Path :SPRO-Controlling Profitability analysis Flows of actual values Initial steps Define no.range for actual postings (Tr code is KEN1) :BIL :BIL1 :BIL :BIL1

124

Operating concern Select maintain groups button

:BIL1

Select generated groups check box From the menu select interval maintain Select interval button From no. To no. Save Ignore the message press enter Maintain assignment of SD conditions to CO-PA value fields: Path :Up to flows of actual values the path is same Transfer of billing documents Assign value fields .(TR code is KE4I) Double click on maintain assignment of SD conditions to CO-PA value fields Select new entries button Open one more session with SPRO-Controlling-Profitability analysis Structures Set operating concern Give the operating concern Select operating concern Enter User the Tr code is KE4I Come to the first session Condition type Value field Condition type Value field Save Press enter to save in your request Notes :Direct posting from FI/MM PR00 price :VV010 Revenues Scrap sales/waste sales Posting only in FI, only FI-No Co account base , if we post manually in FI :PR00 :VV010 (Revenues) :VPRS (cost) :VV140 (Cost of goods/ Sold) 1 :9999999999 (10 times)

:IDEA

125

If we post directly in FI-for account no.300000-399999 up date VV010 revenues VPRS costs :VV140 cost of goods sold

If we post directly in FI for account no.400000-499999 up date VV140 cost of goods sold Up to flows of actual value the path is same (Through path ) Direct posting from FI/MM:Maintain PA transfer structure for direct postings Tr code is KEI2 Select structure FI (Financial accounting COPA) Double click assignment lines folder Give the controlling area Enter Enter once again Select assignment :20 (Direct revenues from FI) Double click on source folder From To :300000 :399999 :BIL

Double click on value fields folder Select new entries button Quality /value Fixed /variable Value field Save Press enter to save in your request :Select value filed :Select 1 fixed amounts :select VV010

Double click on assignment lines folder Assignment select :10 Direct cost from FI

Double click on source folder From To :400000 :499999

Double click on value fields folder

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Select new entries button Quantity /value Fixed /variable Value field Save Activate profitability analysis Path :Up to flows of actual values the path is same Activate profitability analysis (KEKE) Select position button Give the controlling area Enter For controlling area Activate status :BIL :select 4 (component activate for both types of profitability analysis) Save, press enter to save in your request SD END USER AREA 1. Creation of sales order Path: Logistics Sales and Distribution Sales Order Create (Tr code is VA01) Order type Sales organization :select OR (Standard Order) :BILS :BIL :select value field :select 1 fixed amount :VV140

Distribution Channel :BD Division Enter Sold to party P.O.No. P.O.Date :200101 :1 :To days date :BS

Required delivery date :Todays date Delivery plant Payment terms :BILP :0001

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Item Material Order quantity Enter

:10 :BILFG :10 kg

Ignore the message press enter Select item :10 From the menu select Goto Item Conditions Select shipping tab From the menu select Edit in complication log We get a message document is complete ,no errors Select save button or Ctrl+S Note the order no.11764 Production receipt : There are two types of production receipt. 1. Production receipt without production order MVT Type:521 2. Production receipt with production order MVT Type:101

Path :Logistics Materials Management Inventory management Goods movement Goods -receipt Other (Tr code is MB1C) Moment type Plant Storage location Enter Give the material Quantity Save Ignore the warning message press enter Note : Check it GL A/c 200122 Inventory, select automatic posting check box From the menu select other goods receipts Display-Enter Select accounting documents button :BILFG :50 :521 (Receipt w/o production order into unrest use stock) :BILP :HYD

128

Select accounting document no. BSX 200122 Inventory FG 20000 BILFG BIL2 GBB 300200 INC/DEC in stocks FG 20000-BILFG BIL2 ZOF Qty *Standard Price 50*400 Delivery: Path : Logistics Sales & Distribution Sales Order Sub request functions Outbound delivery (Tr code is VL01N) Shipping post :BILH Give the order no. Enter Actual goods issue date Select item Select picking tab Picked quantity :10 :Todays date :10 :11764

Select post goods issue button From the menu select outbound delivery display Enter From the menu select Environment Document flow keep the cursor on goods issue delivery document no. (down side in document column) Select display document button Select accounting documents button Select accounting document no. Double click on accounting document no. 200122 Inventory FG 4000-BILFG BSX is assign this A/c BIL2 300200 INC/DEC in stocks FG 4000 BILFG GBB VAY assigned to BIL2 Qty delivered *Standard price 10*400 Sales billing

129

Path :Up to sub sequent functions the path is same Billing document(Tr code is VF01) (Through path) Select Delivery document no. Execute Save From the menu select Billing document-Display-Select accounting button Double click on accounting document no. 200100 DLF Industries Limited 6000 customer no.is taken from sales order 300005 Sales local own goods 6000-ERL Qty sold *Sale price 10*600

REPORT PAINTER Report to view customer wise/product wise /Sales organization wise /plant wise profitability Define forms for profitability reports : Path :SPRO-Controlling Profitability analysis Information system report components Define forms Define forms for profitability reports-(The Tr code is KE34) Double click on creation Form Give the operation concern form :AML Form description : From AML profitability

Select two axes (matrix) radio button Select create button Select operating concern currency radio button Enter Double click on row 1 Select value field with characteristics radio button Enter Value field select VV010 Revenue Select confirm button Double click on row 2

130

Select value field with characteristics radio button Enter Value field select VV140 cost of goods sold Select confirm button Double click on row 3 Select formula radio button Enter Select Y001 Select minus button Select Y002 cost of goods sold Enter Short text Net profit Select copy short text button Enter Double click on column 1 Select characteristics radio button Enter Select plant /Actual indicator for available characteristics Select left arrow For plant /actual indicator From :Select 0 actual data Select confirm button Save From the menu select Edit-General data selection Once again general data selection From the available characteristics column Select record type, period /year Select left arrow For record type For form column :Select B direct posting from FI For To column :Select F billing data

131

For period /year : For from column :Select variable on /off check box Local variable Press enter For to column select variable on/off check box Local variable Enter Select confirm button From the select Extras variables variable definition For name 1 : Give the description from period /year :To period /year :2 :Enter 1

For name 2 Description Enter & save Create profitability report:

Same path Double click on crate profitability report Tr code is KE31 Give the report Description :BILREPORT ( This is a text field) :BIL Profitability Report

Select report with from radio button Give the form name :BIL1 Select create button Select operating concert currency radio button From the characteristics list :Select customer /plant /product ,Sales organization Select left arrow Select output type tab Select classic drill down radio button Select available on selection screen check box Save Ignore the message press enter Select execute button Form period/year :01.2008

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To period /Year Execute

:12.2008

Ignore the message select press enter To view product wise profitability from the menu select navigate-with drill down Double click on product This called date cube

PRODUCT COSTING
This is used for valuation of inventories i.e. Finished goods and Work in progress PP Module MM Module FI Module CO Module

| | |

Product costing

Note: SAP lab :Product costing made easy BPB publication Not covered product costing Crate a cost estimate with quantity structure Cost element with quantity structure At standard cost In the month end we get actual cost Variable will be settled to accounts How standard cost will be arrived at : Sales budget for next month Production budget Material requirement Planning | | (Make to orders (confirmed orders) (This is same men budget) + And make to stock (expected orders)) Overhead planning = Standard cost Cost sheet for the product BILFG1 Raw materials xx Raw material overheads xx Production costs xx Cost of goods manufactured (COGM) xx Administration Expenses xx Sales & Distribution exp. xx ---Cost of goods sold (COGS) xx

To check with client at what level he wants to value stocks At COGM level or At COGM +Admin level

133

Raw material standard cost For each product we find out materials required For BILFG1 We required BILRM1 BILRM2 MM Module :Material Master Accounting view moving average price BIL RM1 75 BILRM2 125 PP Module: Bill of Material (BOM) To produce BILFG1 what materials are required and how much quantity BILRM1 1Kg BILRM2 1Kg Raw material standard cost =Quantity from BOM (PP)*Rate from Material Master (MM) (1*75)+1*125)=200 Raw material overheads Overheads like freight charges :At the time of receipt it will be added to material At the time of consumption the material cost includes freight also. Overhead like loading and unloading normal amounts change directly to P & L account clients will tell us-how much percentage can be taken on raw material cost (consumption.) 5% of raw material costs Eg: 250*5%=12.5 Production costs: Cost centers in PP Module :Work centers Dept A Dept B Dept C Dept D

Raw material

Dept A Issue

Dept B Dept C Issue

Dept D Issue finished product

All products need not go through all the Departments Process flow for each product in PP module we call as routing. PP Module: Routing Raw material Dept A Issue (Process flow) Dept B Dept D Issue Finished product

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Wages Salaries Power

300000 100000 320000 ------Planned cost 720000 ===== Planned hours available Machines 100 working for 3 shifts (24 Hours ) No.of days 30 Days 100*30*24=72000 Machine hour rate 720000/72000=10 Rs (Activity type) To Produce BILFG1 Hours required 5Hrs Production cost 10*5=50 Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in Dept B* Machine hour rate )+ (Hours required in Dept D * Machine hour rate) Example : Why cant we allocate based on production Production Qty 999 Kgs 1 Kg -----1000 Hrs Req 1 999 ----1000 Cost

BILFG1 BILFG2

720000

If we allocate cost based on production BILFG1 BILFG2 720000*999/1000=719280 720000*1/1000= 720 -------720000 ====== If we allocate cost based on hours required BILFG1 BILFG2 720000*1/1000 720000*999/1000 =720 =719280 ----------720000 ========

ACTIVITY BASED COSTING Co Consultants job:

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1. Creation of 2 secondary cost elements (Use Tr.code is KA06) A) RM overhead rate B) Activity allocation Give the cost element 1200000 Valid from 01.04.2008 to 31.12.9999 Enter Give the name and description Cost element category Save Cost element Enter Name and description Cost element category Save Creation of activity type Machine hour: Path :Accounting Controlling cost Center accounting Master data Activity typeIndividual processing create (Transaction code KL01) Activity type Valid from Enter Give the Name & Description :Machine hour Activity unit Cost center categories Active type category Allocation cost element Save Creation of cost centers: (Tr.code is KS01) Give the cost center :Dept G :select H :Select * (All cost center categories) :select 1 (Manual entry , Manual allocation) :1200001 :BIL :01.04.2008 to 31.12.9999 :Activity allocation :select 43 Interval activity allocation :1200001 :RM Overhead rate : Select 41 overhead rates

136

Valid from Reference cost center Controlling area Enter Change the name to Dept G

: 01.04.2008 to 31.12.9999 :Dept A :BIL

Change the description to cost center :Dept G Person responsible Other things are common Select save button :MrG

Cost center Reference cost center Controlling area Enter Change the name to Dept H

:Dept H :Dept A :BIL

Change the description to cost center:Dept H Change person responsible to Mr.H Cost center category :select 9( Allocation cost center) Save

Create of cost center group (Tr code is KSH1) Give the cost center group :BILPROD Enter Description :BIL Production cost center group Select insert cost center button Select cost center Dept G Save Define overhead keys: Path :SPRO-Controlling Product cost controlling Product cost planning basic settings for material costing - overheads-Define overhead keys

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Select new entries Overhead key Description Save Press enter to save in your request Define overhead groups Same path Select new entries button Valuation area Overhead group Overhead key Name of overhead group Save Press enter to save in your request Note: Overhead rate will be given to overhead key Overhead key will be assigned to overhead group Overhead group will be specified in material master Define calculation basis Path :SPRO-Controlling- Product cost controlling Product cost planning-Basic setting for material costing Over head costing sheet components Define calculation bases Select new entries button Base Name Base Name Save Press enter to save in your request :D1 (Text filed) :Raw materials :D2 :Production cost :BILP :BIL1 :BIL1 :BIL over head group :BIL1 :BIL Overhead key

138

Select D1 double click on details folder Controlling area Enter Select new entries button From cost element To cost element Save Select back arrow two times Select base D2 Production cost Double click on details folder Controlling area Enter Select new entries button From cost element To cost element :400100 :400299 Personnel & Manufacturing group :BIL :400000 :400099 RM consumption :BIL

From cost element To cost element

:400500 :400599 Depreciation a/c

From cost element To cost element Save

:1200001 Activity allocation :1200001

Define percentage overhead rates: Same path Select new entries button Overhead rate Name Dependency Save :D3 :RM overhead rate :Select D010 Overhead type/Overhead key

139

Press enter to save in your request

Select D3 Double click on details folder Ignore the warning message press enter Select new entries button

Valid from

To

Controlling area Overhead type Overhead key Percentage BIL Select 2 BIL1 5 (Planned overhead rate) RM key 1 (Actual overhead rate) BIL1 10

01.04.2008 31.03.2009

01.04.2008 31.03.2009

BIL

Select save button or Ctrl+S Press enter to save in your request Define Credits Same path Select new entries button Credit Name Save Press enter to save in your request Select :D4 :D4 :BIL RM credit key

Double click on details folder Controlling area Enter Select new entries button Valid to Cost element Fixed percentage Cost center Save :31.03.2009 :1200000 RM overhead rate :100% :Dept H (Allocation cost center) :BIL

140

Actual over head rate 10% Credit key D4 -1100000 Cost Dept.

1. RM1 Purchase/Receipt (Freight including) Inventory RM local DR 600000 To GR/IR clearing RM local 600000 2. Loading & Unloading charges Loading & Unloading charges Dr To Bank 3. RM 2 Purchase Inventory RM local DR 300000 To GR/IR clearing RM local 300000 4. Loading & Unloading charges for RM 2 Lodging & unloading charges DR To Bank 3000 3000 7000 Dept H 7000

5. RM Consumption for production Order 1-RM1 and RM2 RM consumption local DR RM Consumption local DR To Inventory RM local To Inventories RM local 40000 Order 1 20000 Order 1 40000 20000

6. RM consumption for production order 2 RM-1 and RM2 RM consumption local DR RM Consumption local DR To inventory RM local To Inventory RM local In the month end RM material consumption Lodging & Unloading charges % on consumption 100000 10000 10% actual overhead rate 10000 Order 2 30000 Order 2 10000 30000

141

Cost center Dept H (Allocation cost center) Loading & Unloading for RM1 7000 DR Loading & Unloading for RM2 3000 DR Order 1 Order 2 6000 DR 4000CR

H Value will be zero

RM Consumption RM overhead rate (Actual 10%)

Order 1 60000 6000 ----66000 =====

Order2 40000 4000 ----44000 =====

Indirectly we are allocating cost center Dept H values to production orders based on the consumption values. Define costing sheets: Path :Up to overhead the path is same- Define costing sheets Select new entries button Costing sheet Description Save Press enter to save in your request Select :BIL :BIL :BIL Costing Sheet

Double click on costing sheet rows folder Select new entries button Row 10 20 Base D1 400000-400099 D3 From To Row Credit Row :10 :10 :D4 :30 Overhead Description Raw materials RM Overhead rate

142

Base Description Row Description From To row Save

:D2 :Product cost :40 :Cost goods manufacturer :10 :30

Assign costing sheet to plant : Path :SPRO-Controlling Product cost controlling Product cost planning Material cost estimate with quantity structure- Define costing variants (TR code is OKKN) Select position button Cost variant :Select PPC1 standard cost estimate (Materials) Enter Select PPC1 Select details button Select valuation variant button Select create beside valuation variant /plant Select new entries button In plant Save Press enter to save in your request :BILP

Select back arrow Select valuation variant Select details button Select overhead tab Give the costing sheet Save Define cost component structure: :BIL costing sheet both in the places :001 with plant BILP

143

To know the break up of standard product cost What is raw material cost? What is RM overhead cost ? What is production cost ? Path :SPRO-Controlling Product cost Controlling Product cost planning Basic settings for material costing Define cost component structure . (OKTZ) Select cost component structure :01

Double click on cost components with attributes folder Select component structure :01 with cost component 10 raw materials Double click on assignment:Cost component cost element interval folder Select new entries button Cost competent structure Chart of Accounts From cost element To cost element Cost component Save Ignore the warning message press enter Press enter to save in your request Select back arrow Double click on cost components with attributes folder Select cost component structure 01 with cost component 80 Material over head Double click on assignment:Cost component cost element Interval folder Select new entries button Cost component structure Chat of Accounts From cost element Cost component Save Press enter to save in your request Double click on cost components with attributes folder Select cost component structure :01 with lost component 50 production machine :01 :BIL :1200000 RM overhead :80 Material overhead :01 :BIL :400000 :400099 :select 10 RM

144

Double click on assignment cost component cost element interval folder Select new entries button Cost component structure Chat of Accounts From cost element To cost element Cost component :01 :BIL :400100 :400299 :select 50 production machine

One more Cost component structure Chat of Accounts From cost center To cost center Cost component :01 :BIL :400500 :400599 :50

One more

Cost component structure Chat of Accounts From cost element Cost component Save

:01 :BIL :1200001 :50

Double click on cost component structure folder For cost component structure 01 select active check box Save For cost component structure assignment structure 02 also for cost component Note: The above procedure is to be followed to 02 also PP CONSULTANT JOB: Define MRP controller Path :SPRO-Production material requirements Planning Master data-Define MRP controllers

145

Select new entries button Plant :BILP MRP controller :Mr.A Save Press enter to save in your request

Notes: Define floats (Scheduling margin key) Floats Buffer days or grace days Production order creation Production order release Production start date Production end date 2 days grace days 08.12.2008 10.12.2008 10.12.2008 12.12.2008 11.12.2008 13.12.2008 15.12.2008 17.12.2008

Path :SPRO-Production Material requirements planning Planning Scheduling and capacity parameters Define floats (Scheduling margin key) Select new entries button Plant Margin key Opening period Float before production Float after production Release period Save Press enter to save in your request Define production scheduler Path :SPRO-Production-Shop floor control- Master data-Define production scheduler Select new entries button Plant :BILP Production scheduler :B Description :Mr.B Save Press enter to save in your request :BILP :BIL :2 days :2 days :2 days :2 days

146

Determine person responsible for work center Path :SPRO-Production Basic data Work center General data Determination person responsible Select new entries button Plant :BILP Responsible person : Mr.C Person responsible for work center :Mr.C Save Press enter to save in your request CO END USER AREA: Planning cost center wise (KP06) Version From period To period Fiscal year Give the cost center :0 :9 (December) :9 (December) :2008 :Dept G

Select page down button or next page button Cost element :400100 Salaries A/c

Select from based radio button Select overview screen button (F5) For 400100 Plant fixed cost Save Planning for machine hours Path :Accounting Controlling Cost center accounting Planning-Activity output /Prices-Change (KP26) Version From period To period Fiscal year :0 :9 :9 :2008 :720000

147

Select next page or page down button Cost center Activity type :Dept G :BIL

Select form based radio button Select overview screen button Plant activity Save :72000

calculation of Machine hour rate Path :Up to planning the path is same Allocations Price calculation (KSPI) Select cost center group radio button Cost center group select :BILPROD Execute Select save button Ignore the message press enter MM END USER AREA Creation of material master A) Raw material B) Finished product Give the material Industry sector Material type 2 1 :BILRM2 :Mechanical Engineering :Raw material (MM01)

Press select view button Select basic data1 :Select purchasing Select general plant data /storage /Accounting

Select organization levels button Plant Storage location Enter Give the description :Raw material 2 Base unit of measurement :KG :BILP :Hyderabad

148

Material group Division Select purchasing tab Purchasing group

:BILC :BS

:BIL

Select accounting 1 tab Valuation class Price control Moving price Save :BIL1 RM Local :select V moving :150

One more material Industry section Material type

:BILFG1 :Mechanical engineering :Finished product

Press select view button

Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1, accounting , Costing 1 Select organizational levels button /enter Enter Plant Storage location Enter Description :Finished product 1 :BILP :Hyderabad

Base unit measurement :KG Division Select MRP1 tab MRP type MRP controller Lot size :select PD (MRP) :A :select EX lot for lot order quantity :BS

Select MRP 2 tab

149

In house production :0 days Schedule margin key :select BIL Select MPR 3 tab Ignore the warning message press enter Availability check :select KP (no check )

Select work scheduling tab Production scheduler :B Select accounting tab Valuation class Price control Standard price Select costing one tab Overhead group Save Note :BOM=Bill of Material PP END USER AREA Creation of Bill of Material Path :Logistics Production Master data Bills of material Bill of material Material BOM Create (CS01) Give the material Plant BOM usage Enter For item Give the component Quantity Item Give the plant Quantity Save :10 :BILRM1 :1 :20 :BILRM2 :1 :BILFG1 :BILP :select 1 production :select BIL1 :BIL2 Finished products :S (Standard price) :300

150

Creation of work center Path :Up to mater data the path is same Work centers then work centers-create (CR01) Plant Work center Work center category Select basic data button Give the description Person responsible Usage :Dept G :Mr.C :009 :BILP :Dept G :select 0001 Machine

Under standard value maintenance Standard value key Select costing tab Start date Cost center :01.04.2008 :Dept G :SAP1 Normal production

For machine activity :Give activity type BIL Activity unit Formula key Save Creation of routings Path :Up to master data the path is same Routings Routings Standard routings Create (Tr code is CA01) Give the material Plant Enter Usage Status Select operation button For operation 10 give the work center :Dept G :select 1 production ;select 4 (released (general)) :BILFG1 :BILP :H (Hour) :SAP002 (Production machine time)

151

Control key Double click on operation Machine standard value Unit Save

:select PP01 in hour production :10 :5 :H (Hour)

Note: Routing is process flow as a department wise CO END USER AREA Creation of cost estimate with quantity structure: Path :Accounting Controlling Product cost controlling Product cost planningMaterial costing cost estimate with quantity structure Create (Tr code is CK11N) Give the material Plant Costing variant Enter Costing date from institution use todays date Costing date to Quantity structure date Valuation date Enter Cost sheet Raw materials BIL RM1 BILRM2 1 Kg 1Kg 75 150 :31.12.9999 :08.12.2008 :08.12.2008 :Todays date :BILFG1 :BILP :select PPC1 (standard cost estimate for material )

Note :In live environment next month first day date, this is planning date, In training

225 11 50 ----286

RM overhead cost -5% Production costs 5*10 Machine hours 5 Hrs Machine hour rate 10Rs

152

From the menu select Costs >Display cost components Select save button or Ctrl+S Enter Marking and releasing Display material master Path :Logistics Materials management Material master-Material Display Display current (MM03) Material :BILFG1 Press select views button Select costing 2 view Enter Plant :BILP Enter A) Marking and releasing Display material master 1. Making updates future price in live environment on 21st February create estimate for March and store in the System. 2. Realizing updates current price on 1st of March release stock valuation will be at the new rate from 1st of March B) Marking and releasing : Path :Accounting Controlling Product cost controlling Product cost planning material costing Price update (CK24)

Posting period Fiscal year Company code Plant Material Select test run check box

:9 :2008 :BIL :BILP :BILFG1

Select marking allowance button Select company code Costing variant :BIL :select PPC1

153

(Standard cost estimate for materials) Save

Select back arrow Deselect test run check box Execute Select material Select costing to tab Select back arrow two times Select release button Execute Select material Select costing to tab :BILFG1 :BILFG1

ACTUAL COSTING CO consultant Job Check costing variants for Manufacturing orders (PP) Path :SPRO-Controlling Product cost controlling -Cost object controlling product cost by order Manufacturing orders Check costing variants for manufacturing orders(PP) (Tr.code is 0PL1) Select costing variant PPP1 Production order plan Select details button Select valuation variant button Select create button beside valuation variant /plant Select new entries button In plant Save Press enter to save in your request Select back arrow Select valuation variant :006 with plant BILP :BILP

154

Select details button Select overhead tab Give the costing sheet Save Select back arrow Select costing variant PPP2 production Order Actual Select details button Select valuation variant button Select create beside valuation variant/plant Select new entries button In plant Save Press enter to save in your request Select back arrow Select valuation variant 007 with plant :BILP Select details button Select overhead tab Costing sheet Save Define goods received valuation for order delivery: Same path Select new entries button Valuation area :BILP Valuation variant :007 production order -Actual Save Press enter to save in your request Work in process customization Creation of 5 secondary cost elements (Tr code is KA06) Give the cost element Valid from Enter :1100000 :01.04.2008 to 31.12.9999 :select BIL costing sheet :BILP :BIL costing sheet

155

Name & Description Cost element category Save Cost element Reference cost element Controlling area Enter & Save

:Order /Project result analysis :select 31 (order /project results analysis)

:1100001 :1100000 :BIL

Cost element Reference cost element Controlling area Enter & Save Cost element Reference cost element Controlling area Enter & Save Cost element Reference cost element Controlling area Enter Save

:1100002 :1100000 :BIL

:1100003 :1100000 :BIL

:1100004 :1100000 :BIL

Define results analysis keys Path :SPRO-Controlling Product cost controlling Cost object controlling Product cost by order Period end closing Work in process Define results-Analysis keys (Tr code is OKG1) Result analysis key :FERT WIP calculation for production orders

Define results analysis versions(Tr code OKG9) Same path Select new entries button Select controlling area

:BIL 156

Technical result analysis cost element :select 1100000 Save Press enter to save in your request Define valuation method (Actual cost) ( Tr code is OKGC) Same path Select new entries button Select actual cost button Controlling area :BIL

Result analysis version :0 Result analysis key Enter & Save Press enter to save in your request Define line Ids Same path Purchase of to get the break up of WIP (Work In Progress)value Select line ID EL (Revenues) EK FK Direct cost Production cost :FERT

ABR settled cost for controlling area 1000

Select copy as button (F6) Change the controlling area to BIL for all line IDs Enter & Save Press enter to save in your request

Define Assignment (OKGB) Same path Select line ID EL that is revenues for controlling area Select copy as button Change the controlling area to BIL Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999) Enter & Save :1000

157

Press enter to save in your request Select line ID :EK Direct cost for controlling area 1000 Select copy as button Change the controlling area to BIL Change mass cost element to 00004000++ Enter and save Select line ID FK that is production cost for controlling area 1000 Select copy as button Change the controlling area to BIL Production cost elements: 400100 -400199 Personnel 400200-400299 Manufacturing 400500-400599 Depreciation 1200001 Activity allocation

00004001++ 00004002++ 00004005++ 00012+++++

Change master key cost element to 00004001 Enter & Save Notes: for define assignment line ID brak up of WIP Dept A Issue RM RM over head Production costs 100000 200000 Dept B work in progress ept C

Calculate internally WIP by using secondary cost elements and transfer to financial accounting require the break up of WIP by using line IDs and account assignments to line IDs.

Select line ID FK production cost for controlling area BIL Select copy as button Change the mass cost element to 00004002++ Enter & Save Select 2FK line IDs for controlling area BIL Select copy as button Change masked cost element from first line ID 00004005++

158

Change to 00012+++++ Enter & save Select bank arrow

Select line ID ABR Settled cost for controlling area 1000 Select copy as button Change the controlling area to BIL Change mass cost element to 0001000001 :(settlement cost element) Enter & save Define update; (Tr.code is OKGA) Same path Select new entries button Controlling area Version Result analysis key Line ID Category Controlling area Version Result analysis key Line ID Category WIP Revenues Controlling area Version :BIL :0 :FERT :select EL revenues :select N (costs not to be included) :BIL :0 :FERT :Select EK (Direct cost) :select K cost :1100001 :1100002 :BIL :0

Revenues analysis key :FERT Line ID Category WIP creation :FK production cost :select K cost :1100003

159

Reserves creation

:1100004

Select page down button One more controlling area :BIL Version Result analysis key Line ID Category Save Press enter to save in your request Creation of two GL Masters: WIP entry Work in process DR BS P&L CA(Current assets, Loans & Advances) Credit INC/DEC in stocks :0 :FERT :ABR settled cost :select A (Settled cost )

To Increase /Decrease in WIP

FS00 Give the GL Account no. Company code Select with template button Give the GL A/c No.200121 INV RM local Company code Enter Change short text to and GL A/c long text to work in process Other fields are common Save :BIL :200123 :BIL

GL A/c No.300201 Company code :BIL Select with template button Give the GL A/c no.300200 Increase /Decrease stocks FG

160

Company code Enter

:BIL

Change short text and GL A/c loge text to INC/DEC stocks WIP (Work in Progress) Save Define posting result for setting work in process Path :Up to period end closing the path is same Work in process Define posting results for setting work in process (OKG8) Select new entries button Controlling area Company code :BIL :BIL

Result analysis version :select 0 Result analysis category :WIPR (Work in Process with requirement to Capitalized) P & L A/c Balance sheet Save Press enter to save in your request Define results analysis version (OKG9) Same path Select controlling area select details button Select transfer to Financial accounting check box Save Ignore the warning message press enter Press enter to save in your request :BIL :300201 :200123

RM issue overhead production costs Dept A

Dept B

Dept D

FG not received Settle to accounts by using secondary costs elements break up WIP (BY using line IDs) Define variance keys:

161

Path :Up to period end closing the path is same Variance calculation :Define variance keys (OKV1) Select variance key 00001 Production order Select copy as button Change the variance key to BIL1 Change the name also variance key for BIL Enter & Save Define default variance keys for plants (OKVW) Same path Select position button Give the plant :BILP Enter For plant :BILP Assign variance key :BIL1 Save Press enter to save in your request Define target cost version: (OKV6) Notes: Budgeted cost =Budgeted production Qty

Standard price

Standard cost =Standard quantity * Standard price Target cost =Actual production qty * Actual cost =Actual Production * Path :Same path Select controlling area 1000 with target cost version 0 Select copy as button Change the controlling area to BIL Change the description to target cost version for BIL Enter & Save Press enter to save in your request standard price

actual price

162

Assign variance key in Material master Path :Logistics Material management-Material master Material Change Immediately (MM02) Give the material no.BILFG1 Press select views button Select costing 1 view Enter Give the plant :BILP Enter Variance key :select BIL1 Save Creation of cost element group (KAH1) Give the cost element group :BILPRODN Enter Description :Production cost element for BIL Select Edit-Cost element -Select insert cost element button 400100 400299 Personnel & Manufacturing 400500 400599 Depreciation 1200001 Activity allocation Save

Create allocation structure: Path :SPRO-Controlling Product cost controlling- Cost object controlling Product cost by order-Period end closing Settlement create allocation structure Select new entries button Allocation structure Text Save Press enter to save in your request :B2 :BIL Production differences allocation structure

Select

:B2

Double click on assignments folder

163

Select new entries button Assignment 01 02 03 Save Text Direct costs(Raw materials) Material overheads Production costs

Select assignment 01 Double click on source folder From cost element To cost element :400000 :400099

Double click settlement cost elements folder Select new entries button Receiver category :select G/L, GL account

Select by cost element check box Save

Double click on assignments folder Select assignment 02 Material overheads Double click on source folder From cost element :1200000 RM overhead rate

Double click on settlement cost elements folder Select new entries button Receiver category :select G/L , GL Account

Select by cost element check box Save Double click on assignment folder Select assignment 03 production cost Double click on source folder Give the cost element group :BILPRODN save

164

Double click on settlements cost elements folder Select new entries button Receiver category :select G/L

Select by cost element check box Save Create settlement profile: Same path Select new entries button Settlement profile Description :BIL :BIL production order differences settlement profile

Select to be settled in full radio button Allocation structure :B2 Default object type :select G/L

Select % settlement check box Select equivalence number check box Select amount settlement check box Under valid receivers for GL account :Select settlement required Document type :SA

Maximum no.of distribution rules :999 Residence time Save Press enter to save in your request Define CO.No.range interval for the business transactions RKL -Actual Activity Allocation KZPI- Actual overhead (Periodic) :12 months

User transactions code :KANK Give the controlling area Select maintain groups button :BIL

165

Double click on RKL Double click on KZPI Select Co. No. range interval for BIL check box From the menu select Edit Assign element group Save Ignore the warning message press enter Define exchange rate for type P (Standard truncation for cost planning for INR to EURO (Transactions code OB08) Select new entries button Exchange rate type :P Valid from :01.12.2008 From currency :INR To currency :EUR Direct quotation :0.02 Save Press enter to save in your request FI Consultant job BILRM2 receipt Purchase order | GR | IV Opening stock

Inventory RM local To Stock taking

DR GBB

BSX BSA

Current liability & provision

Production order differences are to be settled to accounts Production order differences manufacturing DR PRD To INC/DEC in stocks FG GBB AUA

Creation of 2 GL masters (FS00) Give the GL A/c No.400201 Company code :BIL

166

Select with template button Give the GL A/c No. :400200 Conversion charges Company code :BIL

Change short text and GL account long text to production order differences Select create /bank/Interest tab Field status group change to G014 MM adjustment account Save GL A/c No. Company code :100599 :BIL

Select with template button Give the GL A/c No.100500 VAT payable Company code Enter Select type /Description tab Chang short text and GL account long text to Stock taking Select create /bank /interest tab Change the field status group G049 (manufacturing cost accounts) Save Give the GL account no.300200 INC/DEC stock in FG Company code :BIL :BIL

Select edit cost element button Valid from :01.04.2008 to 31.12.9999 Enter Cost element category Save :select 22 external settlement

Assignment of account for automatic postings (OBYC) (See the material ) Double click on transaction PRD Cost (Price) differences Give the Chart of Accounts Enter :BIL

167

Save Give A/c No.400201 production order differences Save Press enter to save in your request Select back arrow Double click on GBB offsetting entry for inventory posting Valuation modifier :X

General modification :BSA opening stock taking Valuation class Account no. Valuation modifier :BIL1 :100599 stock taking account :X

General modification :AUA production Valuation class Account Save Press enter to save in your request PP CONSULTANTS AREA Define order type Dependent parameters Path :SPRO-Production Shop floor control-Master data Order-Define order type dependent parameters. (Tr code is OPL8) Select plant :1000 with order type PP01 :BILL :300200

Select copy as button Change the pant to BILP Enter and Save Press enter to save in your request

Define scheduling parameters for production orders Path :Up to Shop floor control the path is same- Operations-Scheduling Define scheduling parameters for production orders (Tr code is OPU3)

168

Select plant Select copy as button

:1000 with order type PP01

Change the plant to BILP Enter and save Press enter to save in your request Define confirmation parameters Path :Up to shop floor control the path is same Operations-Confirmation-Define confirmation parameters (OPK4) Select plant 1000 with order type PP01 Select copy as button Change the plant to BILP Enter and Save Press enter to save in your request Define checking control Path :Up to shop floor control the path is same Operations Availability check define checking control (OPJK) Select business function Select copy as button Change the plant to BILP Enter Change the plant to BILP Enter and save Press enter to save in your request END USER AREA Creation of production order: Path :Logistics Production-Shop floor control-Order Create with material (Tr code is CO01) Give the material :BILFG1 :1 & 2 for order type PP01 for plant 1000

169

Production plant Planning plant Order type Enter

:BILP :BILP :select PP01 Production order

Give the total Qty under quantities :10 Start date & end date :Todays date Select cost order button (Ctrl+F7) From the menu select Goto Costs Analysis Select back arrow Select release order button (Ctrl+F1) Save From the menu select order display note the order no.60003225 Enter Select assignment tab Not to the reservation no.66076 Raw material receipt by way of opening stock Path :Logistics Materials management Inventory management goods movement Goods receipt Other (Tr code is MBIC) Give the movement type Plant storage location Enter Give the material no. Quantity Select save button or Ctrl+S From the menu select other goods receipts display Enter Select accounting documents button 200121 100599 Inventory RM LCL 15000 BILRM2 Stock taking 15000 BILRM2 BIL1 BSX GBB BSA BIL1 :BILRM2 :100 kgs :561 :BILP :HYD

170

100*150

Raw material issue to production order:(Tr code is MB1A) Select to reservation button Give the reservation no.66076 Enter Qty BIL RM1 :15 BIL RM2 :15 Save From the menu select goods issue display Enter Select accounting documents button Select accounting document no. 200121 400000 Inventory RM local 1125 BILRM1 BSX BIL1

RM consumption local 1125 BILRM1 GBB VBR BIL1 Quantity consumed * Avg rate ( 15 *75) Inventory RM local 2250 BILRM2 BSX BIL1 GBB VBR BILRM2 BIL1

200121

400000

RM consumption local 2250 Qty consumed * Avg. rate (15*150)

Actual overhead calculation Path :Accounting Controlling Product cost controlling Cost object controlling product cost by order Period end closing single functions Overhead Individual processing (Tr code is KGI2) Give the order no. Period Fiscal year Select text check box Select dialog display check box Execute Select back arrow :60003225 :9 :2008

171

Deselect text run check box Execute

Work in process calculation Path :up to single functions the path is same Work in process Individual processing Calculate (Tr code is KKAX) Give the over no. WIP period Fiscal year :60003225 :9 :2008

Result analysis version :select 0 Select test run check box Execute Select back arrow Deselect test run check box Execute Settlement of work in process to accounts (31.12.2008 (month end date) Path :Up to single functions the path is same Settlement of individual processing (Tr code is K088) Give the order no. Settlement period Fiscal year :60003225 :9 :2008

Deselect text run check box Select check transaction date check box Execute Select detail lists button Select accounting documents button Select accounting document no.

300201

INC/DEC in stock WIP 3713 P &L Account

172

200123

Work in Process 3713 Balance Sheet

(Actual RM +Actual RM overheads)

To view work in process report Path :Accounting Controlling Product cost controlling Cost object controlling Product cost by order Information system Reports for product cost by order Object list Order selection (Tr code is S_ALR_87013127) Plant Material number From period To Period Execute Select report call button :BILP :BILFG1 :01 2008 :9 2008

Confirmation of production order Path :Logistics Production shop floor control Confirmation Enter-For operation time ticket (Tr code is Co11N) Give the order no. Operation /Activity Confirmation type Yield to confirm Fro activity 2 to confirm Unit Save Production receipt Path :Logistics Material management Inventory management Goods movement Goods receipt for order (Tr code is MB31) Give document date Posting date Give the movement type Order Plant :31.12.2008 :31.12.2008 :101 (Goods receipt for order into ware house) :60003225 :BILP :60003225 :10 kg :select final confirmation :10 kg :60 Qty :H (Hour)

173

Storage location Enter

:HYD

Ignore the warning message press enter Select save button or Ctrl+S From the menu select goods receipt display Document no.5000011861 Enter Select accounting documents button Select accounting document no. 200122 Inventory FG 2860 BILFG1 BSX BIL2 GBB AUF BIL2

300200

INC/DEC in stocks FG 2860 BILFG1 Qty produced * standard rate 10*286 To make production order technically complete (TECO)

Path :Logistics Production shop floor control Order Change (Tr code is CO02) Give the order no.60003225 Enter From the menu select functions Restrict processing Technically complete Save Calculation of variances Path :Accounting Controlling-Product cost controlling Cost object controlling Product cost by order - period ending closing single functions- Variances Individual processing (Tr code is KKS2) Give the order no.60003225 Select execute button Select back arrow Deselect text run check box Execute Double click on variance amount

174

Open one more session for order display (CO03) Give the order no.60003225 Enter From the menu select go to cost analysis Calculation of work in process (KKAX) Path :Upto single functions same path Work in Progress Individual processingCalculate Work in process for Dec Production for Dec To calculate WIP once again work in process will be reserved and variances will be settled to accounts Give the order no. WIP to Period Fiscal year :60003225 :9 :2008

Result analysis version:0 Deselect text run check box Execute Settlement of work in process to accounts :KO88 Give the order no. Settlement period Fiscal year :60003225 :9 :2008

Deselect test run check box Select check transaction date check box Execute Select details list button Select accounting documents button Select accounting document no. GBB AUA 300200 400201 300201 INC/DEC in stocks FG 853 BILFG1 Production order diff 853 period INC/DEC in stock WIP 3713 P & L debit BIL2

175

200123

work in process 3713 Balance sheet credit

ASSET ACCOUNTING AREA

Capital work in progress line item settlement Machine purchase Debit to CWIPMachine no.15 01.12.2008 Commission 13/12/2008 Freight charges 05.12.2008 settle from CWIP to respective asset Commissioning charges 12/12/2008 Define settlement profile: Path :SPRO-Financial accounting Asset accounting- Transactions-Capitalization of assets under construction Define /Assign settlement profiles (TR code is OKO7)

Double click on define settlement profile Select settlement profile AI Settlement assets under construction Select details button Select to be settled in full radio button Allocation structure :select A1( CO allocation structure) Default object type :select FXA asset

Select % settlement check box Select equivalence numbers check box Select amount settlement check box Under valid reserves for fixed assets :Select settlement required Document type Max no. distribution rules Residence time Save Select back arrow two times Double click on assign settlement :Profile to company code Select position button Give the company code :BIL :AA (Asset Posting) :999 :12 months

176

Enter For company code BIL assign settlement profile AI Save Press enter to save in your request Creation of capital work in progress asset master (AS01) Give the asset class Company code Enter Description Capitalized on :CWIP General :01.12.2008 :BIL4000 capital work in progress :BIL

Select time dependent tab Business area :BILH

Select depreciation areas tab Depreciation key Save Note down the asset no.500001-0 Asset purchase posting (F-90) Give the doc .Date & Posting date Type Company code Posting key Vendor account Give the amount Business area Text Posting key Account no. Transaction type Remove the TDS codes :01.12.2008 :KR :BIL :31 :2001 :600000 :BILH :Machinery purchase posting :70 :500001-0 :100 External acquisition :0000 (no depreciation)

177

Enter Amount Text Document Simulate & Save Freight payment (F-02) Give the Doc date & Posting date Type Company code Posting key Account Transaction type Enter Give the amount Text Posting key Account no. Enter Amount Business area Text Document simulate & save Creation of machinery master (AS01) Give the asset class Company code Enter Description Capitalized on to days date Select time dependent tab Business area :BILH :Machine no.15 :BIL 2000 Dept A :BIL :* :BILH :+ :10000 :Freight payment :50 :200105 SBI current a/c :SA :BIL :70 :500001-0 :100 :15.12.2008 :* :+

178

Select depreciation area tab Depreciation key Useful life Period :BIL1 :15 years :6 months

Ordinary depreciation start date :Todays date Save Note: the asset no.200004-0 Settlement of CWIP to machine no.15 Path :Accounting Financial accounting Fixed assets Posting-Capitalized asset under construction distribute (Tr code is A1AB) Company code Asset Sub number Execute From the menu select Edit select select all (F5) Select enter button Category Settlement receiver Give the percentage Select back arrow Save Select settlement button (Shift +F8) Give the asset value date Text Deselect text run check box Execute Go and see the document (FB03) Enter :13.12.2008 (Todays date) :CWIP settlement :select FXA asset :200004-0 :100 :BIL :500001 :0

179

Note :In live environment you take a purchase of machinery dont enter directly Asset account, first enter in Capital Work in Progress after commissioning added all charged convert to asset accounting.

NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES) New general ledger (Multiple ledgers) Accounting group V3 India group Accounting group K4 US Group Accounting group V6 UK Group April March B1 Leading ledger 0L Jan Dec K4 Non leading ledger M1 July-June V6 Non leading ledger 2 M2

When we create ledgers automatically ledger group will be created We can assign in ledger group number of legers for 0L we can assign all and M2 At the time of posting If we dont specify ledger group It updates all legers. FC (Foreign currency)Revaluation Gain /Loss to charge to P & L account -For leading ledger 01 and non leading ledger M1-For UK group purpose it is to be added to asset and calculate depreciation for ledger group 0L-Assign M1 ( 0L is already assigned) At the time posting it updates ledgers 0L and M1 Representative ledger and non-representative ledger When we create legers ledger group will be created that ledger will be called representative ledger we are assigning for 0L ledger group M1 This is called non representative ledger. At the of posting system checks representative ledger periods are open or not we need not open non-representative ledgers periods. Eg: Ledger GRP (Group)-0L Ledger 01 Representative ledger (April 2008- March 2009) January 2009 period should be open Ledger M1 Non-representative ledger January 2009 December 2009 January 2009 period can be closed. We are creating M1 ledger Automatically M1 ledger GRP is created we are assigning ledger 0L (0L=Leading ledger) Always leading ledger only should be the representative ledger.

180

Document types and no.ranges are required non-leading ledgers All non-leading ledgers we specify all document types and given only one number range we give number range interval only for one number range.

CUSTOMIZATION Activate new general ledger accounting: Path :SPRO-Financial accounting Financial accounting global settings Activate new general ledger accounting Select new general ledger active check box Save (This is one time job work at client place) Define ledgers for general ledger accounting Path :SPRO-Financial accounting (new) -Financial accounting global settings (new) Legers Ledger-Define ledgers for general ledger accounting Select new entries button Ledger :M1 ( Text filed)

Ledger name :Non leading ledger for BIL Totals table Ledger :FAGLFLEXT :M2

Ledger name :Non leading ledger for BIL Totals table Save Save in your request Ignore the message press enter Define and activate non-leading ledgers: Same path Give the ledger Enter Select new entries button Company code :BIL :M1 :FAGLFLEXT

181

Fiscal year variant

:K4

Posting period variant :BIL Save Press enter to save in your request Select back arrow

Give the ledger

:M2

Enter Select new entries button Company code :BIL Fiscal year variant :V6 (July to June) Posting period variant :BIL Save Define ledger group: Same path Select ledger group :0L

Double click on ledger assignment folder Select new entries button Ledger :M1

Deselect representative ledger check box Save Ignore the warning message press enter Press enter to save in your request Define document types for entry view in a ledger Path :SPRO-Financial accounting (new)-Financial accounting global settings (new) Document Document types Define document types for entry view in a ledger. Give the ledger :M1 Enter Select new entries button Type Number range SA 40 (give it any number range) KR 40 DR 40 WE 40

182

WA 40 RE 40 RV 40 WI 40 AA 40 Save Press enter to save in your request Select back arrow Give the ledger :M2 Enter Select new entries button Type SA KR DR WI WA WE WL RE RV AA Save Define document types for general ledger view Same path Give the ledger :M1 Enter Select new entries button Type Number range SA 45 KR 45 DR 45 WA 45 WI 45 WL 45 WE 45 RE 45 RV 45 AA 45 Save Press enter to save in your request Number range 41 41 41 41 41 41 41 41 41 41

183

Select back arrow Ledger M2

Enter Select new entries button Type SA KR DR WA WE WI WL RE RV AA Save Number range 46 46 46 46 46 46 46 46 46 46

Define document number ranges for entry view: Path :Up to document the path is same Document number rages Documents in entry view Define document number ranges for entry view Give the company code :BIL

Select change intervals button Select interval button No.range Year From no. To no. Enter Select interval button No.range Year From no. To no. Enter and save :41 :2008 :1200001 :1300000 :40 :2009 :1100001 :1200000

184

Ignore the warning message press enter Define document no.range for general ledger view: Path :Up to document the path is same Document no.rages Documents in general ledger view Define document no.range for general ledger view Give the company code Select change intervals button Select interval button No.range Year Form number To number Enter Select interval button No.range Year From number To number Enter & save Ignore the warning message press enter END USER AREA Posting of transaction : Path :Accounting Financial accounting-General ledger Posting Enter general posting for ledger group (Tr code is FB01L) :Todays date :SA :blank :BIL :40 :46 ;2008 :600001 :700000 :45 :2009 :500001 :600000 :BIL

Give the document date Type Ledger group Company code Posting key

185

Account number Enter Give the amount Business area Text Posting key Account no. Enter Amount Business area Text Document Simulate & Save Document date Type Ledger group Company code Posting key Account no. Enter Amount Business area Text Posting key Account no. Enter Amount Business area Text Document Simulate & Save

:200100 Cash A/c

:100000 :BILH :Equity share capital receipt :50 :100000 Equity share capital

:* :BILH :+

:Todays date :SA :0L :BIL :40 :200100 Cash A/c

:50000 :BILH :Equity share capital receipt :50 :100000 Equity share capital

:* :BILH :+

0L Leading ledger

April 2008- March 2009 10th Period 105000

2008

186

M1 Non-leading ledger Jan 2009-Dec 2009 1st Period 105000 M2 Nonleading ledger July 2008 June 2009 7th Period 100000

2009 2008

To view the ledger Path :Accounting Financial accounting General ledger Account Display balances (new) (Tr cod is FAGLB03) Account number Company code Fiscal year Ledger Execute Double click on balance 105000 To view the document Select document no.check box Select display document button Select call up document overview button Select back arrow 3 times Select choose ledger button Change the ledger to M1 Enter Change the Fiscal year to 2009 Execute Select back arrow Select choose ledger button Change the ledger to M2 Enter Change the fiscal year 2008 Execute Segments Creation :100000 :BIL :2008 :0L

187

Scenario Company code | Business area | Profit centers

:BIL :HYD :Cement, Steel

Future scenario Company code | Segment | Profit center

BIL HYD Cement , Steel

In future there will not be any developments Business areas In case of automatic line items generation business Area will not be picked up

Segments will be assigned in the for profit center

Profit center through derivation rules Profit center is updated automatically segment also will be updated.

Segment creation Path :SPRO-Enterprise structure Definition Financial accounting -Define segment Select new entries button Segment Description BGL Bangalore segment HYD Hyderabad segment Select save button or Ctrl+S Press enter to save in your request Assign segment in profit centers: Path :Accounting Controlling profit center accounting Master data profit center Individual processing change (Tr code is KE52) Profit center Enter Segment Enter Select activate button (Shift +F1) :select HYD :select Steel

One more profit center

188

Profit center Enter Segment Select activate button

:Cement

:select HYD

DOCUMENT SPLITTING In document splitting, line items are split according to selected dimensions so that we can draw financial statements for the selected dimensions at any time. Eg: Profit Center wise, Segment wise Sales Party X Account Dr To Sales Steel To Sales cement Due to document splitting Party X Account Dr Party X account Dr To Sales Steel To Sales Cement Creation of 3GL masters :FS00 A) Sales Steel Sales B) Sales Cement Sales C)Zero balance clearing a/c current liabilities & provisions 100000 80000 Steel profit center 20000 Cement profit center

80000 20000 80000 20000

Steel Cement Steel Cement

FS00 GL Account no. Company code :300010 :BIL

Select with template button Give the Gl A/c No. :300005 Sales local own goods Company code Enter Change short text and GL account long text to sales Steel Save Select edit cot element button :BIL

189

Valid from 01.04.2008 to 31.03.9999 Enter Cost element category Save Second a/c Give the GL A/c No. Company code Select with template button Give the GL A/c Company code Enter Change short text and GL a/c long text to sales Cement Save :300010 :BIL :11 Revenues

:300011 :BIL

Select edit cost element button Cost element category Save :11 Revenues

GL A/c No. Company code Select with template button

:100530 :BIL

Give the GL A/c No.100505 VAT payable Company code Enter Change short text and GL account long text to Zero balance clearing Select create /Bank /Interest tab Change field status group to G067 (Reconciliation account) Save Classify G/L Accounts for document splitting: :BIL

190

Path :SPRO-Financial accounting (new)-General ledger accounts(new) Business transactions Document splitting-Classify G/L accounts for document splitting Give your chart of accounts :BIL Enter Select new entries button Account from Account to 100000 299999 300000 399999 400000 499999 Save Press enter to save in your request Category 01000 30000 20000 Description Balance sheet account Revenue Expense

Define Zero balance clearing account Same path Select account key :000

Double click on accounts folder Chart of Accounts Enter Select new entries button Give the G/L account :100530 Zero balance clearing A/c Save Press enter to save in your request Activate documents splitting Same path Select document splitting check box Save Press enter to save in your request :BIL

END USER AREA Posting of sales (F-22) Give the document date Type Company code :Todays date :DR :BIL

191

Posting key Customer Account Enter Amount Business area Text Posting key Account Enter Business area Text

:01 :100000

:80000 :BILH :Sales invoice posting :50 :300010 Sales Steel

:BILH :+

Select profitability segment button (right arrow button profit center steel) Ignore the warning message press enter Give the profit center Steel Select continue button One more item Posting key Account no. Enter Amount Business area Text :* :BILH :+ :50 :300011 Sales Cement

Select profitability Segment right arrow button Give the profit center Select continue button Document Simulate From the menu select Document Simulate General ledger button Save From the menu select Document Display :Cement

192

Select general ledger View button

CENTRAL EXCISE AND SALES TAX

CIN: Country India Version MM Consultant SD consultant FI consultant Creation of accounts and assignment of accounts Central excise is an Indirect Tax This will be charged at the time of sales, sales men (Removal of goods) Central excise registration :15 digits code

(10 digits will be income tax PAN + 5 digits central excise) Central excise registration will be plant wise Central excise rates are given in central excise tariff chapter IDs :8 digits code Under chapter id we have material description and rate Basic Excise Duty (BED) 14% maximum (now changed to 10%) Additional excise duty (AED) Products like textiles 15% of basic amount Now no AED Special Excise Duty (SED)- Tobacco related products 8% on invoice original value Education cess 2% (on 8% excise duty) Higher and secondary education cess 1% (on 2% ED) CEN VAT (Central Excise Value Added Tax) Earlier MODVAT Where we pay excise duty at the time of purchase, the excise amount can be adjusted when we pay excise duty on sales to excise dept. (Though collected from customer) RG23A Part 1 Quantity updation Part 2 value updation Part 1 Quantity updation Excise duty on consumable 100% CENVAT same year Excise duty on Capita Goods

RG23C

193

Part 2 value updation PLA

50% current year 50% next year

Personal Ledger Account Bank excise credits and debits (Excise return 1) (Earlier it was RT12 monthly return) To pay excise before 5th of next month To file the return before 10th next month Finished goods register

ER1

RG1

Purchase scenario: Consumable purchase Basic price Excise 8% 100 8 ---108 4.32 ----112.32 capita goods purchase (stores) 200 20 ---220 8.8 ---228.8

10%

VAT 4%

Goods receipt for consumables A) Goods receipt entry Inventory RM local DR 100 To GR/IR clearing RM LCL 100

B) Excise entry RG 23 A BED DR To CENVAT clearing Invoice verification for consumables GR/IR clearing RM LCL CENVAT clearing A/c VAT Receivable To party DR DR DR 100 8 4.32 112.32 8 8

Goods receipt for capital goods A) Goods receipt entry

194

Inventory stores local DR To GR/IR clearing stores Local B) Excise entry RG 23C BED DR CENVAT on hold DR To CENVAT clearing a/c Invoice verification for capital goods GR/IR clearing stores LCL CENVAT clearing a/c VAT Receivable To party Sales scenario Basic price Excise rate 14% DR DR DR

200 200

10 10 20

200 20 8 .08 228.08

VAT 12.50%

1000 140 ----1140 142.5 ------1283

Sales billing : Customer A/c Dr 1283 To Sales 1000 To CENVAT suspense 140 To VAT payable 142.50 Excise invoice creation CENVAT suspense a/c Dr 140 To Excise duty payable 140 Excise Balances: RG23A 8 140 5 6 129 RG23C 10 PLA

Purchase Payable on sale To pay

PLA Deposit PLA A/c Dr To Bank

150 150

195

Excise utilization Excise duty payable DR To RG23A BED To RG23C BED To PLA

140 5 6 129

10) Sales tax Payment to Dept VAT Payable VAT Receivable To Bank 143 13 130

VAT Payable Dr 143 To VAT Receivable 13.10 To Bank 129 11) Final balances in excise registers RG23A RG23C PLA 8 10 150 5 6 129 ----------------------------------------------------------------3 4 21 ======================================

Purchase /Deposit Utilized at the time of sale Closing balance SAP:

Tax procedures TAXINJ: Formula based TAXINN condition based In new implementations TAXINN Client 000-SAP has given TAXINN and TAXINJ Excise conditions /Service tax conditions / Education cess conditions /Sales tax conditions.

CENTRAL EXCISE CUSTOMIZATION Activate Country Version India for specific fiscal year Path :SPRO-Financial accounting Financial accounting global settings Tax on sales /purchases Basic settings- India-Activate country version India for specific fiscal years Select position button

196

Component :select IND Enter For component IND select active check box Save Press enter to save in your request

Check and change settings for tax processing Path :Up to tax on sales / purchases the path is same Basic settings-Check and change settings for tax processing Select new entries button Process :B1 Description Tax type Posting indicator Save Press enter to save in your request Select back arrow Select process Select copy as button Change the process to B2 Change the description :A/P CST Posting indicator Enter & Save Select :B1,B2 :select 3 (Distribute to relevant expense /revenue items) :B1 :A/P Basic Excise duty (A/P BED) :select 2 (input tax) :select 2 (separate line item)

Select copy as button Change the process to B3 Change description to APVAT Enter Change the description to AR VAT Other things are common Press enter and Save Change process to B5

197

Change description to AR CST Change tax type to Posting indicator Enter and Save Select B5 Select copy as button Change the process to B6 Change the description to AR VAT Other things are common Press enter & Save :1 :2 separate line item

Define condition types: Path :Up to tax on sales /purchases the path is same -Basic settings-Check calculation procedure Double click on define condition types Select new entries button Condition type Description Access sequence Condition class Calculation type Condition category :BIL1 :AP Excise BED :select JTAX (IN: Excise Access) :select D (Taxes) :select A (percentage) :select D (Tax)

Select item condition check box Save Press enter to save in your request Select back arrow Select Select copy as button Change the condition type change to :BIL2 Change the description to Access sequence Enter & Save :APCST :Change to JST1 (India Sales tax access) :BIL1

198

Select Select copy as button Change condition type to Change description Other things are common Enter & Save Define procedures

:BIL2

:BIL3 :A/P VAT

Path :Up to tax on sales /purchases the path is same Basic settings Check calculation procedure Double click on define procedures Select new entries button Procedure Description Save Press enter to save in your request Select :TAXINN Double click on control data folder :TAXINN :Sales tax India

Select new entries button Step 100 110 Condition Description From type Select Base BASB amount Calculated 100 cell To Statistics Print Base Account type key Select 362

100

Select statics check box Select X Select static check box Select B2 B1

120 150

BIL1

AP Excise BED Basic +Excise

100 110

100 140

160

BIL2

A/P CST

150

150 199

170

BIL3

A/P VAT

150

150

X Select X

B3

Save

Assign country to calculation procedure Path :Up to tax on Sales /Purchases the path is same Basic settings Assign country to calculation procedure Select position button Country Enter For country IN assign procedure TAXINN Save Press enter to save in your request Define tax codes for sales and purchases Path :Up to tax on sales / purchases the path is same Calculation Define tax codes for sales and purchases (Tr code is FTXP) Give the country Enter Tax code Enter Give the description Tax type Enter Save Tax code Enter Description Tax type Tax percentage rate Enter & Save :V1 Dummy tax code for purchases :V for input tax :0 :IN :V0 :0% Input tax :V (input tax) :IN for India

:V1

200

Tax code Enter Description Tax type Enter & Save One more tax code Tax code Enter Description Tax type Enter & Save

:A0

:0% output tax :A ( out put tax)

:A1

:Dummy tax code for sales :A (Out put tax)

Creation of GL masters (FS00) To Copy 200156 RG23A BED A/c Current assets, Loans & Advances to copy 200155 VAT receivable RG23C BED A/c Current Assets, Loans and Advances to copy 200155 receivable 200158 CENVAT on hold Current Assets, Loans and Advances to copy 200155 VAT receivable PLA Account Current Assets, Loans & Advances to copy 200155 VAT Receivable VAT receivable already created CENVAT A/c clearing current liability provision copy 100505 VAT

200157 VAT

200159

200155 100506 payable 100507

CENVAT A/c suspense current liability & provisions copy 100505 VAT payable Excise duty payable A/c current liability & provision copy 100505 VAT payable

100508

201

100509 100505 Save

CST payable A/c current liabilities & provision X copy 100505 VAT payable already created

Note :In all accounts tax category * posting without check box

Define tax accounts Path :Up to tax on sales /purchase the path is same posting Define Tax accounts (Tr code is OB40) Double click transaction B1 A/P Excise BED Give the chat of accounts Enter Save Select posting key button Debit Credit Save Press enter to save in your request Select accounts button Give the account no.100506 CENVAT clearing A/c Save Press enter to save in your request Select back arrow Double click on transaction B3 APVAT Save Select posting key button Debit 40 Credit 50 Save Press enter to save in your request 40 50 :BIL

202

Select accounts button Give the A/c no.200155 VAT receivable Save Press enter to save in your request

Maintain excise registration Path :SPRO-Logistic general Tax on goods movements India Basic settings maintain excise registrations Select new entries button Excise registration :2

(ECC number means excise control code) ECC no. 1234

Excise Registration no.(15 digits code) (10 digits PAN other 5 Excise no.) Excise range Excise division Commissionerate Excise invoice items(EI) :123456

:Kukatpally range :Kukatpally division :Hyderaba commissionerate :999

Select partial credit check box Save Press enter to save in your request Maintain company code settings Same path Select new entries button Select company code Select details button CENVAT document type :SA :BIL

Utilization FI document type :SA

203

Select debit account override check box Select auto adjustment indicator check box Select immediate credit on capital goods check box First month Excise selection days select April :30 days

No.of excise invoice selection :999 Excise invoice selection procedure Save Press enter to save in your request Maintain plant settings: Same path Select new entries button Plant :BILP Excise registration :002 (This is plant level) No.GRS per Excise invoice :select Multiple goods receipt multiple credits Save Maintain excise groups: Same path Select new entries button Excise group Description Plant Excise registration :2 :Excise group for BILP :BILP :2 :FIFO

No.GRS per excise invoice multiple goods receipts, multiple credits Select default challan quality in GR check box Select EI capture check box under MIGO settings Select post excise Invoice MIGO check box Select duty different at GR check box Select update RGI at MIGO check box Save Press enter to save in your request

204

Note :MRO Invoice verification Maintain series groups Same path Select new entries button Series group :2 Series description :BILP series group Excise registration :2 Save Press enter to save in your request Maintain excise duty indicators: Same path Select new entries button Excise indicator 1 :100% Tax Excise indicator 2 :50% Tax Excise indicator 3 :Nil Tax Save Press enter to save in your request Maintain excise defaults: path :Up to India the path is same Basic settings Determination of excise duty maintain excise defaults select new entries button Tax procedure :TAXINN CVD condition JCV1: A/P BED condition type :BIL1 A/R BED condition type :BILA BED percentage :BIL 4 Save Press enter to save in your request Maintain chapter IDs:(8Digists excise code) Path :Up to India the path is same Master data Maintain chapter Ids Select new entries button Chapter ID :50000001 Unit of measurement for excise kg Description as per law :Chemicals Save Create request in your Work Bench Request for BIL save Select next entry (F8) button

205

Chapter ID :55000001 Unit of measurement for excise kg Description as per law Steel Save

Specify G/L Accounts per excise transaction Path :Up to India the path is same Account determination specify GL accounts per excise transaction Select new entries button Excise group Excise transaction type Company code Chart of Accounts RG23A BED RG23C BED MODVAT clearing G/L account per PLA BED CENVAT on hold :select 2 :GRPO (Excise Invoice for goods receipt against PO) :BIL :BIL :200156 :200157 :100506 (CENVAT clearing ) :200159 :200158

CENVAT suspense account :100507 PLA on hold Save Press enter to save in your request The same way the you send the accounts for all excise transaction types. For excise transaction type DLFC same as above Save Note : PLA on Hold To Bank Dr :200159

PLA A/c Dr To PLA on Hold A/c (This is used for next year carry forward)

206

Specify SAP Script forms Path :Up to India the path is same Business transactions Excise registers Specify SAP script forms Select all the registers of company Code :IN01 Select copy as button Change the company code to BIL for Registers and returns Save press enter to save in your request Maintain number ranges Path :Up to India the path is same Tools-Number ranges Object :Select J_1IINTNUM (Internally document number to be generated ) Select number rages button Select change intervals button Select interval button Number rage :01 Year From no. To no. Save Ignore the message press enter Select back arrow two times Object :Select J_1IRG23A1 (RG23A part 1 no. range object) :2008 :1 :100000

Select number rages button Excise group :select 2 Select change intervals button Select interval button No. range Year :01 :2008

From number :100001 To number Enter & save Ignore the warning message press enter :200000

207

Select back arrow two times Object :J_1IRG23A2 This is (RG23A part II Number rage object)

Select number rage button Excise group :2 Select change intervals button Select interval button No.range Year From no. To no. Enter & save Ignore the warning message press enter Select back arrow two times Select object J_1IEXCLOC (Local excise invoice number rage for sales) Select number ranges button Series group :2 Select change intervals button Select interval button No.range Year :01 :2008 :01 :2008 :200001 :300000

From number :300001 To number Enter & Save Ignore the warning message press enter Select back arrow two times Select object :J_1IINTPR2 despatch series number Select number ranges button Excise group :2 Select change intervals button Select interval button No.range :01 :400000

208

Year From no. To no. Enter & save

:2008 :500001 :600000

Ignore the warning message press enter Excise rates maintenance Use the Tr code is J1ILN (India local menu) (This have no path) Path :Indirect taxes -Master data -Excise rate maintenance (Tr code is J1ID) Select material & chapter ID combination radio button Select maintain button(F5) Select new entries button Material Plant Chapter ID Material type GR with reference Declared Declaration date :BILRM1 :BILP :5000001 Chemicals :Raw materials :select multiple goods receipt , multiple credits :1 :29.02.2008

One more Material Plant Chapter ID Material type GR with reference Declared Declaration date Save Select back arrow :BILFG :BILP :5500001 Steel :RG1 :Multiple goods receipts, Multiple credits :1 :29.02.2008

209

Select CENVAT determination radio button Select maintain button Select new entries button

Give the plant Input material Output material Intimation date Save Select back arrow

:BILP :BILRM :BILFG :01.04.2008

Select vendor excise details radio button Select maintain button Select new entries button Vendor :2001

Excise indicator for vendor :1 ( 100% Tax) Type of vendor Save Select back arrow Select customer excise details radio button Select maintain button (F5) Select new entries button Give the customer no. :200101 Excise indicator for customer Save Select back arrow Select excise indicator for plant radio button Select maintain button Select new entries button Company code Plant First month :BIL :BILP :select April :select 1 (100% Tax) :select manufacturer

210

Excise indicator for company :select 1 (100% Tax) Save Select back arrow Select excise indicator for pant and vendor radio button Select maintain button Select new entries button First column excise indicator :select 1 Second column excise tax indicator for vendor Third column excise tax indicator for vendor Save Select back arrow Select excise indicator for plant & customer radio button Select maintain button Select new entries button First column excise tax indictor for company :select 1 (100% tax ) :select 1 (100% Tax) :Select 1 (100% tax)

Second column Excise indicator for vendor :Select 1 (100% tax) Third column excise tax indicator vendor :select 1 (100% tax) Save Creation of condition records (FV11) (No path this one) Condition type :select BIL1 AP Excise basic

Select key combination button Select plant /vendor /material radio button Enter Plant Vendor Material Amount Valid from Valid to :BILP :2001 :BILRM1 :8 (Excise rate & Tax rupees) :01.04.2008 :31.03.2009

211

Tax code Save Select back arrow Condition type

:V0

:BIL3 A/P VAT

Select key combination button Select plant /vendor /Material radio button Plant Vendor Material Amount Valid from Valid to Tax code Save SD Excise customization SD consultant job Define condition types Path :SPRO-Sales & Distribution basic functions Pricing Pricing control Define condition types Double click on maintain condition types Select new entries button Condition type Description Access sequence Plus/ Minus Condition class Calculation type :BIL4 :A/R Basic excise duty (AR BED) :JEXC (India Excise Access) :Select A Positive :select A discount or Surcharge :select A (Percentage ) :BILP :2001 :BILRM1 :4 :01.04.2008 :31.03.2009 :V0

Select Item condition check box Select amount /percentage check box

212

Save Press enter to save in your request Select back arrow Select :BIL4 Select copy as button Change the condition type to BILA Description A/R Excise BED (100% copy) Access sequence Enter & Save Select BIL4 & BILA Select copy as button Change condition type to BIL5 Description Access sequence Plus / Minus Calculation type Condition class Condition category Enter Change the condition type to BIL6 Description Access sequence Plus or Minus Calculate type Condition class Condition category Enter & save Define account keys: Path :SPRO-Sales & Distribution Basic functions Account assignment/costing Revenue account determination Define and assign account keys Double click define account key :AR VAT :change to JLST (India Local sales tax access) :Blank : A (Percentage) :select D taxes :select D tax :A/R CST :select JCST (India Central Sales Tax :Access) : Blank :A (Percentage) :change to D (Taxes) :select D (Tax) :select JDUM (India 100 copy of other fields are values)

213

Select new entries button Account key :B4 Name :A/R Excise BED Account key Name :B5 :AR CST

Account key :B6 Name :AR VAT Save Press enter to save in your request Check and change settings for tax processing Path :SPRO-Financial accounting Financial accounting global settings Tax on sales /Purchases Basic settings Check and change settings for tax processing Select B2 and B3 Select copy as button Change the process to B5 Change the description to A/R CST Tax type Posting indicator Enter Change process to :B6 :select 1 (Output tax) :select 2 (separate line item)

Change the description to A/R VAT Tax type Enter & save Save in your request Define tax accounts: Path :up to Tax on sales /Purchases the path is same Posting Define tax accounts (Tr code is OB40) Double click on truncation :B5 AR CST :change to 1 Output tax

Give your Chart of Accounts :BIL Enter

214

Save Select posting key button Debit Credit :40 :50

Select save button Press enter to save in your request Select accounts button Give the account no.100509 CST (payable) Save Press enter to save in your request Select back arrow Double click on transaction :B6 ARVAT Save Select posting key button Debit :40 Credit :50 Save Press enter to save in your request Select accounts button Give the account no.100505 VAT payable Save Press enter to save in your request Maintain pricing procedures Path :SPRO-Sales & Distribution Basic functions Pricing pricing control Define and assign pricing procedures Double click on maintain pricing procedures Select new entries button Procedure :BIL Description :BIL domestic Pricing procedure Save Press enter to save in your request

215

Select :BIL double click on control data folder Select new entries button

Step 100

Condition Description From type PR00 Price

To

Require Statistics Print Select Check box () Select Check box () X

Account key ERL

Subtotal

100

100

Select Check box () B4

200

BIL 4

A/R Basic excise duty

100

100

210

Basic +Excise Base value

100

200

400

100

--

410

BILA

A/R BED (100% copy) Basic +Excise

200

200

Select Check box () Select Check box () Select Check box () Select Check box ()

420

400

410

450 460 500

BIL5 BIL6

AR CST AR VAT Basic +Excise+ Sales tax

420 420 420

X X 460 Select Check box ()

B5 B6

Save

Define pricing procedure determination

216

Path :Up to pricing control the path is same Define and assign pricing procedures ( Tr code is OVKK) Double click on define pricing procedure determination Select position button Sales organization :BILS enter For BILS change the pricing procedure to BIL Save Press enter to save in your request Define tax determination rules Path :SPRO-Sales and Distribution Basic functions Taxes Define tax determination rules Select new entries button Tax country :IN Sequence :1 Tax category :BIL5 Tax country :IN for India Sequence :2 Tax category :BIL6 Name:A/R VAT Save Press enter to save in your request Define tax relevancy of mater records: Same path Double click on customer taxes Select new entries button Tax category Name BIL5 A/R CST BIL5 A/R CST BIL6 A/R VAT BIL6 A/R VAT Save Press enter to save in your request Select back arrow Double click on material taxes Select new entries button Tax category BIL5 Name A/R CST Tax classification 0 Description Nil Tax Tax classification 0 1 0 1 Description Nil Tax Taxable Nil Tax Taxable

217

BIL5 BIL6 BIL6

A/R CST A/R VAT A/R VAT

1 0 1

Taxable Nil Tax Taxable

Save Press enter to save in your request Assign delivering plants for tax determination (OX10) Same path Select position button Plant :BILP Enter Select plant :BILP Select details button Select address button(Shift +F5) Region :select AP (Andhra Pradesh) Enter & Save Press enter to save in your request Assignment of accounts for automatic postings Tr code is VKOA Double click on Table 1 Select new entries button Application area Condition type Chart of Accounts Sales organization :V :KOFI :BIL :BILS

Account assignment group for customer :01 domestic revenues Account assignment group for customer :03 finished goods

Account assign group for account key :B4 AR Excise duty GL Account 100507 (Send VAT suspense account) Save Press enter to save in your request SD END USER AREA Assign tax classification material master (Tr code is MM02) 218

Give the material no.BILFG Press select view button Select sales :sales organization data 1 Select organization levels button Plant Sales organization :BILP :BILS

Distribution channel :BD Enter For tax classification tax category BIL5 0 taxable For tax classification tax category BIL6 1 taxable Save Enter tax classification in customer master (Tr code is XD02) Select the customer Company code Division :200101 :BIL :BS

Select customer sales area button Double click on sales organization Enter Select sales area data button Select billing documents tab For tax category Tax classification Save :BIL6 :1 (taxable) :BILS

Creation of condition records (Tr code is VK11) Condition type :select BIL4 A/R basic excise duty

Select key combination button Select material radio button Enter

219

Sales organization distribution channel Material Amount Valid from to Valid to Save Select back arrow

:BILS :BD :BILFG :10 :01.04.2008 :31.03.2009

Select condition type BILA (A/R BED 100% copy) Select key combination button Select sales organization radio button Enter Sales organization Amount Valid from Valid to Save Select back arrow Condition type :select BIL6 AR VAT :BILS :100 :01.04.2008 :31.03.2009

Select key combination button Select country /Plant/Region /Material radio button Enter Country Plant Region Material Amount Valid from Valid to Tax code Save :IN :BILP :AP :BILFG :4 (Percentage) :01.04.2008 :31.03.2009 :select A1 (Dummy tax code for sales)

220

To check whether 0% input tax code and 0% output tax code assigned to company code to BIL Path :SPRO-Financial accounting Financial accounting global settings Tax on sales /Purchases -posting -Assign tax codes for non taxable transactions(OBCL) Select position button Company code enter For company code Input tax code Output tax code Company code enter For company code Input tax code Output tax code Save Press enter to save in your request Creation of Purchase order (ME21N) Purchase org Company code Vendor Enter Give the purchasing group Item Material PO Quantity Net price Currency Plant Enter :BIL :10 :BILRM1 :100 Kgs :75 :INR :BILP :BILR :BIL :2001 :BIL :V1 :A1 :BIL :V0 :A0 :BIL :BIL

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Select invoice tab Tax code Enter Select Taxes button Select back arrow Save Not the purchase order no.4500017094 :select V1 dummy tax code for purchases

To open material periods for January (MMPV)

From company code period Fiscal year

;BIL :10 :2008

Select check and close period radio button Execute Ignore the warning message press enter (Note : Use the Tr code J1EI for creation of Excise Invoice nos following the other steps same above) Give the Excise invoice no. and date Goods receipt ( Tr code is MIGO) Select goods receipt Give the purchase order no.4500017094 Enter Quantity in delivery note Select item ok check box Select where tab Storage location Press enter Select excise invoice tab Give the excise invoice no.1 Excise invoice Date :Todays date :HYD :100 kgs

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Save Select display button Enter Select document information tab Select FI documents button Select back arrow Select excise invoice tab Select more data button Select part 2 tab Select accounting document no. Invoice verification (MIRO) Invoice date Posting date Reference :05.01.2009 :11.01.2009 :51

Select calculate tax check box Text Tax code Purchase order no. Enter Give the amount Enter Business area Select payment tab Payment term Enter & Save From the menu select invoice document display Select follow on documents button To print excise registers: (Tr Code is J1ILN) Path :Indirect taxes Registers Excise tax Extract (J2I5) :BILH :Base line date (Todays date) :0001 :8424 :Invoice verification :V1 (Dummy tax code) :4500017094

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Excise group Start date End date

:2 :01.01.2009 :31.01.2009

Select any register radio button Select RG23A part I check box Select RG23A part II check box Execute Enter Select back arrow Select print utility program (TR code is J2I6) Select RG23A part 1 radio button Execute Excise group Start date End date Execute Output device Select print preview button Select back arrow two times Select RG23A part II radio button Execute Excise group Start date End date Execute Output devise Select print preview button To view sales tax register (Tr code is J 1 I L N) Indirect taxes Registers Sales tax sales tax register (J1I2) :LP01 :2 :01.01.2009 :31.01.2009 :LP01 :2 :01.01.2009 :31.01.2009

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Company code Tax code LST condition type Execute

:BIL :V1 :BIL3

SD EXCISE Creation of sales order (VA01) Order type Sales organization :OR :BILS

Distribution channel :BD Division Enter Sold to party PO Number PO date :200101 :2 :Todays date :BS

Required delivery date :Todays date Delivery plant Payment terms Item Material Order quantity Enter Ignore the message press enter Select item :10 From the menu select GotoItem conditions From the menu select Edit In complication log (Ctrl +F8) Select save button Note the sales order no.11771 Delivery (Tr code is VL01N) :BILP :0001 :10 :BILFG :10 Kgs

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Give the shipping point Order no. Enter

:BILH :1171 :Todays date

Actual goods inward received date Select item Select picking tab Picked quantity :10

:10 Kgs

Select post goods issue button From menu select out bound delivery Display Enter From the menu select Environment-Document flow Keep the cursor on go goods delivery no. Select display document button Select accounts document button Select account document no. Post : Inventory FG IN/DE Stock FG 700 700

Sales Billing (VF01) Select the delivery no. Select execute button Save From the menu select billing document display Select accounting button Select accounting document no. Excise invoice creation (Tr code is J1ILN) Path :Indirect taxes Sales /Out bond movements-Excise invoices For sales order Out going Excise invoice create /Change /Display (Tr code is J1IIN) Select from billing button (F5)

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Enter Excise group to Serious group Select utilization button (F6) Save Ignore the warning message press enter CENVAT suspense A/c Dr To Excise duty payable Go and see sales billing display (VF03) Give the billing document no.90036108 Select accounting button Select accounting document no. RG23A BED posting (F-02) Give the document date Type Company code Posting key Account no. Enter Amount Business area Text Posting key Account no. Enter Amount Business area Text Document Simulate & Save :* :BILH :+ :50000 :BILH :RG23A Debit :50 :200105 Bank account :Todays date :SA :BIL :40 :200156 (RG23A BED) :2 :2

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PLA Deposit (F-02) Give the document date Type Company code Posting key Account no. Enter Amount Business area Text Posting key Account no. Enter Amount Business area Text Document Simulate & Save :* :BILH :+ :100000 :BILH :PLA deposit :50 :200105 Bank account :Todays date :SA :BIL :40 :200159 (RG23A BED)

Excise duty payment: (Tr code is (J1ILN) Path :Indirect taxes Sales /Out bond movements fortnightly payment (J2IUN) Company code Plant Excise group Period Business area Execute RG23A Utilized Select duty button :6.60 :BIL :BILP :2 :01.03.2009 :BILH to Todays date

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Select Simulate button (F7) Select right mouse button Select continue button Save Go and see the document (FB03) Document no. Company code Fiscal year Enter :38 :BIL :2008

FINANCIAL STATEMENT VERSION

Balance Sheet and Profit & Loss account format creation In India Companies Act Schedule VI format Summary Share capital Equity share capital Preference share capital Reserves & Surplus General Reserves Capital Reserve Secured loans Unsecured loans By using 0-9 levels we can get all 3 versions consultant creates 2 versions Summary Schedules In 000 Client SAP has given for India Bain. Path :SPRO-Financial Accounting General ledger Accounting-Business transactions-Closing Document-Define financial statement versions. Select new entries button Financial statement version :BIL1 100101 100102 100000 100001 Schedules Amount

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Name Maintain Language

Balance Sheet and Profit & Loss account :EN

Select item keys automatic check box Chart of Accounts Save Press enter to save in your request Select financial statement item button Keep the cursor on AML1 Select create items button Give the items :Balance Sheet :Profit & Loss account :Net profit /Loss transfer to Balance Sheet Enter Kept the cursor on profit and loss account Double click on No text exists against Liability +Equity Give item Enter Double click no text exists against Assets Give the item Assets Enter Keep the cursor on Assets Press select button (beside reassign button) Keep the cursor on Balance sheet Select resign (Shift+F6) button Select subordinate radio button Enter Keep the on liabilities Press select button (F9) Keep the cursor on Balance Sheet Select resign button (Shift+F6) Select subordinate radio button :Liabilities :BIL

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Enter Keep the cursor on Profit & Loss account Select create item button Give the items Give the items Enter Save Press enter to save in your request Keep the cursor on Liabilities Select create items button Give the Share capital Reserves & Surplus Secured loans Unsecured loans Enter Keep the cursor on Assets Select create items button Give the items :Net Fixed Assets :Net Current Assets :Misc. expenditure to the extent not written off Eg: Preliminary exp. Enter Keep the cursor on Income Select create items button Give the heads :Sales :Other Income :Inc/Dec in Stocks Enter Keep the cursor on expenditure Select create item button :Income :Expenditure

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Expenditure : Raw material consumption Personnel expenses Manufacturing expenses Administration Expenses Interest Depreciation Enter and Save Double click no text existent against net result :Profit Give the item :Net profit transferred from P & L Account Enter Keep the cursor on Net profit transfer from P & L Account Press select button (F9) Keep the cursor on reserves & Surplus Select reassign button (shift +F6) Select subordinate radio button Enter Double click on no text exists against net result loss Item Enter Keep the cursor on net loss transferred from P & L Account Press select button (F9) Keep the cursor on Misc. Expense to extend not written off Select reassign button Select subordinate radio button Enter Save :Net loss transferred from P & L Account

Assignment of accounts are to be assigned to the last note

Keep the cursor on Share Capital

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Select assign accounts button Enter From Account To Account Select debit check box Select credit check box From Account To Select debit check box Select credit check box Note :Expect 100000 all are same Enter Keep the cursor on net fixed assets Select assign accounts button From Account To Account Select debit check box Select credit check box Enter Keep the cursor on sales Select assign accounts button From account To account :300000 :399999 :200000 :299999 :100101 :199999 :100000 :100099

Select debit and Credit check box Enter Keep the cursor on Raw material consumption Select assign account button From account To account :400000 :499999

Select Debit and Credit check box Enter

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Keep the cursor net profit/loss transferred to Balance Sheet Select Assign account button From account :100100

Select Debit & Credit Check box Enter & Save To check whether all accounts assigned or not Select check button Select non assigned account check box Enter & Save Liabilities Sources of Funds: 100000 100001 100002 100003 ------100100 100101 100102 Amount

Share capital

Reserves & Surplus Secured loans Unsecured loans Total Liabilities

X X -----X =====

Double click on liabilities Start of group Liabilities End of group total liabilities

Select display total check box Enter Double click on share capital Start of group End of group :Source of funds :Share capital

Select display totals check box Enter

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Double click on Reserves & Surplus End group :Reserves & Surplus Select display total check box Enter Note :Same way secured and unsecured loans Double click on assets Start of group :Assets End of group :Total Assets Select display total check box Enter Double click on Net fixed Assets Start of group :Application of funds End of group :Net fixed Assets Select display total check box Enter Double click on Misc. expenditure to extend not written off End group Misc. expenditure to the expend not written off Select display totals Enter Double click on Profit & Loss Account End of Group :Net Profit /Loss for the year

Select display total check box Enter Double click on Income Start of group :Income End of Group Select display total check box Enter Double click on sales End of Group :Sales Select display total check box :Total Income

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Enter Double click on Expenditure Start of group :Total expenditure Select display total check box Enter Double click on Raw material consumption End of group :Raw material consumption Select display total check box Enter Double click on net profit /Loss transferred to Balance sheet Start of group :Net Profit /Loss transferred to balance Sheet Select display total check box Enter Double click on No text exist against P & L result Item :Net profit/Loss transferred to Balance Sheet

End of Group: Net profit/Loss transferred to Balance Sheet Select display total check box Enter & Save Open one more session : Path :Accounting-Financial Accounting General Ledger-Information system General Ledger reports-Balance Sheet/Profit loss Statement /Cash flow-General Actual/Actual comparisons- Balance sheet/Profit Loss Statement (S_ALR_87012284) Company code Business area :BIL :BILH

Financial Statement version :BIL1 Reporting year Reporting period Comparison year Comparison periods :2008 :1 to 16 :2007 :1 to 16

Select classical list radio button

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Select special evaluations tab Balance sheet type Select output control tab Company code summarization :Select 1 (Balance sheet per company code) Business area summarization :select 1(Balance Sheet per business area) Summary report Comparison type :3 :1 :1 (Standard Financial Statement )

Note :2 types of comparison in SAP 2008 2007 Sales 100 75 1) Percentage of Increase Current year Previous year *100 ---------------------------------Previous year 100-75/75*100=33.3

2) Percentage of growth

:Current year *100 -------------------Previous year 100/75=133

Scaling

:5/2

Scaling note : A) Only Rupees without paise B) Rupees with paise C)Rupees in lakhs without decimals D)Rupees in mission without decimals E)Rupees in crores without decimals

0/0 0/2 5/0 6/0 7/0

F)Rupees in laksh Thousands in decimals 5/2

Sales Rupees in lakhs (100000) 2 decimals

987654321.55 5 Decimals 2 decimals 9876.54

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Select execute button Select back arrow Select special evaluations tab Give the display currency dollar execute

ASSET ACCOUNTING REPORTS: 1.Depreciation forecast Path :Accounting Financial accounting Fixed assets Information system Reports on asset accounting Depreciation for cost Depreciation on capitalized assets (Depreciation simulation) (Tr code is S_ALR_87012936) Give the company code Report date Execute :BIL :31.03.2011

2. Fixed asset schedule as per schedule VI of companies Act

Gross block in the beginn ing year

Additi ons during the year

Sales /Trans fers during the year

Gro ss blo ck in the yea r end

Dep. for the year end

Acc.De p.in the beginni ng of year

Dep. for the year

Dep on sales /Trans fer

Acc. Dep in the year

Net blo ck in the yea r end

Net block in the beginn ing

Information systems Accounting Financial accounting Fixed assets Asset History sheet (Tr code is AR02 Give your company code :BIL Report date :31.03.2009 Select group totals only radio button Execute (Note :Retirement mean sale of asset) Select asset button Double click on asset retirement

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PROJECT BIL group (to go for ERP) Packages available Cost / Feature/Time ERP Packages SAP Oracle Financials JD Edwards People soft Decided to go for SAP Consulting firms Cost/Support /Experience 1) 2) 3) 4) 5) WIPRO Infosys Satyam Intell Zensar

Buy SAP package from SAP-India Bangalore with the support of WIPRO Hyderabad vendors. Implement all the modules at all locations (BIG Bang project) or in a phased manner BIL A) Project Manager B) Accounts Manager C)Cost Accountant D) Purchase Manager E) Sales Manager F)IT Staff WIPRO A) Project Manager B) FI Consultant C)Co Consultant D)MM Consultant E)SD Consultant F) BASIS Consultant G) ABAP Programmers

Kick of Date means Start date Form a staring committee BIL Senior people WIPRO Senior people

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Project Mangers BIL and WIPRO BIL core team members As is process existing process and requirements from SAP WIPRO- Study the process and prepare to be process GAP reports Write to SAP the requirement /through programmer/work around /user exits. WIPRO-Customization based clients requirement . BIL core team Testing WIPRO Customization document Before going live Training to the BIL company users will be given Fix ago live date: Customization will be transported from development client to production client. Up load masters in production client Upload balances in production client Give the number ranges in production client. On go live date :Enter transactions in production client. Support: For the issues raised by BIL end users. Rollouts : Implementing SAP in different locations afterwards ASAP Methodology (ASAP Accelerated SAP) Project Preparation Business blue print Realization Final preparation Go and live and support

1. 2. 3. 4. 5.

OSS mean Online Support Service Land Scape 1. Development Quality testing Production Send box All scenarios configuration selected scenario Testing 2. Development Production

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R/ 3 Structure Presentation application data base

SAP Package data stored in data base server

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