If you are looking for a guide that shows you how to set up SAP ERP Financials Controlling for Product Costing and how it integrates with other components, this book is for you. This comprehensive resource is for anyone in finance, production planning, purchasing, or sales and distribution with an interest in the integrated areas of product costing.

The author shows you how overhead costs flow from financial postings to cost centers, and then on to manufacturing orders. Readers also discover the ins and outs of the material ledger, transfer pricing, reporting, and learn how Product Cost Controlling allows management to manage product costs and make decisions about the optimal price at which to market products. In addition, you'll explore how to address common problem areas, including month-end processing, long run times, and message and variance analysis.

This is the one resource you need to learn how Product Cost Controlling works in SAP ERP Financials.

Highlights

• Preliminary Cost Estimate
• Master Data
• Controlling Configuration Settings
• Material Ledger
• Manufacturing Types
• Cost Object Controlling
• Reporting
• Information System
• Variance Calculation

About the Author(s)

John Jordan is Founder and Principal Consultant at ERP Corp. and has worked with many clients worldwide. He regularly speaks at conferences and publishes articles, and is considered one of the leading experts in Controlling by clients and peers.

Table of Contents

1 ... Introduction ... 17
... 1.1 ... Structure of this Book ... 18
... 1.2 ... Looking Ahead ... 22

2 ... Integrated Planning ... 27
... 2.1 ... Profitability Analysis ... 28
... 2.2 ... Sales and Operations Planning ... 29
... 2.3 ... Long-Term Planning ... 30
... 2.4 ... Cost Center Planning ... 39
... 2.5 ... Final Planning ... 46
... 2.6 ... Summary ... 47

3 ... Controlling Master Data ... 51
... 3.1 ... Cost Element ... 51
... 3.2 ... Cost Center ... 65
... 3.3 ... Activity Type ... 76
... 3.4 ... Statistical Key Figure ... 87
... 3.5 ... Summary ... 89

4 ... Material Master Data ... 91
... 4.1 ... MRP 1 View ... 92
... 4.2 ... MRP 2 View ... 95
... 4.3 ... MRP 4 View ... 98
... 4.4 ... Costing 1 View ... 102
... 4.5 ... Costing 2 View ... 115
... 4.6 ... Accounting 1 View ... 125
... 4.7 ... Accounting 1 View -- Material Ledger Activated ... 131
... 4.8 ... Accounting 2 View ... 138
... 4.9 ... Summary ... 146

5 ... Logistics Master Data ... 149
... 5.1 ... Bill of Material ... 149
... 5.2 ... Work Center ... 158
... 5.3 ... Routing ... 173
... 5.4 ... Product Cost Collector ... 184
... 5.5 ... Purchasing Info Record ... 200
... 5.6 ... Summary ... 205

6 ... Costing Sheets ... 207
... 6.1 ... Overhead ... 207
... 6.2 ... Calculation Base ... 209
... 6.3 ... Overhead Rate ... 210
... 6.4 ... Credit Key ... 211
... 6.5 ... Summary ... 212

7 ... Cost Components ... 213
... 7.1 ... Cost Component Terms ... 213
... 7.2 ... Cost Components with Attributes ... 217
... 7.3 ... Cost Component View ... 229
... 7.4 ... Organizational Units of Cost Components ... 235
... 7.5 ... Cost Component Groups ... 239
... 7.6 ... Summary ... 244

8 ... Costing Variant Components ... 245
... 8.1 ... Define Costing Variant ... 245
... 8.2 ... Costing Type ... 247
... 8.3 ... Valuation Variant ... 257
... 8.4 ... Date Control ... 279
... 8.5 ... Quantity Structure Control ... 282
... 8.6 ... Transfer Control ... 293
... 8.7 ... Reference Variant ... 298
... 8.8 ... Summary ... 302

9 ... Costing Variant Tabs ... 303
... 9.1 ... Control ... 303
... 9.2 ... Quantity Structure ... 304
... 9.3 ... Additive Costs ... 312
... 9.4 ... Update Tab ... 314
... 9.5 ... Assignments ... 317
... 9.6 ... Miscellaneous ... 321
... 9.7 ... Summary ... 323

10 ... Standard Cost Estimate ... 325
... 10.1 ... Create Standard Cost Estimate ... 326
... 10.2 ... Mark and Release ... 331
... 10.3 ... Costing Run ... 334
... 10.4 ... Summary ... 347

11 ... Preliminary Cost Estimate ... 349
... 11.1 ... Create Preliminary Cost Estimate ... 349
... 11.2 ... Production Process ... 352
... 11.3 ... Transfer Control ... 352
... 11.4 ... Mass-Processing ... 355
... 11.5 ... Summary ... 356

12 ... Unit Cost Estimate ... 357
... 12.1 ... Base Planning Object ... 357
... 12.2 ... Material Cost Estimate Without Quantity Structure ... 361
... 12.3 ... Summary ... 363

13 ... Preliminary Costing ... 367
... 13.1 ... Production Order Control ... 368
... 13.2 ... Display Planned Costs ... 372
... 13.3 ... Summary ... 374

14 ... Simultaneous Costing ... 375
... 14.1 ... Goods Movements ... 375
... 14.2 ... Confirmations ... 381
... 14.3 ... Report Costs ... 388
... 14.4 ... Summary ... 389

15 ... Overhead ... 391
... 15.1 ... Configuration ... 391
... 15.2 ... Overhead Period-End Processing ... 392
... 15.3 ... Summary ... 394

16 ... Work in Process ... 395
... 16.1 ... WIP Configuration ... 396
... 16.2 ... Results Analysis Configuration ... 408
... 16.3 ... WIP Period-End ... 411
... 16.4 ... Summary ... 416

17 ... Variance Calculation ... 417
... 17.1 ... Types of Variance Calculation ... 417
... 17.2 ... Variance Configuration ... 418
... 17.3 ... Variance Categories ... 425
... 17.4 ... Variance Period-End ... 428
... 17.5 ... Summary ... 434

18 ... Settlement ... 435
... 18.1 ... Settlement Configuration ... 435
... 18.2 ... Settlement Period-End ... 454
... 18.3 ... Summary ... 457

19 ... Special Topics ... 459
... 19.1 ... Sales Order Controlling ... 459
... 19.2 ... Subcontracting ... 473
... 19.3 ... Material Ledger ... 477
... 19.4 ... Summary ... 489

20 ... Information System ... 491
... 20.1 ... Product Cost Planning ... 491
... 20.2 ... Cost Object Controlling ... 500
... 20.3 ... Summary ... 518
... 20.4 ... Book Summary ... 519
... 20.5 ... Looking Ahead ... 521

A ... Glossary ... 523

B ... Bibliography ... 547

C ... Author Biography ... 549