1. Actual Postings Financial accounting Materials mgmt ControllingMM 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.

2. Actual Posting: Integration with Materials MgmtMM
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.
Steel electrical installation ?

3. Actual Posting: Integration with Financial Accntg.
Invoice FI
Smith Ltd 08/27/94
Product Number Price
Scaffold
Vendor Smith Ltd expense - Ext procurement Posting
Order ?
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.

4. Actual Postings within Cost Accounting
Transferring costs
Order 1
Cost element Actual
? 0
Order 2
Cost element Actual ?
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.

5. Actual Postings within Cost Accounting
Internal cost allocation
Cost center 1
Order 2
Cost element Actual
Activity type SETUP ?
Plan price
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.

6. 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

7. Percent-related Surcharges
Calculation base B000
Frm CElem To CElem
Cost Elements Actual Plan
,000 15,000
,000 10,000
, ,000
Subtotal 25,000 30,000
Surcharge % % %
Surcharge $ 6, ,000
Totals 31,250 31,000
Overhead: Z010
Valid from Valid to Type Key %
01/01/ /31/9999 Act. SAP 25
01/01/ /31/9999 Plan SAP 20
CHARGE
SURCHARGE
TO ????
Credit E01
Valid to CElem Object
06/30/ CCtr
12/31/ 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!

8. Volume-related Surcharges
Warehouse
Warehouse Cost Center
Depreciation
Allocated
storage costs
Order
Oil
Storage costs
1 barrel
Quantity-related Surcharges
Amount per Unit
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.

9. 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.

10. Costing Sheets Calculation Base - COSTING SHEET Cost Portion:
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.

11. 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?