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RISE with SAP Benefits July 2022

 

RISE with SAP Benefits

Anurag Rise small

 Anurag Barua will present RISE with SAP at SAP Controlling 2022 Conference October 10-11, 2022.

 

When did SAP launch RISE with SAP?
Launched in January 2021, RISE with SAP helps your company migrate to SAP S/4HANA in the cloud.

 

What are the advantages of RISE with SAP?

RISE with SAP accelerates your business transformation into an Intelligent Enterprise.

 

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SAP Fiori Apps for Variance Analysis in Manufacturing

 

SAP Fiori Apps for Variance Analysis in Manufacturing by Tom King

TomKing

 Tom King will present on SAP Variance Analysis in S/4HANA at SAP Controlling 2022 Conference October 10-11, 2022.
 
 
Planned values on a production order are adjusted to the operating rate to calculate variances between target and actual costs.

 

With the introduction of SAP S/4HANA there have been many improvements in SAP Controlling including:

 

 - Cost elements are now included in General Ledger (GL) accounts with a cost element category.

 - SAP Material Ledger is mandatory. SAP Actual Costing is not mandatory.

 - SAP Margin Analysis based on account-based CO-PA now has advantages over costing-based CO-PA. All SAP development on profitability Analysis now takes place in SAP Margin Analysis.

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SAP FICO Controlling Conference March 2022 Highlights

 

SAP FICO Controlling Conference 2022 Highlights

It’s been a few months since our last SAP FICO Controlling conference so here's a wrap up of the SAP topics we covered. We had a wonderful time at the beautiful SAP HanaHaus overlooking Newport Beach marina.
front of ERP Controlling Conference
Some of the highlights of the SAP topics covered below were expertly delivered by Anurag Barua from SAP who talks about RISE with SAP and benefits to your company. Marjorie Wright took us through the benefits of SAP S/4HANA Margin Analysis. Tom King talked about transitioning Material Ledger to SAP S/4HANA.

Dirk Lonser & Maitrang Nguyen from UST took us through a SAP S/4HANA Finance to Public Cloud case study. Chris Ritterhern & Steve Christos from SAP discuss planning with SAC & SAP Cloud. Finally, Stephen Thomaidis from SAP shows us how SAP transitioned from a software to a cloud company.

Topics and videos from March 2022 are available for replay with ERPcorp Learning Membership.

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Reasons to Attend SAP Controlling 2022 Conference

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Display SAP MM-FI Automatic Account Assignment

 

Display SAP MM-FI Automatic Account Assignment

JJ new

You use configuration Transaction OBYC to assign SAP General Ledger (GL) accounts in Financial Accounting (FI) to movement types in Materials Management (MM), also known as SAP MM-FI Automatic Account Determination or Assignment.

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Hybrid Planning with BPC S/4HANA and SAP Analytics Cloud

Businesses have leveraged Business Planning and Consolidations (BPC) for a year now and are now challenged by working with several new products at the same time, including SAP Business Warehouse (SAP BW) 7.4/7.5, the Enterprise Performance Management (EPM) add-in, version 10.0 SP30 (frontend for standard SAP BPC), and SAP Analysis for Microsoft Office (frontend for embedded SAP BPC) and they need to decide if they need to go to BPC Embedded, Cloud or BPC S/4 HANA Standard.

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How to make trading partner a required entry (Part I)

 

How to make trading partner a required entry (Part I)

Trading Partner: Definition

Trading Partner is a term used in trade and commerce and is generally defined as:

One of the two or more participants in an ongoing business relationship.

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SAP Assembly Scrap Basics

 

SAP Assembly Scrap Basics

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SAP assembly scrap allows you to plan for faulty or damaged assemblies.

Since no production process is perfect,  some scrap is always produced. You can either scrap or rework assemblies and components that do not meet quality standards. Depending on the problem, you may scrap cheaper items and rework costly items.

When setting up SAP Scrap we recommend you work with our ERPCorp experts: 

Learn about ERPCorp Coaching & Consulting

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SAP Costing Sheets Allocate Overhead

JJ newThere are 3 methods to distribute overhead costs to the cost of goods sold for the standard price. In increasing level of flexibility and complexity:

Activity Rate: You can either increase the planned activity price to include overhead or create separate overhead activity types. Manufacturing orders are debited and production cost centers credited during activity confirmation.

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SAP Subcontracting

JJ newSAP Subcontracting involves sending components to a vendor where an assembly is manufactured. The vendor returns the completed assembly, and during goods receipt, the components are issued from subcontract inventory. Subcontracting is a purchasing-controlled process.

Special procurement type in the MRP 2 view determines when you manufacture a material with the subcontracting process.

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Actual Costing with SAP Material Ledger

JJ new  SAP Material Ledger has two basic functions:

  - Carry inventory in multiple currencies and valuations

 - Actual Costing

 In this blog we discuss Actual Costing in detail:

Actual costing generates a material ledger document for all goods movements at standard price (preliminary valuation). At period-end, the actual price is calculated for each material based on the actual costs of the period. The actual price is called the Periodic Unit Price (PUP) and can be used for the following at period-end:

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Attributed Profitability Segment - SAP S/4HANA

AnandCharacteristics from a profitability segment can be read and posted to income statement line items based on the best guess principle. This feature was introduced in account-based CO-PA in S/4HANA 1610. You can use drill-down reporting on posted data. Without attributed profitability segments, you must wait until month-end activities such as settlement, allocation and top-down distribution. With this new CO-PA feature, you can achieve real-time profitability reporting during the month.  

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GR/IR (Goods Receipt / Invoice Receipt) Processing

GR/IRoss Christoph 2017R is the SAP process to perform the three-way matchpurchase order, material receipt, and vendor invoice.  You use a clearing account to record the offset of the goods receipt (GR) and invoice receipt (IR) postings.  Once fully processed, the postings in the clearing account balance. 

Learn more about GR/IR and other SAP FICO topics. Please visit our new SAP FICO Learning Center please click here.

Clearing is performed at the purchase order (PO) line item level based on quantity entered. Price variance and exchange rate variance are calculated.  You can write off small differences using transaction MR11.

Purchase Price Variance
This discussion assumes you are using standard price control (S)  for purchased materials. The quantity and amount on the GR and IR postings are important. You must have posted GR to record purchase price variance (PPV). There is no PPV posting for just IR. There can be additional variance postings on IR after GR is posted for differences between PO price and actual price paid.

When posting GR, the price variance is based on the PO price, unless IR has already been posted, then it is based on actual price paid. If IR has already been posted, the GR will be based on the IR up to the quantity of the IR, after that is will use the PO price again.

After all postings to a PO line item, the net PPV posted will be the difference between the actual price paid and the standard cost of the material.

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SAP Standard vs Moving Average Price

JJ newYou choose standard or moving average price for inventory valuation. Let’s discuss each method in detail. You change the price control indicator with transaction MM02 or by following menu path: Logistics • Material Master • Material • Change

Navigate to the Costing 2 view to display the screen shown in Figure 1.

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SAP Actual Cost Component Split

JJ new

SAP Actual Costing with SAP Material Ledger allows variances to flow to semi-finished and finished products based on the consumption of lower-level components. While multi-level price determination allows you to see the actual price of all materials at the end of the period, you cannot display price differences rolled up separately from the lowest to highest-level materials. You only see price differences assigned from the next lowest level.

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SAP Cost Estimates and Procurement Type

JJ newSAP cost estimates determine how the material is sourced by the procurement type. Material requirements planning (MRP) guarantees material availability by monitoring stocks and requirements and by generating planned orders for procurement and production. A cost estimate needs data on how the material is procured as the first step in determining material cost. Let’s see how to display procurement types and then look at how cost estimates utilize this information.

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SAP Material Ledger Period-End Closing

JJ newYour three period-end options when activating SAP Material Ledger are:

 - No period-end processing

 - Single-level price determination

 - Multilevel price determination

Let’s discuss each in detail.

 

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Material Price Determination in SAP Material Ledger

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Material price determination determines how the valuation of a material occurs after each business transaction for a material. If SAP Material Ledger is active, this field should be set in the material master with an appropriate combination of price control and material price determination. When SAP Material Ledger is active for a valuation area, additional fields become available in the Accounting 1 view. 

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Book Excerpt: Introduction to Configuration from The Essential SAP Career Guide


b2ap3_thumbnail_IMG_3683.jpgOne of the major tasks for functional SAP professionals is configuration. You configure SAP to perform properly based on business requirements during the realization phase. On your first SAP project, it can be overwhelming to know where to start when configuring a module.

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Fundamentals of MM-FI Account Determination

AshishSeveral colleagues have asked me questions about the integration between Materials Management (MM) and Financial Accounting (FI) modules:

- How do postings flow from MM into FI?

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