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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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Add Cost Component Groups to Cost Components

JJ newCost components group similar cost types together by cost element. Typically materials, labor, and overhead.

Cost components are not available as columns in standard cost estimate list reports. However, they are useful when analyzing production or purchasing performance across a range of products. Add cost components to standard cost estimate list reports and costed multilevel BOM reports by creating cost component groups and assigning them to cost components.

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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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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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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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Post Purchase Price Variance (PPV) to Purchasing

JJYou typically retrieve the standard price for purchased materials from purchasing info records during a costing run. Purchasing info records store vendor quotations per material as an estimate of your plan purchase price.

You post  purchase price variance (PPV) during goods and invoice receipts if the actual purchase price is different from standard. You use it to measure Purchasing performance and have Purchasing explain an increase in unfavorable PPV postings.

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Optimize Financial Performance Leveraging S/4 HANA EPM/BPC

JohannesBusinesses leverage Enterprise Performance Management (EPM) to improve profitability by bringing significant improvement in financial and operational insight. With EPM improved operability and reduction of the cost of ownership with direct integration into SAP, S/4HANA provides integrated analytics solutions.

We use expertise, experiences, best practices, and methodologies using pre-packaged content including starter kits and pre-configured applications.

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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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Fiscal Year Variants in SAP S/4HANA Asset Accounting

Many companies operate in multiple regions and countries and need to report on their fixed assets based on various legal and valuation frameworks.

Parallel Valuation in Asset Accounting

SAP S/4HANA provides the tools and processes to fulfill these parallel valuation requirements. Some of these requirements can be technically challenging to meet, such as when you need to use different fiscal year variants (FY variants) in the different valuation frameworks.

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Cost Component Views in SAP Product Costing

TomKingI'm writing a book on SAP Product Cost Planning and in the process getting a better understanding of the importance of cost component views in product cost estimates.

The cost component split and cost component views provide valuable insight into a cost estimate. Setting up cost components correctly in a cost component structure leads you to a multi-faceted understanding of a product cost within a single cost estimate. At the beginning of the implementation our priority was to develop standard costs and we ignored additional information we could have obtained with a better understanding of cost component views.

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