1 Initial Planning

23

1.1 Sales and Operations Planning

24

1.2 Long-Term Planning

25

1.2.1 Create Planning Scenario

26

1.2.2 Long-Term Planning Run

28

1.2.3 Transfer Requirements to Purchasing

32

1.2.4 Transfer Activity Quantities to Cost Center Accounting

35

1.3 Cost Center Planning

38

1.4 Summary

44

2 Cost Estimates

45

2.1 Master Data

46

2.1.1 Material Master

46

2.1.2 Bill of Material

50

2.1.3 Routing

51

2.1.4 Product Cost Collector

52

2.2 Overhead Costs

54

2.2.1 Calculation Base

55

2.2.2 Overhead Rate

56

2.2.3 Credit Key

57

2.3 Cost Components

58

2.4 Costing Variant

61

2.5 Standard Cost Estimate

64

2.5.1 Create

64

2.5.2 Mark and Release

68

2.6 Costing Run

72

2.6.1 Selection

74

2.6.2 Structural Explosion

76

2.6.3 Costing

78

2.6.4 Analysis

79

2.6.5 Marking

81

2.6.6 Release

83

2.7 Preliminary Cost Estimate

85

2.7.1 Production Process

87

2.7.2 Transfer Control

87

2.7.3 Mass-Processing

90

2.8 Mixed Cost Estimate

90

2.8.1 Quantity Structure and Costing Version

91

2.8.2 Create Procurement Alternative

92

2.8.3 Define Mixing Ratios

93

2.8.4 Create Mixed Cost Estimate

94

2.9 Summary

96

3 Actual Postings

97

3.1 Primary Costs

97

3.1.1 Goods Issue to Production Order

97

3.1.2 Vendor Invoice Posting

98

3.2 Secondary Costs

99

3.2.1 Assessment

99

3.2.2 Activity Confirmation

100

3.3 Credits

101

3.3.1 Primary Credits

101

3.3.2 Secondary Credits

102

3.4 Post Actual Costs

103

3.4.1 Create Production Order

103

3.4.2 Confirm Activities

104

3.4.3 Default Activities

106

3.4.4 Operation Sequence

108

3.5 Report Actual Costs

109

3.6 Summary

110

4 Period-End Processing

111

4.1 Types of Variance Calculation

111

4.1.1 Total Variance

111

4.1.2 Production Variance

112

4.1.3 Planning Variance

112

4.2 Variance Configuration

113

4.2.1 Define Variance Keys

113

4.2.2 Define Default Variance Keys for Plants

115

4.2.3 Define Variance Variants

115

4.2.4 Define Valuation Variant for Scrap and WIP

117

4.2.5 Define Target Cost Versions

118

4.3 Variance Categories

122

4.3.1 Input Variances

123

4.3.2 Output Variances

125

4.4 Period End

128

4.4.1 Overhead

128

4.4.2 Work in Process

130

4.4.3 Variance Calculation

136

4.4.4 Settlement

144

4.5 Cost Center Variances

147

4.5.1 Information System

147

4.5.2 Target Cost Analysis

151

4.5.3 Variance Analysis

154

4.5.4 Actual Price Calculation

158

4.6 Purchase Price Variance

163

4.6.1 Master Data

164

4.6.2 Configuration

165

4.6.3 Reporting

166

4.7 Actual Costing/Material Ledger

172

4.8 Summary

172

5 Scrap Variance

175

5.1 Scrap Basics

175

5.2 Assembly Scrap

177

5.2.1 Assembly Scrap Definition

177

5.2.2 Effect of Assembly Scrap on Quantities

177

5.2.3 Assembly Scrap Master Data

178

5.2.4 Planned Assembly Scrap Costs

179

5.2.5 Actual Assembly Scrap Costs

181

5.2.6 Variance Calculation

182

5.2.7 Assembly Scrap Target/Actual

183

5.3 Component Scrap

187

5.3.1 Component Scrap Definition

187

5.3.2 Effect of Component Scrap on Quantities

187

5.3.3 Component Scrap Master Data

188

5.3.4 Planned Component Scrap Costs

189

5.3.5 Actual Component Scrap Costs

190

5.3.6 Variance Calculation

193

5.3.7 Component Scrap Target/Actual

193

5.4 Operation Scrap

197

5.4.1 Operation Scrap Definition

197

5.4.2 Effect of Operation Scrap on Quantities

198

5.4.3 Operation Scrap Master Data

199

5.4.4 Planned Operation Scrap Costs

200

5.4.5 Actual Operation Scrap Costs

202

5.4.6 Variance Calculation

203

5.4.7 Operation Scrap Target/Actual

204

5.5 Combined Scrap

208

5.5.1 Component Scrap

208

5.5.2 Component and Operation Scrap

209

5.5.3 Component, Operation, and Assembly Scrap

209

5.5.4 BOM Item Operation Scrap

211

5.5.5 Operation and Assembly Scrap

212

5.5.6 Calculate Assembly Scrap

212

5.6 Summary

215

6 Reporting

217

6.1 Summarized Analysis Reports

218

6.1.1 Product Drilldown Reports

220

6.1.2 Summarization Hierarchy Reports

227

6.2 Detailed Reports

235

6.3 Line Item Reports

237

6.4 Production Order Reports

239

6.4.1 Order Information System

239

6.4.2 Order Selection

242

6.5 Cost Center Reports

244

6.6 Summary

246

6.7 Guide Summary

247

6.8 Looking Ahead

249

Appendices

251

A Glossary

253

B Bibliography

273

C Additional Resources

275

D The Author

279