The Associated Cement Companies Classified: INTERNAL USE ONLY The Associated Cement Companies Limited Cost Allocation Thane, 26,July 2006

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Agenda  Allocation (Distribution/Assessment)  CCA Assessment Allocation  Overview of Activity Calculation  Reporting  CCA Standard Report  PCA Standard Report

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Inventories Main cost centres Pre-process cost centres Auxiliary cost centres Alternative raw material preparation purchased Raw material preparation Raw material purchased Clinker purchased Raw meal preparation 70 % to clinker production 30% to cement grinding Power generation Products Bag Bulk Traditional fuels preparation Infrastructure and mainte- nance Plant management General plant services Power and control network Parts and supplies management Plant maintenance and workshops Quality control and laboratory Mobile equipment maintenance garage Water supply/ treatment/ distribution Sewage treatment (plant) Solid waste Volume reference tons Volume reference kWh/t Alternative fuels preparation Cement Allocation to all receiving cost centres Volume reference tons Clinker produced Raw material produced Preparation of additives (including e.g. slag grinding) Preparation of correctives Cement grinding Volume reference tons Railway traffic infra- structure (at plant) Clinker production Raw material extraction Clinker Cost accounting manufacturing cement

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cost Allocation  To allocate cost between cost objects.  There are 2 types of allocation:  Distribution: use Primary cost elements (Multi-line allocation).  Assessment: use Secondary cost element (One line allocation).

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Distribution  Intended for the transfer of primary costs from a sender cost center to receiver controlling objects.  Only primary costs can be distributed  Original costs are retained on the receivers  Distributions can be reversed and repeated

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Assessment  Designed for the allocation of primary and secondary costs  Each segment of an assessment cycle is assigned an assessment cost element  Original costs are not displayed on the receivers  Assessment can be reversed and repeated

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cycle – Segment Method

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Sender and Receiver Rules

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cost Allocation Distribution (CCtr only) Assessment (CCtr only) Sender Cost Centers Receivers Cost Centers Periodic Allocations Sender and Receiver

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Running More Than One Cycle

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cycle Header

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cycle/Segment Code Structure Cycle Coding Usage  NBL001 – NBL099 Allocate cost from centers to other cost centers Segment CodingUsage  NSG0001-NSG0999Segment that allocate cost from secondary cost element of 1 CCtr to others

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cost Element Electricity 1,000 2, Salaries 1,000 1, Travel Telecom. 1, Total Cost 3,500 3,200 EG Sender Cost Center Receiver Cost Center Allocation

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cost Element Electricity 3, Salaries 2, Travel Telecom. 1,200 Total Overhead Cost 0 6,700 EG Sender Cost Center Receiver Cost Center Distribution Allocation

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Cost Element Electricity 1,000 2, Salaries 1,000 1, Travel Telecom. 1, Allocation cost (3,500) 3,500 (Secondary C.E.) EG Total Overhead Cost 0 6,700 Sender Cost Center Receiver Cost Center Assessment Allocation

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Exercise 4: Assessment Cycle for CCA 1.Display Assessment Cycle CCA by menu path. 2.Display Assessment Cycle CCA by use T-code. 3.Execute Assessment Cycle CCA by use T-code.  Refer to BPP …..

The Associated Cement Companies Classified: INTERNAL USE ONLY The Associated Cement Companies Limited Price Calculation Thane, 26 July, 2006

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module CCA Period-End Process  Actual Assessment  Actual Cost Splitting  Actual Price Calculation Discuss more in Month end process

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Actual Cost Component Split of the Price

The Associated Cement Companies Classified: INTERNAL USE ONLY The Associated Cement Companies Limited Reporting Thane, 26 July,2006

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Reporting in Cost center and Profit Center  Cost flow from SAP R/3 to CO Module.  Data flow in Cost Accounting Systems:  Report Selection for CCA  Report Selection for PCA

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Report for Cost Center Accounting

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Report Selection Criteria

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Line Item Report: Maintain Display Variants

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module PCA Information System Overview

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module PCA Standard Reports

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Report for Profit Center Accounting

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module Questions & Answers

/nn Not to be quoted or reproduced without written permission The Associated Cement Companies Classified: INERNAL USE ONLY CO Module We … Know the way, show the way, go the way