SAP S/4HANA End-to-End Lab

This post lists the tasks handled at month-end close, in order of deadline. Month-end close tasks Task Explanation Deadline SAP module Representative Standard T-Code Goods receipt close: equipment/construction purchases (equipment, parts and supplies for plant facilities) Record in SAP that equipment, parts and supplies bought for the plant facilities have arrived. Construction work has no goods, so you record a confirmation that the work is done (a service entry sheet). D+0 MM (Materials Management) MIGO (Goods Movement) ML81N (Service Entry Sheet) Goods receipt close: raw and auxiliary materials Record in SAP that the raw materials used to make products, and the auxiliary materials that go in with them, have arrived. Warehouse stock goes up by the quantity received. D+1 MM (Materials Management) MIGO (Goods Movement) Product shipping close Record in SAP that finished products were sent to customers (goods issue). Goods i...

The last part of this series, based on a practical ERP cost management course, covers process costing in a mass-production environment and the month-end cost close procedure. The cost close is not a CO-only task. It is an integrated process that runs after the production, purchasing, sales and finance actuals have all been closed. 1. Process costing splits cost between finished units and work in process Job costing suits cost tracking per production order. In mass production, only part of the input is completed and the rest remains in process, so the input cost has to be allocated between finished units and WIP. Method Suited to Cost is split between Job costing Cost tracking per production order Individual orders Process costing Mass production Finished units and work in process 2. Beginning WIP and degree of completion When beginning WIP exists, the weighted average method or the FIFO method can be applied. Equivalent units, which reflect the...

Part 3 of the SAP CO overview covers Product Cost Controlling. Product cost is not simply the sum of material cost. It also covers what was consumed and in what quantity, which operations were performed, why plan and actual differ, and how that difference is reflected in inventory and cost of goods sold. Note: screens, T-codes and closing procedures vary by SAP version, production method, whether the Material Ledger is active, and company-specific configuration. 1. Cost is classified differently depending on purpose and behavior The same cost carries a different meaning depending on the classification used. No classification is more correct than another; the point is to pick the view that fits the decision at hand. Classification basis Categories Nature of cost Material, labor, expenses Relation to the product Direct cost, indirect cost (overhead) Relation to activity level Variable cost, fixed cost Relation to manufacturing Manufacturin...

On the day we shipped, the billing document said the margin was 36% . Three weeks later, after the close, the same sale carried a margin of 6% . Nobody made a mistake. No posting was reversed. Every document in between was correct. This is the part of SAP that spreadsheets never prepare you for, so it is worth walking through with real numbers. Everything below comes from a small dumpling factory I built from an empty S/4HANA client and drove through one complete business month. 1. The sale looked great A sales order for 20,000 KRW of dumplings, delivered and billed: Step Transaction Effect Sales order VA01 Revenue 20,000 · standard cost of goods 12,800 → expected margin 7,200 (36%) Goods issue VL01N → PGI Cost of goods sold hits the P&L for the first time — at standard Billing VF01 Revenue 20,000, receivable 22,000 (incl. tax) If you stop reading the system here — and a lot of people do, because t...

In the last post on cost center variance calculation (KSS1) I noted that the similarly-named KKS1 is a different animal. This is that post: production order variance calculation. I hit two errors on the way in, so we start with their causes and fixes, then verify — by comparing the database before and after — exactly what gets stored where. Environment: controlling area JNC2, plant JNC2, period 2026/008, KRW, three production orders. ※ Screens, menus, and settings may differ depending on your SAP release and system configuration. Two errors before it would even run KV031 ("no target cost version") — version 0 itself existed. What was empty was the variance variant for orders (AWVAO) in OKV6: only the cost-center one (AWVAS) was maintained, which is why KSS1 worked fine while KKS1 refused. Same OKV6 screen, different column. KV011 is an order status problem. Order 1004916 got its goods receipt and final delivery on August 2 — run KKS1 for period 007 and, as of that pe...

This post covers the last stretch of cost center month-end: variance calculation. The four steps are KSS2 (actual cost splitting) → KSS3 (target cost basis display) → KSII (actual price calculation) → KSS1 (variance calculation) — and for each step I compared the database before and after execution to see exactly which tables it touches. Environment: controlling area JNC2, cost center JNC29010, period 2026/007, KRW, S/4HANA 2021. ※ Screens, menus, and settings may differ depending on your SAP release and system configuration. One of the four steps is different in kind KSS3 has no Test Run checkbox and saves nothing. It computes target costs on the fly from the splitting result and actual activity quantities every time you view it. The other three steps each update different tables: T-code Step Test Run Updates KSS2 Actual cost splitting yes COSS KSS3 Target cost display n/a nothing (computed on view) KSII Actual price calculation yes COKL, COSL + CO documents (the on...