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Filling in the gaps – FI/CO account posting during production processes in SAP

I’m not sure if anyone on our first SAP implementations truly understood the costing flow. It is one gift to understand SAP technically, and quite another to understand it as an accounting process. I’m sure you’ve had similar experiences, especially in Product Costing and Cost Object Controlling. As a Senior Education Consultant at SAP, my first goal was to educate myself! Once I began working in the classroom with students, I found they were as confused as I had once been. As an SAP educator, I’ve made it my mission to simplify explanations of these intimidating topics.

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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:


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 Accounting powered by SAP HANA – Moving controlling and finance closer together - Part III

New users have traditionally struggled to understand the way SAP separates Financial Accounting and Management Accounting where most legacy systems see the two as one. While it’s easy enough to understand how a payroll account flows from the profit and loss statement into cost center accounting because the account information stays the same, the situation becomes more challenging as a revenue account flows into profitability analysis and is transformed into a value field, or a cost of goods sold account becomes multiple value fields depending on the cost components involved. In its latest product release, SAP is bringing the two worlds closer together.

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SAP Accounting powered by SAP HANA – Moving controlling and finance closer together - Part II

New users have traditionally struggled to understand the way SAP separates Financial Accounting and Management Accounting where most legacy systems see the two as one. While it’s easy enough to understand how a payroll account flows from the profit and loss statement into cost center accounting because the account information stays the same, the situation becomes more challenging as a revenue account flows into profitability analysis and is transformed into a value field, or a cost of goods sold account becomes multiple value fields depending on the cost components involved. In its latest product release, SAP is bringing the two worlds closer together.

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BPC 10 on SAP HANA: How Speed Unlocks Innovation at CareFusion Video Blog

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At the Controlling 2014 conference keynote address, Michael DeLeo, Director of Cost Accounting for CareFusion, presented a keynote address on BPC 10 on SAP HANA: How Speed Unlocks Innovation at CareFusion. Michael addressed the following topics:

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Dive into SAP FI/CO with popular speaker Paul Ovigele at Controlling 2015


Paul Ovigele Controlling 2015Popular SAP Controlling speaker Paul Ovigele will present several sessions at Controlling 2015. Based on feedback from Controlling 2014, Paul has developed sessions on the topics attendees want to learn more about. Paul will present sessions on:

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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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Controlling 2014 Speaker Profile: Joe Cravero

This week we are profiling Controlling 2014 speaker Joe Cravero, Project Manager on the SAP Financial and Controlling’s Enterprise CO (Controlling) support team at Deere & Company.

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SAP HANA and SAP Controlling – New Opportunities and New Challenges Webinar Now Available for Download

On July 11, 2013 Janet Salmon, Chief Product Owner for Management Accounting at SAP AG, delivered a webinar to the SAP Controlling Community on SAP HANA and SAP Controlling – New Opportunities and New Challenges.”

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Most Common SAP Controlling Pitfall: Beyond Cost Center Accounting – there’s more to SAP CO than meets the eye!

Martin MunzelOur blog series on the most common SAP Controlling pitfalls and how to avoid them continues this week. SAP Controlling 2013 speaker Martin Munzel discusses the most common pitfall is from his perspective.

A common error I have found in companies using SAP CO is that they were trying to make some of the submodules do things they are not designed for.

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Guest — Michel
What about cross-department costs, such as buying company cars or office supplies, should they be accounted for on a separate cost... Read More
Wednesday, 23 January 2019 17:29
Guest — sam
Much refreshing such an incredible sum for this information. I have to disclose to you I concede to a couple of the centers you ma... Read More
Sunday, 20 October 2019 11:05
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Most Common SAP Controlling Pitfall: Evaluating Design Alternatives

This week we are starting a new blog series on the most common SAP Controlling pitfalls and how to avoid them. SAP Controlling 2013 speaker Tanya Duncan is up first.

In my opinion, the most common Controlling pitfall is choosing design alternatives without understanding the ramifications. Controlling is an interesting and, in my opinion, more fun module compared to Finance and other SAP modules. It is more flexible in how you achieve requirements, but it also requires attention to building a robust, sustainable design.  

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Controlling 2013 Speaker Profile: Andrea Middleton, Director of Controlling and Planning at ABB, Inc.


This week we are profiling Controlling 2013 speaker Andrea Middleton, Director of Controlling and Planning at ABB, Inc. 

How did you get your start with SAP and SAP Controlling? 

I started working with SAP in 1992 when I joined ABB.  I joined one month after go live. Needless to say, things were quite up in the air with the knowledgebase on how to not only use SAP, but to report out of it. 

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Controlling 2013 Speaker Profile: Chris Karch, Stream Lead for SAP FI/CO at Rockwell Automation


This week we are profiling Chris Karch, Stream Lead for SAP FI/CO at Rockwell Automation.  Learn more about Chris’s involvement with implementing SAP Controlling and Rockwell Automation and how he hopes to influence change in SAP Product Costing. 

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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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Thank you for your post. This is excellent information. It is amazing and wonderful to visit your site. SAP Consulting Services in... Read More
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Guest — logistic-solutions
Thank you for your post. This is excellent information. It is amazing and wonderful to visit your site. SAP Consulting Services in... Read More
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Guest — logistic-solutions
Thank you for your post. This is excellent information. It is amazing and wonderful to visit your site. SAP reseller sap business... Read More
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