ERPCorp SAP FICO Blog
- Category: Blog
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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 may scrap cheaper items and rework costly items not meeting quality standards.
- Category: Blog
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By John Jordan
SAP Subcontracting involves sending components to a vendor to manufacture an assembly for you. The vendor returns the completed assembly, and during goods receipt GR, the components are issued from subcontract inventory. Subcontracting is a purchasing process with the manufacturing occurring at the vendor location.
- Category: Blog
- Hits: 38925
by John Jordan
There are three methods to distribute overhead costs to the cost of goods sold for the standard price as listed below:
1. Activity Rate:
You can either increase the planned activity price to include overhead, or create separate overhead activity types. Manufacturing orders are debited during activity confirmation, and production cost centers are credited.
- Category: Blog
- Hits: 44267
By John Jordan
SAP Material Ledger has two main functions:
- Carry inventory in multiple currencies and valuations
- Actual Costing
In this blog, we'll 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 incurred during the period. The actual price is called the Periodic Unit Price PUP and can be used for the following two functions at period-end:
- Category: Blog
- Hits: 39344
By John Jordan
Table of Contents
- Introduction
- No Period-End Processing
- Single-level price determination
- Multiple-level price determination
- Glossary
Introduction
The three period-end options when you activate SAP Material Ledger are:
- No Actual Costing - no period-end processing
- Single-level price determination
- Multilevel price determination
Here's more details of each option:
- Category: Blog
- Hits: 69802
By John Jordan
In SAP S/4HANA, materials are typically valuated using either Standard Price (S) or Moving Average Price (V). The appropriate price control depends on the type of material and how you want inventory price differences to be handled.
Read more: SAP Standard Price vs. Moving Average Price in S/4HANA
- Category: Blog
- Hits: 32589
By John Jordan
Introduction
Purchase Price Variance (PPV) in SAP S/4HANA occurs when the actual procurement cost of a material differs from the price used to value the material. For materials using Standard Price (S), differences between the standard price and purchase order, goods receipt, or invoice receipt values can be posted to price difference accounts.
Analyzing PPV helps Purchasing identify the causes of procurement cost variances, including changes in supplier prices, purchase order prices, freight costs, exchange rates, and invoice prices. Assigning PPV to Purchasing also provides greater visibility into the materials and transactions driving those differences.
Read more: SAP Purchase Price Variance (PPV): Posting and Analysis in S/4HANA
- Category: Blog
- Hits: 41369
By Stoil Jotev
Table of Contents
- Introduction
- Parallel Valuation in Asset Accounting
- Additional Representative Ledger Solution
- Alternative Solutions
- Conclusion
- Continue Reading
- Glossary
Introduction
Many companies operate in multiple regions and countries and must 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, such as when using different fiscal year variants (FY variants) in the various valuation frameworks.
Read more: Fiscal Year Variants in SAP S/4HANA Asset Accounting
- Category: Blog
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BY Ashish Sampat
Several colleagues have asked me questions about integration of MM and FI such as:
- How do postings flow from Materials Management into Financial Accounting?
- How do we find out what occurs behind the scenes?
- How do we identify which movement types point to a specific General Ledger (GL) Account?
- How do you change the posting to a different GL Account?
- How do you create a new movement type and assign it to a specific GL Account?
This blog explains the fundamentals of MM-FI account determination. Let's start with some configuration basics, including OBYC.
- Category: Blog
- Hits: 64468
By John Jordan
How to Create an SAP Internal Order Budget
An internal order budget, or approved funds, is maintained at an overall or annual level.
You activate availability control to issue warning or error messages based on defined tolerances. Let's examine the internal order budget and availability control.