Actual Costing with the Material Ledger in SAP ERP

Keep your internal costs straight! Get the complete picture on valuation and costing with the Material Ledger in this book, from master data setup and configuration to revaluations. Using a practical approach, helpful steps, and detailed case studies, you'll learn how to set up and configure the Material Ledger for several scenarios, use its different functions for calculations, reports, and valuation scenarios, and much more. Highlights: Product cost planning Actual costing runs Total cost absorption Purchase price variance Manufacturing and overhear variances Material price determination COGS/WIP revaluation at actual cost IFRS SAP HANA Integration with Financial Accounting

Understand the benefits of using the Material Ledger on SAP HANA, and learn how to replicate data to it

Auteur
Vanda Reis is a Product Costing and Material Ledger expert who has worked as a consultant and advisor for several of the largest companies worldwide. She has more than 12 years experience with product costing processes including actual costing (material ledger). Vanda has worked for several major SAP accounts as a consultant and advisor for material ledger subject matter. She has written material ledger articles for the Financial Experts magazine, and is a regular contributor to the SAP community.

Résumé
Don't let your internal costs mirror ever-changing market fluctuations. Keep things straight and get the complete picture on material valuation and costing with the Material Ledger in this book, from master data setup and configuration, to revaluations.

Contenu

Acknowledgments ... 17

1 ... Introduction ... 19

1.1 ... Structure of This Book ... 20

1.2 ... Looking Ahead ... 22

PART I ... Introduction to the Material Ledger ... 25

2 ... Material Ledger Basics ... 27

2.1 ... Price Control and Inventory Valuation ... 28

2.2 ... Material Ledger Concepts and Usage ... 44

2.3 ... Material Price Determination Control ... 49

2.4 ... Material Price Analysis, Categories, and Process Categories ... 50

2.5 ... Procurement/Consumption Alternatives and the Controlling Level ... 55

2.6 ... Summary ... 58

3 ... Product Cost Planning ... 59

3.1 ... Business Case ... 60

3.2 ... Master Data ... 61

3.3 ... Activity Types and Planning Prices ... 70

3.4 ... Selected Configuration for Product Cost Planning ... 73

3.5 ... Standard Costing ... 76

3.6 ... Summary ... 88

4 ... Material Ledger Configuration and Startup ... 89

4.1 ... Multiple Currencies Configuration ... 90

4.2 ... Actual Costing Configuration ... 98

4.3 ... Material Ledger Startup ... 103

4.4 ... Reconciliation of the Material Ledger Currencies ... 107

4.5 ... Price Determination Control ... 109

4.6 ... Material Master Data with Material Ledger ... 111

4.7 ... Summary ... 112

5 ... Account Determination Configuration for the Material Ledger ... 113

5.1 ... Account Determination: Basic Configuration ... 113

5.2 ... Account Determination: WIP Revaluation ... 128

5.3 ... Exchange Rate Differences ... 131

5.4 ... Summary ... 133

PART II ... Basic Functions of the Material Ledger ... 135

6 ... Purchasing Processes and Variances ... 137

6.1 ... External Procurement and Purchase Price Variances ... 138

6.2 ... External Procurement and Exchange Rate Variances ... 151

6.3 ... Changing the Controlling Level ... 160

6.4 ... Summary ... 164

7 ... Manufacturing and Overhead Variances ... 165

7.1 ... Manufacturing Order and Preliminary Costing ... 166

7.2 ... Simultaneous Costing ... 172

7.3 ... Plant-to-Plant Material Transfers ... 187

7.4 ... Period-End Processing ... 189

7.5 ... Summary ... 200

8 ... Periodic Actual Costing ... 201

8.1 ... Creating a Costing Cockpit Run ... 202

8.2 ... Material Selection ... 205

8.3 ... Determine Sequence ... 207

8.4 ... Single-Level Price Determination ... 209

8.5 ... Multilevel Price Determination ... 223

8.6 ... Post Closing ... 243

8.7 ... Mark Material Prices ... 257

8.8 ... Summary ... 261

9 ... Actual Costing Revaluations ... 263

9.1 ... Revaluation of Consumption ... 264

9.2 ... Revaluation of Work in Process ... 276

9.3 ... Summary ... 307

10 ... Actual Costs and Value Flow Reports ... 309

10.1 ... Actual Cost Component Split ... 310

10.2 ... Valuated Actual Quantity Structure ... 312

10.3 ... Actual Bill of Materials ... 316

10.4 ... Value Flow Monitor ... 318

10.5 ... Activity Types Value Flow Display ... 329

10.6 ... Summary ... 331

11 ... Material Ledger: More Functionalities ... 333

11.1 ... Transferring Actual Costs to CO-PA ... 334

11.2 ... Debiting or Crediting Materials ... 345

11.3 ... Changing Actual Cost Component Split Values ... 351

11.4 ... Distribution of Usage Variances (DUV) ... 354

11.5 ... Alternative Valuation Run (AVR) ... 376

11.6 ... Summary ... 391

PART III ... Advanced Topics in the Material Ledger ... 393

12 ... Transfer Prices and Multiple Valuation Approaches ... 395

12.1 ... Transfer Price Concepts ... 396

12.2 ... Multiple Valuation Approach Implementation Scenarios ... 397

12.3 ... Multiple Valuations Configuration ... 399

12.4 ... Profit Center Implementation Configuration ... 409

12.5 ... Automatic Account Determination Configuration ... 411

12.6 ... Defining the Transfer Prices Pricing Procedure ... 416

12.7 ... Optional Configuration ... 424

12.8 ... Multiple Valuations Startup Procedure ... 434

12.9 ... Multiple Valuations Process Examples ... 436

12.10 ... Summary ... 440

13 ... Multiple Valuation of Cost of Goods Manufactured and IFRS ... 443

13.1 ... Introduction to IFRS ... 444

13.2 ... Multiple Valuation of Inventory Concept ... 445

13.3 ... Multiple Valuation of COGM Configuration ... 447

13.4 ... Periodic Process for Multiple Valuation of COGM ... 460

13.5 ... Summary ... 470

14 ... Actual Costing Cross-Company Code ... 471

14.1 ... Stock in Transit and Actual Costing Function Prerequisites ... 472

14.2 ... Procurement Process ... 477

14.3 ... Stocks in Transit and Purchase Order (GRP) ... 478

14.4 ... Intercompany Profits in the Actual Cost Component Split ... 481

14.5 ... Cross-Company Code Stock Transfer Processes in Multilevel Actual Costing ... 483

14.6 ... Summary ... 485

15 ... Material Ledger on SAP HANA ... 487

15.1 ... Why Use SAP HANA for Material Ledger? ... 488

15.2 ... Material Ledger Accelerator ... 489

15.3 ... Data Replication ... 490

15.4 ... Application Settings for SAP ERP Accelerators: Transaction HDBC ... 499

15.5 ... Show Database Table Content via Transaction SE16H ... 504

15.6 ... Closing Procedures ... 505

15.7 ... Reporting ... 506

15.8 ... Summary ... 518

... Appendices ... 521

A ... Examples in T Accounts ... 523

A.1 ... Period 01 ... 523

A.2 ... Period 02 ... 532

B ... Bibliography ... 535

C ... The Author ... 537

... Index ... 539