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Enhance The Productivity of Your SAP Controlling Implementation
Enhance The Productivity of Your SAP Controlling Implementation
SAPinsight16
NextGen Super Users:
Department of the Future
Introduction
Leverage FI, CO and MM period locks
effectively
Run batch jobs for WIP, Variance and
Settlement
Learn which cost allocation method is best
for you
Troubleshoot product costing messages
Review cost objects in controlling
Use Material Status to control Logistics
transactions
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SAPinsight16
Topics
Synchronize FI, CO, MM Periods
Automate WIP, Variance, Settlement
Optimize Cost Allocation Methods
Troubleshoot Product Costing Messages
Evaluate the Right Cost Object For You
Utilize Material Status
Summary
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SAPinsight16
(MM) Period
Transaction MMPV - MM period roll job - runs at midnight on the first day
of accounting period
MMPV opens up new MM period, allows material related entries in new
period
MMPV opens new MM period (n), closes period preceding previous (n-2)
When period 12 is opened, 10 is closed, leaves MM periods 12, 11 open
No materials-related entries can be made to MM period 10 - whether
FI and CO period locks for period 10 are open or not
It is usually not advisable to re-open MM period once it is closed
All goods movement transactions for the new period (n) will stop if MM
period for new period is not opened at the correct time (midnight of first
day of n)
MM period roll should be scheduled as a batch job using program
RMMMPERI
Important to keep FI and CO period locks for the new period open,
otherwise MM postings for the new period will fail, even when MM
period is opened
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OB52 – Financial Acctng (FI) Period SAPinsight16
Lock
FI period lock can be maintained for account types: K-Vendor, D-Customer,
A-Assets, S-GL Accounts, M-Materials
Most account types for the new FI periods are opened couple of days prior
to the MM period, (FI period lock for period 12 should be opened on
11/29 or 11/30)
Existing FI period is kept open till period-end close tasks are completed
over few days in the new month
Two periods are open for few days to facilitate closure
Postings are made to the previous period, provided account types are
open
Once FI period is closed, no postings can be made in the previous
period
FI periods can be re-opened any number of times if there is a business
need
Authorization group can be used to restrict postings:
General versus special posting period in FI
Certain users with special access can post to prior period
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SAPinsight16
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SAPinsight16
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SAPinsight16
Topics
Synchronize FI, CO, MM Periods
Automate WIP, Variance, Settlement
Optimize Cost Allocation Methods
Troubleshoot Product Costing Messages
Evaluate the Right Cost Object For You
Utilize Material Status
Summary
9
What do WIP, Variance, Settlement SAPinsight16
do?
Work-in-process (WIP) calculation on orders:
Incomplete (or Work-in-process - WIP) orders: Orders which have costs
posted against them and the system status is neither DLV (delivered),
nor TECO (technically complete) are considered to be incomplete.
Variance calculation on orders
Completed orders: Orders with system status of either DLV (delivered)
or TECO (technically completed) or both are considered to be complete.
Completed orders will qualify for variance calculation, system calculates
target versus actual variances, targets are determined using standard
cost.
Settlement of orders:
Next step: post these values to financial accounting using the
settlement.
Costs are settled to object that is maintained in the settlement rule.
Settlement rule is governed by the order type and the nature of
activity/production performed on the order.
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WIP, Variance, and Settlement: SAPinsight16
Transaction codes
Menu path: Controlling Product Cost Controlling Cost Object
Controlling Product Cost by Order Period-end Closing Single
Functions
Work-in-process (WIP) calculation on orders:
KKAO—WIP mass processing
KKAQ—WIP mass display
KKAX—WIP individual processing
KKAY—WIP individual display
Variance calculation on orders:
KKS1—Variance mass processing
KKS2—Variance individual processing
Settlement of orders:
CO88—Settlement mass processing
KO88—Settlement individual processing
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WIP, Variance, Settlement: SAPinsight16
Accounting Postings
WIP and variance calculation do not post entries!
WIP and variance calculation transactions do not post any financial
entries.
They merely calculate the amount of WIP variance to be settled.
Financial postings occur when the settlement transaction is executed.
Financial postings at settlement for WIP:
Settlement posts WIP entry to the P&L and balance sheet accounts.
Balance sheet posting is carried forward to the next month.
WIP values will automatically be reversed during the subsequent
period's settlement once the orders are set to TECO/DLV status.
Financial posting at settlement for variance:
Settlement posts variance entry to production order variance account
and factory output production (also known as production value) GL
account.
Note: An order usually has either WIP or variance posting in a particular month. An order may get both a
WIP and a variance posting in the month in which an incomplete order is completed.
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WIP, Variance, and Settlement: SAPinsight16
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WIP, Variance, and Settlement: SAPinsight16
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WIP, Variance, and Settlement: SAPinsight16
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SAPinsight16
Topics
Synchronize FI, CO, MM Periods
Automate WIP, Variance, Settlement
Optimize Cost Allocation Methods
Troubleshoot Product Costing Messages
Evaluate the Right Cost Object For You
Utilize Material Status
Summary
16
SAPinsight16
o The sender cost center gets a credit using three original primary cost elements.
o Four receiving cost centers will each see three original primary cost elements as debits.
o Each department can identify cost allocated on each of the three cost elements-rent, telephone, supplies.
Assessment:
o A secondary cost element for assessment, (say, facilities expense), is used to allocate costs.
o The sender cost center gets a credit via the assessment cost element.
o Four receiving cost centers will each see one secondary cost element as debit.
o The receivers do not know how much of this facilities expense consists of rent, telephone, and beverage.
o One would need to look up a report for the sending cost center to identify the breakdown of these costs.
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How to Optimize Performance of SAPinsight16
Allocation Cycles
SAP Note 1751885 (ALLOCATION-Description of database selection methods):
Guidance of which database selection method should be used, and when.
Perform run-time analysis (BASIS activity) to identify the best method.
KSV5 / KSU5: Click on the settings icon. Another window opens up,
Field database selection provides options for:
o Selection by Cycle (default selection)
o Optimized Selection by Cycle
o Selection by Segment
Use parallel processing, cycle will run on multiple servers in parallel.
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SAPinsight16
Topics
Synchronize FI, CO, MM Periods
Automate WIP, Variance, Settlement
Optimize Cost Allocation Methods
Troubleshoot Product Costing Messages
Evaluate the Right Cost Object For You
Utilize Material Status
Summary
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SAPinsight16
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SAPinsight16
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Troubleshooting Product Costing SAPinsight16
Messages
Compilation of frequent messages during costing
Some of these messages can be at times cryptic and require further explanation
Message Message Error description Explanation / root cause Steps for correction
Class No.
KL 023 No control record for Missing planning record for <CO Maintain Cost Center Planning
Activity type in activity Area>/<Cost Center>/<Activity Type> (KP26) for given combination in
planning / qty planning in <version> / <Year> combination respective version and year
CK 060 Object was not costed Missing procurement price / bill of Maintain BOM if proc type in
material, depending on proc type MM03-MRP2 "E" in-house
(MM03-MRP2 view) production; maintain purchase
price if “F" externally procured
CK 130 Work center <WW> in Material uses routing (CA03) that has Maintain cost center assignment
plant <PPPP> has no cost work center (CR03) which is not for work center (CR02) or Resource
center assigned to a cost center (CRC2)
MG 144 The field <MBEW-HRKFT> Missing <Origin Group (field HRKFT)> Maintain relevant views in material
is defined as a required in MM03-Costing 1 view master (MM01 / MM02)
field; it does not contain
an entry
CK 168 Cost estimate for material Costing result of underlying material Rectify errors in underlying
<MMMMMMM> in plant was incorrect cost rollup does not take materials
<PPPP> is incorrect place
CK 197 G/L account <Chart of GL Account maintained in MM-FI Create the GL account, or modify
Account> <Account> does Account determination is not setup GL Account in MM-FI Account
not exist (FS00) determination (OBYC) for GBB-VBR
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Troubleshooting Product Costing SAPinsight16
Messages (cont.)
Message Message Error description Explanation / root cause Steps for correction
Class No.
CK 229 No routing could be Missing routing (CA03) / recipe Maintain routing (CR02) / Recipe
determined for material (C203) setup for the quantity (CRC2)
<MMMMMMM> structure date
CK 239 Cost element <CCCCCCCC> Missing assignment of cost Maintain configuration for cost
is not assigned to a cost element to cost components components (transaction OKTZ),
component (OKTZ) map cost element to appropriate
cost component
CK 240 Cost component split Costing result was zero, no cost Maintain BOM if proc type in
costed with value of zero components could be determined MM03-MRP2 "E" in-house
production; maintain purchase
price if “F" externally procured
CK 322 Consumption account Incorrect valuation class setup in Check valuation class in MM03-
cannot be determined MM03-Accounting 1 view Accounting 1 view/ A valid class will
point to correct consumption
account.
CK 323 There is no exchange rate Missing exchange rate for Maintain exchange rate
for exchange rate type <P> currency combination for given (transaction OB08, updates table
on <MM/DD/YYYY>: exchange rate type and valuation TCURR)
<USD / EUR> date
CK 354 Material <MMMMMMM> Material status does not require Change the status of the material
in plant <PPPP> has it to be costed (MM02-MRP1 view) or exclude the
material status 01 : material from CK40N selection
Blocked for Procmnt/Whse
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Troubleshooting Product Costing SAPinsight16
Messages (cont.)
Message Message Error description Explanation / root cause Steps for correction
Class No.
CK 361 Value of costing item A component material in BOM has a Analyze data setup. Sometimes
00001 in itemization is 0 zero cost (quantity and / or price are there could be valid reasons to
too small) have items on BOM with 0.001
quantity (CS03) or price at 0.01
CK 380 No valid source of supply Missing Source List (ME03) Maintain Source List (ME01 or
could be found ME05)
CK 424 Material Missing Bill of Material even though Create Bill of Material, or
<MMMMMMM> plant proc type (MM03-MRP2 view) is "E" change the procurement type to
<PPPP> has no BOM In-House production "F" - External procurement
CK 465 No price could be Costing result was zero Maintain BOM if proc type in
determined for MM03-MRP2 "E" in-house
material/batch production; maintain purchase
<MMMMMMM> plant price if “F" externally procured
<PPPP>
CK 466 No price could be Missing price for activity AAAAA and Maintain activity price directly
determined for internal cost center CCCCC combination (KP26) or via activity price
activity <AAAAA> calculation (KSPI), verify price
<CCCCCC> (KSBT)
CK 468 No price could be Missing PIR (ME13) for Maintain PIR (ME11 / ME12)
determined for subcontracting, even though MM03- with subcontracting category for
subcontracting MRP2 view has Special Proct Type 30 the given valuation date
- Subcontracting
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Troubleshooting Product Costing SAPinsight16
Messages (cont.)
Message Message Error description Explanation / root cause Steps for correction
Class No.
CK 597 Costing items for material GL Account maintained in Create the cost element, or modify
<MMMMMMM> in plant configuration does not exist GL Account in MM-FI Account
<PPPP> without cost element. as a cost element (KA03) determination (OBYC) for GBB-VBR
CK 776 No valid source of supply Missing purchasing Create PIR (ME11) or modify PIR
found for material information record - PIR (ME12) for the given valuation dates
<MMMMMMM> plant <PPPP> (ME13)
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Transaction Codes for Troubleshooting SAPinsight16
Costing Messages
Category Transaction description Transaction code
Material Master
Display Material MM03 MM / PP / CO related
Material List MM60
Display Material BOM CS03 transaction codes for
Bill of Material
Explode BOM: Level by Level CS11 troubleshooting
Explode BOM: Multilevel BOM CS14
Where-Used List: Material CS15 messages during
Display Work Center CR03 costing
Work Center / Display Resource CRC3
Resource Work Center / Resource List CR05
Assignment of Work Centers / Resources to Cost Centers CR06
Display Routing CA03
Display Rate Routing CA23
Routing / Recipe
Display Master Recipe C203
Production Version: Mass Processing C223
Maintain Source List ME01
Display Source List ME03
Source List
Generate Source List ME05
Source List for Material ME0M
Create Info Record ME11
Purchasing Change Info Record ME12
Information Record Display Info Record ME13
Info Records per Material ME1M
Cost Center Display Cost Center KS03
Accounting Master Display Cost Element KA03
Data Display Activity Type KL03
Set Planner Profile KP04
Change Cost Element / Activity Input Planning KP06
Cost Center Planning Display Cost Element / Activity Input Planning KP07
Change Activity Type / Price Planning KP26
Display Activity Type / Price Planning KP27
Activity Type Price Report KSBT
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SAPinsight16
Topics
Synchronize FI, CO, MM Periods
Automate WIP, Variance, Settlement
Optimize Cost Allocation Methods
Troubleshoot Product Costing Messages
Evaluate the Right Cost Object For You
Utilize Material Status
Summary
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SAPinsight16
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Cost Objects: Prerequisites (Master SAPinsight16
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Cost Objects: Transaction Codes For SAPinsight16
Various Processes
Configure order types, setup prerequisite master data (previous slide)
Setup cost object data, perform transactions, carry out period-end closing steps
(WIP, Variance, Settlement, overhead calculation, template allocation, revaluation of activity prices)
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SAPinsight16
Topics
Synchronize FI, CO, MM Periods
Automate WIP, Variance, Settlement
Optimize Cost Allocation Methods
Troubleshoot Product Costing Messages
Evaluate the Right Cost Object For You
Utilize Material Status
Summary
32
Use Material Status to Control Logistics SAPinsight16
Transactions
The material status determines how a material is handled (which transactions
are allowed / disallowed) in different applications and in business processes
like procurement, MRP, plant maintenance, costing, forecasting, etc.
Cross-plant material status maintained in the Basic Data view applies to all
plants, but Plant-specific material status (MRP1 and Costing 1) overrides the
status in Basic Data
Material status and its attributes are defined in configuration transaction
OMS4
Menu path: Tools Customizing IMG SPRO Execute Project SAP
Reference IMG Logistics – General Material Master OMS4 –
Define Material Statuses
Indicative list of material status (will vary based on business requirement)
10 – Material under setup
20 – Development phase
30 – Commercial production
40 – No production, deplete stock
50 – Obsolete, deletion flag
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Explanation of Material Status in SAPinsight16
OMS4
Message flags in OMS4:
Flag “A” (warning): A warning message
is returned when performing the
function
Flag “B” (error): An error message is
returned when performing the function
Flag “<blank>”: No message
(transaction is allowed)
Example: when material status is 40
(No production, deplete stock)
production order should not be
allowed to be created anymore
Flag “B” (error) is set for production
order in OMS4. Orders that are already
setup are not impacted, but new orders
cannot be created anymore.
Inventory movement transactions are
allowed (warning message)
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Impact of Material Status on Order SAPinsight16
Creation (Example)
When material status is 10 (Material under setup) production order
should not be allowed to be created
Flag “B” (error) is set for this combination in OMS4
When a user tries to create an order from transaction COR1 or via the
MRP run, an error message will be returned
When material status is 20 (Development phase) production order
should be allowed to be created, but with a warning message to the user
Flag “A” (warning) is set for this combination in OMS4
COR1 / MRP run will issue a warning message
When material status is 30 (Commercial production) production order
should be allowed to be created, with no messages
Flag “<blank>” (no message) is set for this combination in OMS4
When material status is 40 (No production, deplete stock) production
order should not be allowed to be created anymore.
Flag “B” (error) is set for production order in OMS4
COR1 / MRP run will issue an error message
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Material Status Setup: Table T141 View SAPinsight16
/ Explanation
• Indicative setup of material status, table T141 view, explanation of headers
• Overview of which transactions are allowed or disallowed for the given
material status and its corresponding business function
• Transactions impacted are listed in the bottom row
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SAPinsight16
Topics
Synchronize FI, CO, MM Periods
Automate WIP, Variance, Settlement
Optimize Cost Allocation Methods
Troubleshoot Product Costing Messages
Evaluate the Right Cost Object For You
Utilize Material Status
Summary
37
SAPinsight16
Resources
First Steps in SAP Controlling (CO) Expert tips to Unleash the Full
http://www.espresso-tutorials.com/Controlling_S0069.php Potential of SAP Controlling
http://www.espresso-tutorials.com/Controlling_0140.php
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$5 Discount on the print version of both: M7CCMU4R
SAPinsight16
Resources (continued)
Get answers to the top 9 SAP Controlling questions
Several authors, Publisher: ERP Corp
http://www.erpcorp.com/learn-more-about-controlling-2016-lp2/
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SAPinsight16
Key Ideas
Leverage FI, CO and MM period locks for smooth
financial close
Schedule jobs to Automate WIP, Variance,
Settlement
Optimize performance of cycles using allocation by
segment
Review message categories to troubleshoot costing
messages
Evaluate cost objects, prerequisites, order types,
transactions
Use material status to control logistics transactions
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SAPinsight16
Questions
sampat_ashish@hotmail.com
ashish.sampat@vthinkinc.com
https://www.linkedin.com/in/sampatashish
Q&A
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