SAP Eng - Co - Casestudy
SAP Eng - Co - Casestudy
CO
In doing so, you will use the following cost allocation methods: direct activity
allocation and assessment. In conclusion, you will run an automatic price
calculation for the activity types provided by the cost centers. The importance
of these prices was already discussed in the PP case study: their amount –
assuming that activity types of a production cost center are involved – has a
direct impact on product costing.
Because each participant is supposed to use his or her own master data and
transaction data, each participant’s data has to have different names.
Accordingly, all master data objects end with ##. You replace the ## with your
PC or group number. Please follow these naming conventions, as it will
otherwise be impossible to differentiate between the different participants’
master data.
Before you start the case study, you can display the transaction codes in the
SAP Easy Access menu: Select menu item Extras Settings,
and press ENTER or click to confirm.
Change your SAP GUI settings as follows: Choose and then Options. Go
to the Expert tab. Select the Show Keys in All Dropdown Lists indicator and
choose ENTER to confirm.
If the system prompts you to enter the relevant controlling area, enter [1000].
Press ENTER to confirm.
Enter ‘Canteen ##’ as the cost center name and enter a name for the person
responsible. Select cost center category Service cost center [2] and assign
the cost center to hierarchy area Internal services [H1120]. In addition,
choose company code IDES AG [1000], business area Corporate Other
[9900] and profit center Motorcycles [1000].
Because the canteen costs are assessed for three cost centers (including
itself), the number of employees in the cost centers is the allocation base for
cost assessment. You have to create a statistical key figure for this purpose.
In the SAP Easy Access menu, starting from the Cost Center Accounting
folder, choose Master Data Statistical Key Figures Individual Processing
Create (transaction code KK01).
Enter ‘EM-##’ as the key figure number and press ENTER. Type in the name
‘Number of employees’ and choose Persons [PER] as the unit. The key figure
has the category Fxd val. Click Save.
Internal cost flows and activity flows are always allocated in SAP ERP
using secondary cost elements. A cost element classifies the
purpose-related, valuated consumption of factors of production within
a controlling area. In contrast to primary cost elements, secondary cost
elements do not have any corresponding, cost-relevant G/L account.
In the SAP Easy Access menu, starting from the Cost Center Accounting
folder, choose Master Data Cost Element Individual Processing
Create Secondary (transaction code KA06).
Enter ‘PLA-##’ as the cost element number. The cost element should be valid
from 01/01 of the current fiscal year. Press ENTER.
Type in the name ‘Plan Ass. CC-CA-##’ and assign it to cost element
category Assessment [42]. Click Save.
Activity types are organizational units within the controlling area that
classify the activities performed by a cost center. As units of measure,
they are used to allocate internal activities.
The first activity type is rendered by the maintenance cost center. To create it,
starting from the Cost Center Accounting folder in the SAP Easy Access
menu, choose Master Data Activity Type Individual Processing Create
(transaction code KL01).
Enter ‘M-##’ as the activity type number. It should be valid from 01/01 of the
current fiscal year. Press ENTER.
Type in ‘Maintenance hours ##’ as the name. The activity unit is Hour [H], the
activity type should be valid for all cost center categories [*]. Choose activity
type category Manual entry, manual allocation [1] and assign it to the
allocation cost element you just created [MAI-##]. Save your activity type.
Similarly, create the activity type for the assembly cost center:
To assess the canteen costs, you want to create a group with the cost
centers CC-CA-##, CC-MA-## and CC-AS-## (as receivers of the canteen
costs).
From the Cost Center Accounting folder in the SAP Easy Access menu,
choose Master Data Cost Center Group Create (transaction code
KSH1).
In the left-hand column, enter the cost centers CC-CA-##, CC-MA-## and
CC-AS-## in that sequence and press ENTER to confirm. The names of the
cost centers should then be displayed (see graphic).
© SAP
Repeat the process for cost center CC-MA-## and enter 5 as the current plan
value. Save this plan as well.
Repeat the process again for cost center CC-CA-##. Enter 5 as the current
plan value. Save and choose .
In the following steps, you will plan the yearly activity output of maintenance
(1,800 hours) and assembly (6,000 hours).
Primary costs are incurred in all three cost centers each fiscal year. These
costs are 60,000 for salaries and 90,000 for purchased services in the
canteen, maintenance salaries in the amount of 60,000, and assembly wages
in the amount of 150,000.
Repeat the process for cost center CC-CA-## and cost element Purchased
services [417000]. Again, leave all other fields blank. Click Overview
Screen or F5. Enter plan fixed costs of 90,000 and save.
Now enter CC-MA-## as the cost center and Salaries [430000] as the cost
element. Leave all other fields blank. Click Overview Screen or F5. Enter
plan fixed costs of 60,000 and save.
Enter cost center CC-AS-##, activity type A-## and cost element Direct labor
costs [420000]. Now that you have added the activity type, the primary cost
input can be planned activity specifically – that is, with a fixed and variable
price. Then click Overview Screen . The Plan variable costs field should
now be ready for input. Enter 150,000 here and save.
During the current fiscal year, the assembly department plans to have their
equipment checked regularly by the company’s internal maintenance team.
They estimate an effort of 600 maintenance hours.
To plan this, from the Cost Center Accounting menu, choose Planning
Costs/Activity Inputs Change (transaction code KP06). The Cost elements
acty-indep./acty.-dependent (1-101) layout appears. Because this screen is
only suitable for cost elements, not activity types, click to go to the next
layout, Activity input acty-indep./acty-dep. (1-102).
Enter CC-AS-## as the cost center, CC-MA-## as the sender cost center, and
M-## as the sender activity type. Leave all other fields blank. Press enter.
Go to the overview screen and enter 600 hours as plan fixed consumption.
Save.
To check your planning so far, from the Cost Center Accounting menu,
choose Information System Reports for Cost Center Accounting
Planning Reports Cost Centers: Planning Overview (transaction code
KSBL). Then run this report for each of your three cost centers (click
Execute or press F8).
You can see that your cost centers have been charged with primary costs. In
addition, you can also see the total inputs and internal allocation quantities in
maintenance and assembly.
© SAP
Click Save, click three times to go back, and confirm the subsequent
confirmation with YES.
Performing Assessment for Canteen Costs
In the Execute Plan Assessment: Initial Screen enter C-## in the Cycle field
of and press ENTER. Uncheck the Test Run field and choose Execute (click
or press F8).
The system should notify you that processing was completed without errors.
The number of senders should be 1 and the number of receivers 3. Go back
to the SAP Easy Access menu.
© SAP
Examine the results of the assessment in your three cost centers using the
familiar report Cost Centers: Planning Overview (transaction code KSBL).
The maintenance and assembly cost centers should have been charged with
a canteen assessment of 30,000 and 90,000 and the canteen cost center
credited with 120,000. 30,000 remain with CC-CA-##.
You may have noticed that the activity inputs and activity allocations of cost
centers CC-AS-## and CC-MA-## are still valuated with zero, even though all
the quantity information has been entered. This is because no prices have
been planned yet for the involved activity types. We will do this next.
Examine the results of the price calculation in your three cost centers in
report Cost Centers: Planning Overview (transaction code KSBL).
Your assembly cost center report could look like the example below:
© SAP
As you can see, the canteen costs and assessment of the maintenance cost
center amount to 120,000. Direct Labor Costs in the amount of 150,000 are
also incurred. If the total input is 6,000 hours, this results in a price of 45.00
for one assembly hour.
In the SAP Easy Access menu, select Logistics Production Master Data
Work Centers Work Center Create (transaction code CR01).
You want to create the work center in plant [1000] with number ‘CTR-##’. As
usual, you substitute ## with your group/computer number. Choose work
center type Labor [0003]. In the copy from field group use reference work
center Assembly IV [1420] in plant [1000. Press ENTER.
In the Copy from… screen, choose all the selection areas aside from
Costing. Then click Copy or press ENTER. The Create Work Center: Cost
Center Assignment view appears. Enter today’s date as the start date and the
cost center you created (CC-AS-##). Then start the input help (F4) in field
Activity Type for Setup. Only your activity type (A-##) should be displayed.
Select it. Then define key Prod.: Setup time [SAP001] as the formula key.
Proceed similarly for the Machine Time and Labor Time using the following
data:
In the SAP Easy Access menu, select Logistics Production Master Data
Routings Routings Standard Routings Change (transaction code
CA02).
In the next screen, first delete the default values and activity types in the
Setup, Machine, and Labor lines. Then press ENTER.
Now overwrite the value in the Work Center field (1420) with your new work
center CTR-##. Press ENTER to confirm. Put in a time of 6 Minutes in the line
for the setup time and A-## as the activity type. Proceed accordingly with the
second line (machine time): enter 60 Minutes and A-##. In the last line, enter
a labor time of 120 Minutes and A-## as the activity type. Then press ENTER
to confirm.
You have now added a new work center, valuated with your activity type to
the motorcycle routing. As a result, the prices you just calculated will become
effective in the next cost estimate. As you probably noticed, the new work
center will be much more efficient.
Items 6, 7 and 8 in operation 0020 contain the costs of the second operation
in your motorcycle routing with your activity type A-## rendered by work
center CTR-##.
You can see the allocation rates that have been charged for 6 minutes, 1
hour, and 2 hours of assembly activity.
To display the individual cost components, choose menu path Costs
Display Cost Components (or press F5). Click once again and choose
“Select Layout...”. This time, select the layout for Cost Component Groups
[1SAP02].
Several of the ideas in this case study are based on materials developed by Mr Martin Voß (University of
Passau) and Mr Heino Schrader (SAP AG), whose work is acknowledged here.
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