Explanation of FI Line Item Texts created by Material Ledger

By Paul Ovigele

If you use Material Ledger’s Actual Costing, then you would know that the Post Closing Step creates accounting documents depending on how the variances for the Material have been distributed. For example, a material with a price (or exchange rate) difference of $100 could be sold, scrapped, used in a production order that is complete, used in a production order that is not complete, transferred to another plant, or left in inventory. And this only refers to the differences that are created on the material itself (single-level), and not the differences that are transferred from other materials (multilevel) which have their own slew of Material Ledger postings.

Because of this, it is easy to be overwhelmed by the volume of postings that are created by the Material Ledger’s closing entry and what they mean. Some companies choose to label the General ledger accounts appropriately to indicate what the posting is for, but if you do not understand the posting, it is easy to incorrectly label the General Ledger account. Also, you may not need a separate general ledger account for each scenario as that may lead to more General Ledger accounts than you need, and may create even more confusion.

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Five Expert Tips and Tricks for SAP CO and FI

By Paul Ovigele

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Reconciling SAP CO-PA to the General Ledger

By Paul Ovigele

Reconcile SAP CO-PA with General Ledger

By Paul Ovigele

The original purpose of Profitability Analysis (CO-PA) is to enable businesses to produce market segment profitability reports based on sales data. It is particularly useful for  Finance and Sales users as it allows you to perform profitability analysis according to several dimensions (customer, product, country, salesperson etc.) and its real-time functionality helps with quick and effective decision making.

However, one pitfall of the costing-based CO-PA module is the inability to automatically reconcile CO-PA with the General Ledger.

Updating Quantity Fields in CO-PA

By Paul Ovigele

Table of Contents

1. Assigning Quantity fields from Sales Documents

2. Assigning Quantity Fields from Manufacturing Orders

3. Assigning Quantity Fields from FI Documents 

When you are using SAP Controlling Profitability Analysis (CO-PA) you know that mapping objects to value fields is the key to ensuring that the reports are complete and accurate. The normal scenario is to assign amount fields such as sales conditions, general ledger accounts and production variances.

However, it is also important to map quantity fields such as sales and production quantities to value fields (which are set up with a “quantity” attribute in transaction KEA6). Most sales and contribution margin reports contain these quantity values (for example Net Weight of products sold) in order provide the appropriate context for the reported revenue and cost of sales figures.

There are three main areas where you can make assignments to quantity fields in CO-PA.

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Introduction to SAP Material Ledger

By Paul Ovigele

Table of Contents

1. Introduction
2. Standard Costing
3. Moving Average Costing
4. Material Ledger
5. Glossary

Introduction

SAP Material Ledger allows you to run Actual Costing with the benefits, and without the disadvantages, of the two traditional methods of inventory valuation:

• Standard Costing
  
  
• Moving Average Costing
  
  

Before we explore SAP Material Ledger and Actual Costing, let's analyze the two traditional approaches.