Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Product cost by Sale Order with Variant Configuration End to End Test Case up to Actual Costing Run.

Demonstrating Cost component structure for better clarity about costing, we have two Cost component
structures like below.

⮚ Detail Cost Component structure for Cost Accounting and business.

⮚ Auxiliary Cost Component Structure for CIO and higher management.

1. Detail Cost Component structure for Cost Accounting and business.

2. Auxiliary Cost Component Structure for CIO and higher management.

Note: - We can create two cost component structure as per demonstrated like above to address
different audience for better clarity and respected reporting.

3. Plan rate calculation techniques.

⮚ Activity price calculation with Dependent and Independent.
⮚ Overhead Calculation with cost sheet.
⮚ Activity price calculated with templates.
⮚ Calculate indirect cost through Splitting structure.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

 Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

⮚ Activity price calculation with Dependent and Independent

⮚ Use Production Cost Center. DPCL-VC :- PRODUCTION CC-V

Activity Type Description Primary Secondary KP26 KP06 KP06 Total KSPI= KP06 Dependent /
KL01 Cost Cost Qty Fix Variable KP06 / KP26 Independent
Element Element Value Value

MANPOW / HR SALARIES A/C 400801 943001 16000 20000 8000 28000 1,75 Dependent

MACHIN /HR MACHINE/DEPRECIATATI 400800 943002 8000 6000 4000 29000 36,25 Dependent

POWER / KWH ELECTRICITY A/C 400802 943003 2000 6000 3000 9000 4,50 Dependent

FULE / L FUEL CHARGES A/C 400803 943004 4000 5000 3000 8000 2,00 Dependent

WATER / L WATER CHARFES A/C 400804 943005 40000 6000 5000 11000 2,75 Dependent

QUALIT / HR QC EXP A/C 400805 943006 1800 30000 30000 166.666,67 Independent

ROYALI / TO ROYALITIES PAYMENTS 400806 943007 1000 2000 2000 2,00 Independent
A/C

REPAIR / HR REP & MA EXP A/C 400807 943008 1440 6000 6000 41.666,67 Independent

⮚ Calculate indirect cost through Splitting structure.

Indirect Cost On. Description Primary Secondary KP26 KP06 KP06 Total KSPI= Dependent /
Cost Cost Qty Fix Variable KP06 KP06 / Independent
Element Element Value Value KP26

MACHINE/DEPRECIATATI INDIRECT MATERIAL 400700 12000 12000 Independent

MACHINE/DEPRECIATATI INDIRECT MANPOWER 400701 3000 3000 Independent

MACHINE/DEPRECIATATI INDIRECT OH 400702 4000 4000 Independent

Two benefits through splitting structure

⮚ Primary cost element / expenses link to correspondence activity type.

⮚ Primary cost component split benefit.

KP26 - Change Plan Data for Activity Types & KP06 - Change CElem/Activity Input Planning

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

S_ALR_87013611 - Cost Centers: Actual/Plan/Variance

Before Indirect After Indirect Cost

4. KSS4 – Splitting - Only Independent expenses should come like below

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

5. KSPI – Price Calculation.

⮚ System update price in KP26.
⮚ Update value in report S_ALR_87013611 against Activity type (Secondary CE ) Credit side.
⮚ Cost bifurcated with component.

⮚ Cost bifurcated with component.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

⮚ Rate updated in KP26 & KP27

KP06

Dependent

Independent

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Variant business scenario check list

1 DEFINE CHARACTERISTICS CT04
2 DEFINE CLASS CL01
3 RAW MATERIALS WITH VARIANTS -8 and One Non-Variant MM01
4 KMAT – MATERIAL CREATION MM01
5 KP26 WITH PRODUCTION COST CENTER KS01-KP26
6 SUPER BOM CS01
7 WORK CENTER EACH VARIANT WISE CR01
8 SUPER ROUTING CA01
9 PRODUCTION VERSION MM02
10 CONFIGRABLE PROFILE CU41
11 BUSINESS PARTNER – CUSTOMER BP1
12 SALE ORDER CREATION VA01
13 PRODUCITON ORDER CREATION CO08
14 RAW MATERIAL PROCUREMENT ME21N-MIGO
15 PRODUCTION ORDER CONFIRMATION CO11N
16 FG-GOODS RECEIPT MIGO
17 DELIVERY VL01N
18 BILLING VF01
19 COST SETTELEMNT KO88
20
20 ACTUAL COSTING RUN CKMLCP

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.
Variant Material Type is KMAT and Final product is below for map in SAP for variant Configuration.

CLASS LAPTOP
CHARACTERISTICS COLOUR INCHES SCREEN
VALUES PINK 12 INCH TOUCH
RED 14 INCH NORMAL
BLUE 16 INCH

6. CT04 - Create Characteristic

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

7. CL01 – Create Class

8. MM01 – Create Materials

Create below as ROH - Raw material.

1 Material Code Material Description

2 DPP1+PINK DPP1+PINK
3 DPP1+RED DPP1+RED
4 DPP1+BLUE DPP1+BLUE
5 DPP1+12 INCH DPP1+12 INCH

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

6 DPP1+14 INCH DPP1+14 INCH

7 DPP1+16 INCH DPP1+16 INCH
8 DPP1+TOUCH DPP1+TOUCH
9 DPP1+NORMAL DPP1+NORMAL

Create each material with Classification like below as per their characteristic.

Create One material salable product like LAPTOP with material type KMAT.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Finally Final material display like below with all characteristics.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Create normal raw material for production purpose.

9. Create Super Bom CS01 with maintain object dependency.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

10. 1Cerate Work center each variant wise. CR01

11. Create super routing CA01

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Require to maintain operation hour for each process / activity.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

12. Configurable profile CU41

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.
13. Create Business partner.

Business Partner

FI-AP Account Group = DPCV DPCon Vendor Account Group

FI-AR Account Group = DPCC DPCon Customer Account Group

Business poartner Role Use

FLCU00 Business Partner FI Customer (FS: BP) = FD01

FLCU01 Business Partner SD Customer (FS: BP) = XD01

FLVN00 Business Partner FI Vendor (FS: BP) = FK01

FLVN01 Business Partner MM Vendor (FS: BP) = XK01

New Customer and Vendor Created in Company Code DPCL

DPCLVN1 DPCL+VENDOR

DPCLCN1 DPCL+CUSTOMER

14. Create Sale order – Product Cost by Sale Order Scenario. VA01

Create Sale Order System offer Characteristic for select.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Sale order creator persion select charecteristic as per order from customer and system pick respected
data from super bom & super routing.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

VK11

Cost estimate calculation in sale order

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Hear I have use all costing mythology like Cost sheet & template for overhead calculations, Item 28 & 29
is calculated based on cost sheet and item 25,26 & 27 is calculated based on Template.

Sale Order pricing

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

15. Create Production order against sale order – CO08

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

16. Create PO ME21N

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Purchase Price difference clearly identify through Combine based COPA and Material ledger, SAP offer
three COPA Costing based, Account Based (Margin Analysis) third combine based.

CKM3 – Material ledger price analysis display – Clearly identify Purchase price differences.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

17. MIGO – Transfer posting material stock from Normal stock to sale order stock.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Material document 4900001418 posted.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.
18. Production order confirmation Operation wise. CO11N - RKL

Finance Requirement: - If finance person ask the 80% cost booked against production order at any time,
then do not require to wait till month. Now after implementing attributed profitability segment system
updated COPA and Order number in ACDOCA table due to that finance person take report any time.

Consumption entry based on confirmation of production order only Raw material.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Finish Good Receipt entry of final product.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.
PGI Document against sale order – Cost of good sold split

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.
Display cost against production order.

19. Do month end activity like Overhead calculation, Template calculation and variance
calculation.

CPTA - Individual Processing – RKLT – Template Calculation.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

KGI2 - Individual Processing – KZPI – Overhead Calculation.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

KKS2 - Individual Processing – KSOP,KSOS & KVAR Variance Calculation.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.
With Detail variance bifurcation. – Check in KOB1 for variance

KO88 - Individual Processing – KOAO Settel cost to production order and to Profitability.

Cost Transfer from Sale order to Production Order and Production order to Profitability Analysis.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Actual costing strats

S_ALR_87013611 - Cost Centers: Actual/Plan/Variance

Book Actual expeneces , F-02

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

KSS2 – Actual Splitting - KSI0

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

KSII – Actual Price Calculation – KSII

KSBT – Activity price Report.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.
CKMLCP – Actual costing Run

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.

Document Created by Pruthviraj Raj – 919824745807 Solution Architect SAP S4 HANA FICO at KAAR.

THE ----------------------END---------------------

Document prepared by Pruthviraj Raj SAP S4 HANA FICO Consultant.