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John Jordan is founder and principal consultant at ERP Corp, which provides expert SAP consulting and training. John regularly speaks at conferences, publishes articles, and is the author of three SAP PRESS bestsellers. 

SAP Controlling Tip 100: Frequently Asked Questions

Tip 100 from 100 Things You Should Know About Controlling with SAP (2nd Edition) by John Jordan:

You can reference SAP Note 552486 for answers to frequently asked questions about Product Cost Controlling (CO-PC). Process orders provide you with extra functionality, such as phases and process instructions for process industries. 

The Online Service System (OSS) contains a database of useful information and advice on fixes for SAP system issues, consulting notes, and frequently asked questions. OSS Note 552486 contains advice on 14 SAP Controlling frequently asked questions. In this tip, we'll discuss how to access OSS Note 552486 adn we'll go over the note's first couple of questions and answers. 

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SAP Controlling Tip: How to create an internal order budget

ExclusiveContentBlog250Tip 14 from 100 Things You Should Know About Controlling with SAP (2nd Edition) by John Jordan:

You can use internal order budgeting to control actual expenditures by activating availability control. 

An internal order budget represents funds approved by management. A budget is maintained at either an overall or annual level. You can activate availability control, which can issue warning or error messages based on defined tolerances. Let's look at how to create an internal order budget and how to activate availability control.


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You can maintain a budget profile with Transaction OKOB or via the following IMG menu path: Controlling • Internal Orders • Budgeting and Availability Control.

Double-click a budget profile to display the the internal order budget profile. Activation type 1 indicates automatic activation of availablity control during budget allocaiton. If the Overall checkbox is selected, availability control checks against the overall budget. If it isn't selected, availaiblity control checks against the annual budget. Availability control works with controlling area currency, unless you select the Object Currency checkbox. You can assign the budget profile to an order type with Transaction KOAB or via the first menu path.

You can maintain availability control tolerances via the following IMG menu path: Controlling • Internal Orders • Budgeting and Availability Control • Define Tolerance Limits for Availibility Control

Left-click then right-click in an action field and selct posible entries to display the avabilty control and tolerance limits screen.

The action field defines the messages and emails the system will send at specific degress of budget overrun. In this example, when the budget is nearly consumed at 95%, a warning is issued with an automatic email to the persons responsible. Specify a budget manager with Transaction OK14, or the system will issue an error message. With a budget overrun at 105%, an error message is issued. 

You can enter an order budget with Transaction KO22 or via the following menu path: Accounting • Controlling • Internal Orders • Budgeting • Original Budget.

Keep reading in Things You Should Know About Controlling with SAP (2nd Edition)Use coupon code CTLSP10 for 10% off on www.sap-press.com.

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SAP Controlling Tip: Understanding Process versus Production Orders

JJordan400ResizedTip 50 from 100 Things You Should Know About Controlling with SAP (2nd Edition) by John Jordan:

Process orders provide you with extra functionality, such as phases and process instructions for process industries. 

If you use production orders, the system transfers a routing and a bill of material (BOM) into the master data of the order header. If you’re manufacturing on the basis of process orders, the system uses the master recipe and associated materials list. The difference occurs because process industries manufacture in phases, converting initial liquid batches into consumable batches, which are then bottled and packaged.

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SAP Controlling Tip 100: Frequently Asked Questions

Tip 100 from 100 Things You Should Know About Controlling with SAP (2nd Edition) by John Jordan:

You can reference SAP Note 552486 for answers to frequently asked questions about Product Cost Controlling (CO-PC). Process orders provide you with extra functionality, such as phases and process instructions for process industries. 

The Online Service System (OSS) contains a database of useful information and advice on fixes for SAP system issues, consulting notes, and frequently asked questions. OSS Note 552486 contains advice on 14 SAP Controlling frequently asked questions. In this tip, we'll discuss how to access OSS Note 552486 adn we'll go over the note's first couple of questions and answers. 

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Introduction to SAP Material Ledger - Excerpt from Things You Should Know About Controlling with SAP (2nd Edition)

Excerpt from 100 Things You Should Know About Controlling with SAP (2nd Edition) by John Jordan:

With the material ledger, you can carry inventory in up to two additional valuations and at actual costs, described as follows:


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Carry material prices in multiple currencies and valuations

Material inventory values are normally carried in only company code currency. The material ledger enables the system to carry inventory values in two additional currencies/valuations. This is achieved by updating all goods movements in the material ledger in up to three currencies or valuations. Currency amounts are translated into foreign currencies at historical exchange rates directly at the time of posting. 

Value inventory at actual costs

Actual costing valuates all goods movements within a period at the standard price (preliminary valuation). All price and exchange rate differences for the material are collected in the material ledger.

At the end of the period, an actual price is calculated for each material based on the actual costs of the period. This actual price is called the periodic unit price and can be used to revaluate the inventory for the period to be closed. You can use this actual price as the standard price for the next period.

Actual costing determines what portion of the variance is to be debited to the next-highest level using material consumption. The actual bill of materials enables variances to be rolled up over multiple production levels all the way to the finished product. You can choose to have cost center variances also taken into account. 

This category of tips describes how multiple valuations and actual costing work, and the material ledger period-end closing process. It also describes the implementation steps needed during production startup. The actual cost component split and deactivating the material ledger are also explained. 

Keep reading in Things You Should Know About Controlling with SAP (2nd Edition)Use coupon code CTLSP10 for 10% off on www.sap-press.com.

 

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SAP Controlling 2012 Conference Updates

There have been a number of conference agenda content and networking updates. Thank you for all of your excellent suggestions. Here are a few updates that I think you will be interested in.

The Future of SAP Controlling and Financials functionality: An exciting and innovative pre-conference session that will give conference attendees the opportunity to:

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Welcome to the SAP Controlling Community Blog

Over the past several years I've seen a growing need for an SAP Controlling community, where management accounting professionals have a venue to share knowledge, best practices, insight, perspectives, and opportunities.

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