SAP S/4HANA End-to-End Lab

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 2 of this series, based on a practical ERP cost management course, covers the master data that forms the backbone of cost calculation, job costing, manufacturing overhead allocation and joint costs. Before choosing a costing method, the first question to settle is: where is cost collected, and on what basis is it allocated to which product? 1. Cost master data determines the calculation result Master data object Role Examples from the course Cost center Responsibility unit that plans and collects cost — Cost element Classifies the nature of expenses and revenues — Activity type Expresses an activity quantity Labor hours, machine hours Internal order Tracks cost of a specific purpose Events, campaigns 2. Cost classification criteria Cost is classified by purpose. The direct/indirect and variable/fixed distinctions in particular have a large effect on allocation and on decision making. Criterion Catego...

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...

If you run a standard cost estimate every month, sooner or later someone asks a question no single SAP screen answers well: which materials were only marked, which were actually released, and when? Opening CK11N or CK24 material by material is not an answer when there are hundreds of them. Three tables carry the whole story — KEKO , MBEW and MBEWH . Below are the queries I use to read status, monthly trend and missed releases straight out of them, in ABAP SQL and in native HANA SQL for the DB02 SQL editor. The three states of a cost estimate Estimating, marking and releasing are three separate acts, and each leaves its trace in a different field. Getting that mapping right is most of the job: Status How it is recognised What it means ESTIMATED_ONLY FREIG ≠ 'X', VORMDAT = 00000000 The estimate was run (CK11N/CK40N) and nothing else happened. The material master still carries the old price. MARKED_NOT_RELEASED FREIG ≠ 'X', VORMDAT > 00000000 Marked (CK24 marking...