Actual Postings Financial accounting Materials mgmt Controlling MM CO Financial accounting Materials mgmt Controlling Deliveries Services Material issues Internal activities Overhead Internal Order Maintenance Investment Repairs - - - The high level of integration of the SAP System allows you to post costs to your orders from all the different application modules. You can post actual costs from financial accounting: here you post primary costs to your orders in the form of deliveries and services from third parties; materials management: here you post material issues and reservations for your orders; cost accounting: here you post internal cost allocations, transfers of costs and revenues, and overhead surcharges to your orders.

Actual Posting: Integration with Materials Mgmt MM Purchase order Material issue 25 units steel pipe - Price: 30/pc 100 meters of cable - Price: 12/m Goods receipt Invoice receipt Order 4711 Cost element Actual You post purchase orders for internal orders with the appropriate function in Purchasing and the special account assignment category "F". Depending on the selections you make in the purchase order, the values are updated as actual costs on the order either when the goods themselves are received, or when the final invoice arrives. You post a material issue for an order using the functions in Inventory Management in conjunction with a special material movement type. Once again, the material costs are updated as actual costs on the order. 450000 Steel 75.00 465000 electrical installation 1200.00 ? 1950.00

Actual Posting: Integration with Financial Accntg. Invoice FI Smith Ltd 08/27/94 Product Number Price Scaffold 1 68.000.- 68.000.- Vendor 4711 - Smith Ltd expense - Ext procurement Posting 68.000.- 68.000.- Order 415000 68.000.- ?68.000.- Order 4711 Cost element Actual You define the G/L accounts relevant in cost accounting (namely the expense accounts in the profit and loss statement) as cost elements in the system. If you post to these cost elements in financial accounting, you must always specify an additional cost accounting posting (for example, an order or cost center). This means the costs are updated as actual costs on the specified object.

Actual Postings within Cost Accounting Transferring costs Order 1 Cost element Actual 400000 2000.- + 2000.- - ? 0 Order 2 Cost element Actual 400000 2000.- + ? 2000.- Internal Order Applic. -> Actual Postings -> Repost Costs You sometimes have to transfer costs and revenues to correct mistakes when posting from primary systems. For example, if you entered the wrong order when creating a purchase order for a material, the wrong internal order will be debited with the material issue. You can transfer these costs to the correct order using the transfer function. The system retains the original cost element.

Actual Postings within Cost Accounting Internal cost allocation Cost center 1 Order 2 Cost element Actual Activity type SETUP 610000 280.00 ? 280.00 + Plan price 70.00 4 units for order 2 Internal Order Applic. -> Actual Postings -> Activity Allocation Using activity allocation, you can post internal activities from the producing cost center to the order which used them. The quantity used is valuated using the planned price stored in the cost center. The order is debited under an allocation cost element.

Actual Postings within Cost Accounting Overhead surcharges Periodic allocations Determined and posted as in planning Simulation Periodic transfers Order / Cost center 100% credit Order Assessment cycle Settlement Order We distinguish between three types of periodic allocation: 1.Overhead surcharges: As with planned overhead, the system determines these surcharges using the costing sheet. There is a simulation function available to allow you to check the values before posting. 2.Periodic transfers: By defining an assessment cycle during system configuration, you can allocate costs periodically from orders or cost centers to a receiver order. This saves you having to settle orders which are always allocated 100% to other orders. In addition, if you use this procedure, the original cost element is retained. This is not the case if you use the traditional settlement functions. 3.Settlement: For a detailed description of the settlement functions, please refer to Chapter 7 of this book. Order Cost center Asset

Percent-related Surcharges Calculation base B000 Frm CElem To CElem 400000 419000 Cost Elements Actual Plan 400000 10,000 15,000 410000 10,000 10,000 419000 5,000 5,000 Subtotal 25,000 30,000 Surcharge % 25% 20% Surcharge $ 6,250 6,000 Totals 31,250 31,000 Overhead: Z010 Valid from Valid to Type Key % 01/01/1996 12/31/9999 Act. SAP 25 01/01/1996 12/31/9999 Plan SAP 20 CHARGE SURCHARGE TO ???? Credit E01 Valid to CElem Object 06/30/1996 660000 CCtr 12/31/1996 664000 Order COSTING SHEET A00001 Base Overhead Description Credit B000 Material Z010 Material ovhd E01 Material costs Internal Order Config. -> Actual Postings -> Periodic Allocations -> Overhead The costing sheet determines: the direct costs to which overhead is applied under which conditions overhead is calculated the percentage overhead, depending on these conditions which object (cost center, order) is credited under which cost element when actual costs are posted NEED TO CREATE A COSTING SHEET TO PERFORM A SURCHARGE!

Volume-related Surcharges Warehouse Warehouse Cost Center Depreciation 1000.- Allocated storage costs - 200.- Order Oil 1000.- Storage costs 200.- 1 barrel Quantity-related Surcharges Amount per Unit 200. - 1 Barrel Internal Order Config. -> Actual Postings -> Periodic Allocations -> Overhead In Release 3.0 overhead surcharges can be calculated as a fixed amount on each unit. Example: The storage costs of one barrel are not usually dependent on the value of the contents of the barrel but on the overall number of barrels in the warehouse. In this example, storage costs of $200 per barrel are charged.

Applying Overhead Direct material costs + = Material overhead Direct labor costs + = Manufacturing overhead COSTING- SHEET Material costs + Manufacturing costs = Costs of goods manuf. + Administrative overhead + Sales overhead = Cost of sales Overhead calculation is used within absorption costing to allocate overhead costs. The rules for calculating the overhead are defined in a costing sheet.

Costing Sheets Calculation Base - COSTING SHEET Cost Portion: 400000 - 419999 COSTING SHEET ROW BASE OVHD DESCRIPTION FRM TO CR Cost Portion: Fix Percentage 10 B000 MATERIAL 20 C000 MATERIAL O/H 10 E01 Overhead Field - Plan %or Amount Actual % or Amount 30 B001 B001 WAGES 40 B002 B002 SALARIES 50 C001 C001 MANUFG O/H 30 40 E02 Credit Key Field - Validity Period Cost Object Cost Element The 3.0 Costing Sheet carries additional criteria in the Calculation base to determine whether total, fixed or variable portions are applicable. You can either keep the splitting of the surcharge according to the splitting of the base value or select a fix-percentage rate that determines how much of the variable cost should be transformed into fixed costs.

Elements of a Costing Sheet Calculation base cost element origin Overhead percentage rates plan / actual conditions - Order type - plant - company code - business area - overhead key Credit object - cost center - order A costing sheet consists of a number of elements: To which direct costs is overhead to be charged? What is the percentage overhead charged to these direct costs? Under which cost element is the overhead posted and which object is relieved of costs?