Table of Contents

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Acknowledgments
17
1 Introduction
19
1.1 Structure of This Book
20
1.1.1 Part I: Introduction to the Material Ledger
20
1.1.2 Part II: Basic Functions of the Material Ledger
21
1.1.3 Part III: Advanced Topics in the Material Ledger
22
1.1.4 Appendices
22
1.2 Looking Ahead
22
PART I Introduction to the Material Ledger
25
2 Material Ledger Basics
27
2.1 Price Control and Inventory Valuation
28
2.1.1 Price Control as Standard Price
29
2.1.2 Price Control as Moving Average Price (MAP)
33
2.1.3 Moving Average Price versus Standard Price
41
2.2 Material Ledger Concepts and Usage
44
2.2.1 Multiple Currencies
45
2.2.2 Multiple Valuations
46
2.2.3 Actual Costing Calculation
48
2.3 Material Price Determination Control
49
2.4 Material Price Analysis, Categories, and Process Categories
50
2.4.1 Categories
52
2.4.2 Process Categories
54
2.5 Procurement/Consumption Alternatives and the Controlling Level
55
2.5.1 Procurement and Consumption Alternatives
55
2.5.2 Controlling Level
56
2.6 Summary
58
3 Product Cost Planning
59
3.1 Business Case
60
3.2 Master Data
61
3.2.1 Cost Center
61
3.2.2 Activity Types
63
3.2.3 Materials and Bill of Materials
66
3.2.4 Routings
68
3.2.5 Work Center
69
3.3 Activity Types and Planning Prices
70
3.4 Selected Configuration for Product Cost Planning
73
3.4.1 Cost Component Split
73
3.4.2 Activate Cost Component Split in Controlling Area Currency
75
3.5 Standard Costing
76
3.6 Summary
88
4 Material Ledger Configuration and Startup
89
4.1 Multiple Currencies Configuration
90
4.1.1 Activate Valuation Areas for the Material Ledger
90
4.1.2 Assign Currency Types to Material Ledger Type
92
4.1.3 Assign Material Ledger Types to Valuation Area
98
4.2 Actual Costing Configuration
98
4.2.1 Activate Actual Costing
99
4.2.2 Activate Actual Cost Component Split
101
4.3 Material Ledger Startup
103
4.3.1 Considerations Before You Run the Startup Program
104
4.3.2 Running the Material Ledger Startup Program
105
4.4 Reconciliation of the Material Ledger Currencies
107
4.5 Price Determination Control
109
4.6 Material Master Data with Material Ledger
111
4.7 Summary
112
5 Account Determination Configuration for the Material Ledger
113
5.1 Account Determination: Basic Configuration
113
5.1.1 Price Differences (PRD)
116
5.1.2 Exchange Rate Differences for Open Items (KDM)
118
5.1.3 Expenditure/Income from Transfer Posting (AUM)
119
5.1.4 Revenue/Expense from Revaluation (UMB)
120
5.1.5 Price Differences for Material Ledger (PRY)
121
5.1.6 Price Differences from Lower Levels (PRV)
122
5.1.7 Exchange Rate Differences from Lower Level (KDV)
123
5.1.8 Stock Posting (BSX)
124
5.1.9 Accruals and Deferrals Accounts in the Material Ledger (LKW)
125
5.1.10 Cost Center Crediting from Activities (GBB-AUI)
126
5.1.11 Revaluation of Other Consumption (COC)
127
5.2 Account Determination: WIP Revaluation
128
5.2.1 WIP from Price Differences: Material (WPM)
128
5.2.2 WIP from Price Differences: Activity Type (WPA)
129
5.2.3 Price Differences from WIP Written Off from Materials (PRM)
130
5.2.4 Price Differences from WIP Written Off from Activity Types (PRA)
130
5.2.5 Review
131
5.3 Exchange Rate Differences
131
5.4 Summary
133
PART II Basic Functions of the Material Ledger
135
6 Purchasing Processes and Variances
137
6.1 External Procurement and Purchase Price Variances
138
6.1.1 Creating a Purchase Order
139
6.1.2 Receiving Goods from a Purchase Order
141
6.1.3 Receiving the Invoice for a Purchase Order
149
6.2 External Procurement and Exchange Rate Variances
151
6.2.1 Exchange Rates in the Moment of the PO
152
6.2.2 Creating a Purchase Order for a Foreign Vendor
153
6.2.3 Receiving Goods from a Foreign Vendor
154
6.2.4 Exchange Rates for Invoice Receipt
156
6.2.5 Invoice Receipt in Foreign Currency
157
6.3 Changing the Controlling Level
160
6.3.1 Changing the Controlling Level for an Individual Material
160
6.3.2 Change the Controlling Level: Mass Processing
163
6.4 Summary
164
7 Manufacturing and Overhead Variances
165
7.1 Manufacturing Order and Preliminary Costing
166
7.2 Simultaneous Costing
172
7.2.1 Production Order Confirmation (BC30020)
172
7.2.2 Goods Issue to the Production Order (BC30020)
174
7.2.3 Goods Receipt from Production Order (BC30020)
176
7.2.4 Production Order Actual Costs (BC30020)
178
7.2.5 Production Order Confirmation (BC90010)
180
7.2.6 Goods Issue to the Production Order (BC90010)
181
7.2.7 Goods Receipt from Production Order (BC90010)
183
7.2.8 Production Order Actual Costs (BC90010)
185
7.3 Plant-to-Plant Material Transfers
187
7.4 Period-End Processing
189
7.4.1 Entering Actual Activity Type Prices
190
7.4.2 WIP Calculation (Determination of the Work in Process)
192
7.4.3 Variance Calculation
194
7.4.4 Settlement
195
7.5 Summary
200
8 Periodic Actual Costing
201
8.1 Creating a Costing Cockpit Run
202
8.2 Material Selection
205
8.3 Determine Sequence
207
8.4 Single-Level Price Determination
209
8.4.1 Allowing Material Price Determination
210
8.4.2 Single-Level Price Determination Parameters
212
8.4.3 Single-Level Price Determination Execution
216
8.4.4 Single-Level Variances Absorption
216
8.4.5 Periodic Unit Price (After Single-Level Price Determination)
221
8.5 Multilevel Price Determination
223
8.5.1 Multilevel Price Determination Parameters
225
8.5.2 Multilevel Price Determination Execution
231
8.5.3 Multilevel Variances Absorption
232
8.5.4 Periodic Unit Price after Multilevel Price Determination
241
8.6 Post Closing
243
8.6.1 Allowing Closing Entries
244
8.6.2 Post-Closing Parameters
244
8.6.3 Post-Closing Execution
247
8.6.4 Accounting Documents after Post Closing
247
8.6.5 Material Master after Post Closing
256
8.7 Mark Material Prices
257
8.7.1 Mark Material Prices Parameters
258
8.7.2 Release Material Prices
260
8.8 Summary
261
9 Actual Costing Revaluations
263
9.1 Revaluation of Consumption
264
9.1.1 Revaluation of Consumption Configuration
264
9.1.2 Sales Process and Material Ledger Postings
266
9.1.3 Period Closing
270
9.1.4 Review
275
9.2 Revaluation of Work in Process
276
9.2.1 WIP Revaluation Configuration
277
9.2.2 Work in Process Scenario
278
9.2.3 WIP Calculation and Revaluation at Actual (Closing Period 02)
281
9.2.4 Reverse Work in Process
293
9.2.5 WIP Reversion with Actual Costs (Closing Period 03)
294
9.2.6 WIP Revaluation Reports
301
9.3 Summary
307
10 Actual Costs and Value Flow Reports
309
10.1 Actual Cost Component Split
310
10.2 Valuated Actual Quantity Structure
312
10.3 Actual Bill of Materials
316
10.4 Value Flow Monitor
318
10.4.1 Value Flow Monitor Selection
320
10.4.2 Value Flow Monitor Views
323
10.5 Activity Types Value Flow Display
329
10.6 Summary
331
11 Material Ledger: More Functionalities
333
11.1 Transferring Actual Costs to CO-PA
334
11.1.1 Configuring CO-PA
334
11.1.2 Periodic Valuation in CO-PA
340
11.2 Debiting or Crediting Materials
345
11.3 Changing Actual Cost Component Split Values
351
11.4 Distribution of Usage Variances (DUV)
354
11.4.1 DUV Configuration
355
11.4.2 DUV Process Example
362
11.4.3 DUV for Activity Allocation
371
11.4.4 DUV Report
374
11.5 Alternative Valuation Run (AVR)
376
11.5.1 Creating an AVR for Cumulative Periods
376
11.5.2 AVR Results and Analysis
382
11.5.3 AVR Comparison Report
385
11.5.4 Transferring the AVR Results to CO-PA
386
11.6 Summary
391
PART III Advanced Topics in the Material Ledger
393
12 Transfer Prices and Multiple Valuation Approaches
395
12.1 Transfer Price Concepts
396
12.2 Multiple Valuation Approach Implementation Scenarios
397
12.2.1 New Implementation
397
12.2.2 Implementing Transfer Pricing in a Live System
397
12.3 Multiple Valuations Configuration
399
12.3.1 Creating a Currency and Valuation Profile
399
12.3.2 Assigning Currency and Valuation Profile to a Controlling Area
402
12.3.3 Creating Versions for Valuations
403
12.3.4 Creating Additional Valuations in Financial Accounting
404
12.3.5 Defining Depreciation Areas
406
12.3.6 Specifying the Use of Parallel Currencies
407
12.3.7 Assigning Currency Types to the Material Ledger
408
12.4 Profit Center Implementation Configuration
409
12.4.1 Profit Center Accounting (PCA) Transfer Pricing
409
12.4.2 General Ledger Accounting Transfer Pricing
410
12.5 Automatic Account Determination Configuration
411
12.5.1 Determining Accounts for Internal Goods Movement
412
12.5.2 Determining an Account for Production Variances
413
12.5.3 Determining the Valuation Approach Clearing Account
415
12.6 Defining the Transfer Prices Pricing Procedure
416
12.6.1 Defining Condition Tables
416
12.6.2 Defining Access Sequences
418
12.6.3 Defining Condition Types
419
12.6.4 Defining a Pricing Procedure for Transfer Pricing
422
12.6.5 Defining Transfer Pricing Variants
423
12.7 Optional Configuration
424
12.7.1 Product Cost Type
424
12.7.2 Product Costing Variant
426
12.7.3 Planning Costing Versions
429
12.7.4 Maintain Operating Concern to Carry Profit Center Valuation
430
12.7.5 Assign the SD Conditions to the Value Fields
431
12.7.6 Assigning Accounts for Internal Goods Movements
432
12.7.7 Activating Profit Center Valuation in CO-PA
433
12.8 Multiple Valuations Startup Procedure
434
12.8.1 Activating Multiple Valuations
435
12.8.2 Setting the Valuation Areas as Productive
436
12.9 Multiple Valuations Process Examples
436
12.9.1 Defining the Condition Records
436
12.9.2 Standard Costing Estimate
438
12.9.3 Material Master Prices
439
12.10 Summary
440
13 Multiple Valuation of Cost of Goods Manufactured and IFRS
443
13.1 Introduction to IFRS
444
13.2 Multiple Valuation of Inventory Concept
445
13.3 Multiple Valuation of COGM Configuration
447
13.3.1 Activation of the Business Function FIN_CO_COGM
448
13.3.2 Define Accounting Principles
448
13.3.3 Assign Accounting Principle to Ledger Groups
449
13.3.4 Define Currency and Valuation Profile
449
13.3.5 Assign Currency and Valuation Profile to Controlling Area and Activation
452
13.3.6 Definition of Additional CO Version in Controlling
452
13.3.7 Activation of Activity Consumption in Quantity Structure and Credit of Cost Centers
454
13.3.8 Transfer Depreciation from Asset Accounting
455
13.3.9 Transfer Closing Entries from the Material Ledger to Controlling
456
13.3.10 Define Alternative Accounts for Material Ledger Postings
458
13.4 Periodic Process for Multiple Valuation of COGM
460
13.4.1 Transfer of Depreciation to Controlling-Cost Center Accounting (CO-CCA)
460
13.4.2 Price Calculation
463
13.4.3 Calculation of Cost of Goods Manufactured and Closing Posting
466
13.5 Summary
470
14 Actual Costing Cross-Company Code
471
14.1 Stock in Transit and Actual Costing Function Prerequisites
472
14.1.1 Business Function LOG_MM_SIT
472
14.1.2 Activation of the Business Function LOG_MM_SIT
473
14.1.3 Creating a Cost Component for Delta Profit
474
14.1.4 Creating Group Valuation
475
14.1.5 Electronic Data Interchange
477
14.2 Procurement Process
477
14.3 Stocks in Transit and Purchase Order (GRP)
478
14.4 Intercompany Profits in the Actual Cost Component Split
481
14.5 Cross-Company Code Stock Transfer Processes in Multilevel Actual Costing
483
14.6 Summary
485
15 Material Ledger on SAP HANA
487
15.1 Why Use SAP HANA for Material Ledger?
488
15.2 Material Ledger Accelerator
489
15.3 Data Replication
490
15.3.1 SAP LT Replication Server
491
15.3.2 Application Triggers 1:1 Replication to SAP HANA Database
492
15.3.3 Application Converts Data to Optimized Table Structures
493
15.3.4 Special Case: Transaction-Based Update for FCML Reporting Tables
497
15.3.5 Summary: Options for Replication for ML Accelerators
498
15.4 Application Settings for SAP ERP Accelerators: Transaction HDBC
499
15.4.1 Application Area
499
15.4.2 General Application Settings
500
15.4.3 Replication Tables
500
15.4.4 Replication Options
501
15.4.5 Further Application-Specific Settings
502
15.5 Show Database Table Content via Transaction SE16H
504
15.6 Closing Procedures
505
15.7 Reporting
506
15.7.1 Material Price Analysis
506
15.7.2 Drill-Down Reporting
507
15.7.3 Virtual InfoProvider
510
15.7.4 Accelerated BW Extraction
511
15.7.5 Price Difference Balance
511
15.7.6 Network Graphics
515
15.8 Summary
518
Appendices
521
A Examples in T Accounts
523
A.1 Period 01
523
A.2 Period 02
532
B Bibliography
535
C The Author
537
Index
539