Material Costing with Quantity Strecture

The results of a material cost estimate with quantity structure do not differ from one without a quantity structure; they are identical from a costing point of view. Ÿ Cost component split.
This means that the valuation principles outlined in earlier units also apply here. It is only the method by which the costing results are obtained that is different. Material costing with quantity structure can determine the product structure and production plans as entered in Logistics, and convert them into the structures of the itemization and cost component split. n This explains the emphasis on describing the logistical data.In addition, Activity-Based Costing is briefly covered. Finally, this unit describes the price update process after the execution of a standard cost estimate.

The bill of material (BOM) is a directory for an object and its constituent parts, containing information such as the name, reference number, quantity and unit of measure. BOMs are used:
in Material Requirements Planning for procuring parts.
Ÿin Production for staging parts.
Ÿin costing for calculating material costs.

BOM header

The BOM header contains information that applies to all items in the BOM.The BOM status must be active for costing to enable the BOM to be read for a cost estimate.The above slide lists the fields in the BOM header that are relevant to costing.BOM usage: Examples for BOM usage: BOMs used exclusively for engineering or costing purposes.

BOM status : If complex changes are made to a BOM, you can use the BOM status to control when
the BOM is used, such as for a cost estimate.
Area of validity: A BOM can be defined as valid for only a limited range of lot sizes, such as 1 to
1,000 units. You can then create a different BOM for lot sizes exceeding 1,000 units. Therefore, only
one BOM can be used for the defined costing lot size.
Alternative BOM: Alternative BOMs can describe different product structures that create a product
with the same properties. For example, one alternative uses sheet metal A, while the other alternative
uses sheet metal B.

BOM Item

Item category:
ŸL = stock item, valuation in accordance with material valuation strategy or separate cost estimate
ŸN = non-stock item (see next slide)
ŸR = variable -size item, valuation in accordance with material valuation strategy or separate cost estimate

Fixed quantity indicator: This indicates whether the quantity entered is dependent on the lot size. It applies mainly to unavoidable material loss at the start of the production process.Planned scrap: This topic is covered in detail in the appendix under Scrap. Relevancy to costing indicator: If this indicator is not selected, the system ignores the BOM item in the material cost estimate. For standard cost estimates, modified standard cost estimates, and current cost estimates, the only decision to be made is whether or not the item will be costed ("X" or " "). For inventory costing, a relevancy to costing indicator can be entered here that has a devaluation factor in Customizing. This enables you to devaluate BOM items (such as packaging materials) on a flat-rate basis for inventory or commercial purposes.

The settings in the BOM usage and BOM item categories allow you to specify whether this field contains a default value and whether this value can be changed when the BOM is maintained. n Bulk material: Bulk material is usually posted as consumption at production cost centers as soon as it is procured, so it is not included in the cost estimate.

BOM Non Stock material

Nonstock materials are materials that are not kept in inventory. They are always procured externally and assigned directly to the order. Nonstock materials have either no material master, or are maintained with a nonstock material type for the entry tool.For nonstock materials without a material master, data that is relevant to costing (such as prices) is entered directly in the BOM item (purchasing data). Ÿ For nonstock materials with a material master, no prices can be maintained and the materials are valuated in accordance with the strategy specified in the costing variant. The price shown in the BOM does not have to be the same as the price in the cost estimate selected in accordance with the valuation strategy.


Production costs are determined through the routing, the work centers at which the operations are performed, the cost centers and the relevant activity types.A routing consists of one or more operations. Each operation contains information on the work center, production resources and tools, material assignments, operation texts, and standard values (how long, how much).For repetitive manufacturing and process manufacturing, rate routings and recipes can be used.

Work center

Work centers are used in plans (routings, networks, inspection plans, maintenance task lists, and rough-cut planning profiles).Machine group and capacity planner group are synonyms for work center. Work centers are defined with reference to a plant. Work centers are assigned to cost centers.

The standard value key enables you to define the six standard values in the operation. The system assigns a parameter key to the standard values of the operation and of the work in the network activity. This parameter key specifies the following:
Keyword appearing with the standard value on the screen, such as setup, machine, personnel,
teardown, and so on.
ŸDimension (time, quantity, volume, and so on) in which the standard values must be maintained. Ÿ At the same time, the parameter key represents the names of the formula parameters. You can use the formula parameters to represent the standard values in a formula, so as to determine the following: execution time, capacity requirements, costs.

The control key specifies the business functions you want to execute with an operation:
ŸCapacity planning.
ŸCosting: This ensures that the operation is included in costing.
ŸConfirmation: Here you specify whether and how the operation is confirmed.
ŸExternal processing: Here you specify whether the operation is processed internally or externally, or whether both options are possible.

Routing header

Material - plan assignment: A routing can contain multiple materials that are involved in the same production process.You utilize a task list usage to assign the routings to various work areas. In this way, you can create several routings to produce one plant material. These routings are differentiated in your task list usage. Routing status : You use this status to indicate the processing stage of a plan. For example, you could indicate whether the plan is still at the creation stage, or whether you have already released it.


Relevancy to costing:

ŸIf the control key specifies that the operation is not relevant to costing, the relevancy to costing indicator is ignored in the operation. If the control key specifies that the operation is relevant to costing, you can override this with the relevancy to costing indicator in the operation.Assigment of activity types/business process: 
If the reference indicator is turned off in the work center, you can overwrite the standard values of the work center in the routing. Linking the standard times with the activitiy types is carried out via the formulas in the work center.

Production costs are created by combining data from Production Planning with Cost Center Accounting/Activity-Based Costing.The routing describes the quantity of an activity and the location of the operations. The work center describes where an operation is performed.It is linked to a cost center to valuate the activities. The planned activity prices for the work center are calculated through the link to a cost center and the activity type planning for the cost center.


The standard value key enables you to define the six standard values in the operation. The system assigns a parameter key to the standard values of the operation and of the work in the network activity. This parameter key specifies the following: 

Keyword appearing with the standard value on the screen (such as setup, machine, personnel, teardown, and so on) Ÿ Dimension (time, quantity, volume, and so on) in which the standard values must be maintained Ÿ At the same time, the parameter key represents the names of the formula parameters. You can use the formula paramete rs to represent the standard values in a formula, so as to determine the following: Execution time, capacity requirements, costs

Formula: You can use formula parameters to which you have assigned values. You can then link these parameters with mathematical operations such as addition, subtraction, multiplication, or division.

Costing result

The system calculates the costs by multiplying the quantity by the price. The quantity comes from the standard values for the operation and is modified by the performance efficiency rate and a formula.In the itemization for the cost estimate, an internal activity for the cost center/activity type is displayed. Furthermore, the assignment to the operation and work center is saved in the itemization.

Product Cost Planning Overview

Tangible goods:Ÿ
Materials can be produced in-house, subcontracted, or procured externally. Data for these materials is located in the logistics components PP, PP-PI, and MM. This data is accessed when the materials are costed.Ÿ Product cost estimates can also be used for inventory valuation and for comparison purposes in Cost Object Controlling.

Intangible goods:
ŸShipping: Container repacking, storage, quality checking Ÿ Telecommunications: A one-minute long-distance call ŸConsulting: A two-day CO overview
ŸHospital: A heart operation
Training: A product training session at customer premises n Intangible goods are introduced in this course using the example of base object costing. Similar costing methods are provided for services in the form of a cost estimate without a quantity structure.

Goals of product cost planning

  1. What is the amount of the cost of goods manufactured and the cost of goods sold?
    Can we justify production at this market price? What is my lower price limit?
    From a cost accounting point of view, is it cheaper to produce in large or small lot sizes?
    How are the costs broken down? For example, how do the material costs compare to the wages?
    How could the production process be improved?
    Which organizational unit affects the product costs the most? In which plant can the product be manufactured the cheapest?
    What effect have machine depreciation and energy costs had on my product (primary costs)?
    In the SAP system, materials are valuated with one price. This price can be set by a standard cost
Product life cycle

At the start of the product's life cycle, only rough estimates and specifications are available. Product Cost Planning must be able to provide the first precise cost projections. These projections must be:
Delivered quickly
Ÿlexible and variable
Ÿade using existing, similar products or structures (where possible)
ŸWithout a large master data input.
During the product design and specification phase, the costs increase when refinements are made to the  original specifications.After the transition to the prototype stage, the first constructive data can be entered in the form of BOMs. During this phase, the need for integration and for direct access to the data in Logistics increases. Data not available in Logistics is added by the person responsible for product cost planning.
Once the products have reached market maturity, the integration of master data for tangible goods has a significant impact. At this stage, the complete product range is costed regularly, and precise cost shifts are monitored.Improvements in the production process of important products must be reflected by, and analyzed in, Product Cost Planning.


In the early stages of the product life cycle, unit costing and multilevel unit costing are the ideal costing methods due to the following:

ŸEfficient data maintenance
ŸUser can detail and refine the cost estimate as he or she wishes
Access to existing data and cost estimates in the system

When a cost estimate with quantity structure is created, the system uses master data from Logistics.This method costs individual products exactly, and provides various analysis options for comparing different alternatives.Costing runs are used for processing mass data. They are used periodically to cost the entire product spectrum.One of the focal points of this course is integration. Functions are introduced gradually. Consequently, the course materials are not designed to be used as a reference work. For a comprehensive reference work, refer to the SAP Library under Product Cost Planning.

Material cost estimates are saved with reference to a plant.Products produced in more than one plant have a separate cost estimate for each plant.To valuate material movements in Logistics, the system accesses the costing results. The valuation area determines the organizational level at which the material is valuated. To utilize material costing, therefore, it is mandatory that each plant is established as the valuation area.

Views in meterial master

Synonyms for the term material master are material, item master, product, and assembly.In costing, the material master is involved in the calculation of material costs and in updating prices. n The Accounting, Costing, and MRP views are relevant to costing.

Accounting view:
Relevant to material valuation, material price control, and account determination
ŸCosting view:Containsthe control parameters for material costing. Also contains characteristics required for Cost Object Controlling.To be able to cost a material, the Costing view must be maintained.

ŸMRP view: Material status in PP Scrap factors Special procurement 
Indicators: Co-product/Bulk material Production version

The material type determines whether a costing view is allowed for a material. It contains default values that are used when a material is created.Lot size . The lot size entered here is used as the default value for the material cost estimate. In individual processing, the lot size can be overwritten. In mass processing, it cannot be overwritten.

Valuation class. The valuation class controls the account determination. Here, the consumption account is determined, which also appears as the primary cost element in the itemization. Origin group as subgroup of a cost element. If an origin group has been entered for a material, the combination of origin group and cost element is updated in the CO system. You can thus define the following:

ŸOverhead for certain material groups, such as input material groups
ŸCost components for certain raw material groups
Overhead group: Key that groups the materials being manufactured for the same type of overhead application, depending on the product in question.

Material master prices

Planned Prices 1, 2 and 3. These can be maintained for raw materials and purchased parts, and used to valuate the materials in the cost estimate.Tax-based and commercial prices. These prices are entered for purchased parts in inventory costing for values such as the determination of lowest value. An inventory cost estimate can use these prices for valuation, and then update the costing results for finished and semi-finished products in these fields.

Price control. Indicator for price control, according to which the inventory of a material is valuated.The following options are available: 
Standard price.
ŸMoving average price.
A standard cost estimate can be used to update the standard price. You can branch from the accounting and costing views to the results of standard cost estimates. These results update the standard price.

Cost component split

The purpose of cost rollup is to ensure that the cost of goods manufactured (material and production costs) of all materials in a multilevel BOM are included in the cost estimate of the higher-level material. This is achieved by assigning the costs in a cost estimate to cost components. When a multilevel BOM is costed, the costs are rolled up. That is, the cost components of the cost component split are passed upwards in the hierarchy to the cost estimate of the higher-level material. For each material, the cost component split provides information on: 

The value added of the material (upper level).
ŸThe costs of the subordinate materials (lower level).
Up to 40 cost fields can be rolled up in a cost component split. A cost component can carry fixed and variable costs.

A cost component view consists of a combination of cost components according to various characteristics.It creates a filter in the Information System reports so that only data assigned to the view is displayed. In the cost estimate header, you can display up to 5 views as the initital costing result. You assign these views under the Settings menu in the cost estimate header.

Material cost elements

If you create more than one cost estimate for the same material, several business questions arise,such as:

What is the proportion of costs attributable to technical and organizational improvements?
Example: Use of current quantity structure and valuation at historical prices.Subsequent comparison with standard cost estimate.
What is the influence of changed raw material prices and potential wage increases?
Example: Use of historical quantity structure and valuation with current or future prices.Subsequent comparison with standard cost estimate. 
How are the current costs broken down?
Example: Current quantity structure with current prices.
"What if" analyses.
Example: Maintaining and valuating make-or-buy acceptances, prices, quantities and structures under a separate version.

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SAP Reports in live Systems

Using the variation function, you can generate a report for every node and each single value in a hierarchy of characteristics used in the general data selection of a report. When using the variation function, you can interactively navigate within the hierarchy structure.If you want to use the variation function when outputting a report, you must specify this in the report definition.If the variation is used, you only need to carry out one selection run on the database for all reports produced. For this reason, the variation can often be used to reduce the system load.

Creating extracts

You can select and output data without creating an extract. Alternatively, you can decide to select the data and store it as an extract with or without outputting it.Once the data has been stored as an extract, you do not need to select it again. This means that the  time required to output an extract is considerably shorter. When you output an extract, all of the Report Writer functions such as defining threshold values and sorting lists are also available for use. These functions can also be used after a selection run via the database.

Each stored extract is identified by its report group and selection criteria.By choosing the data source, you can decide whether you want to display extracts (default), or select data from the database or from archive files. When you start a report, the system finds all the extracts that match the selection criteria you defined. If a report has been executed for a whole cost center hierarchy by using the variation, the system stores extracts for all cost center groups and single cost centers that are contained in that hierarchy. 

You can also execute reports in the background, so that in times of high system utilization additional processing time is not required.Once you release the background job, the system performs all additional steps without user intervention.For reports with large amounts of data, it is often advantageous to create an extract in the background and afterwards display and process the data online.

You can use mail to send reports within an R/3 system.After you send the report, it appears in the recipient's inbox. The recipient can list the name of the report group, the selection time, and additional information by selecting 'Display'. The report results are displayed using 'Process.'

Creating report interface

When displaying your report online, you can use data from a report in the report/report interface.Other reports are called up based on the corresponding selection criteria.You can specify the receiver reports in the header of every report group or in the library. You can use other Report Writer reports, transactions, report portfolio reports, drilldown reports, or ABAP programs as receiver reports.

Using the report/report interface, you can call up various reports while displaying your report data. The selection criteria used to call up the receiver report depend on the section marked in the sender report. Procedure for using the report/report interface:

Select the data to be analyzed in the sender report.
ŸThe receiver reports are displayed for selection.
ŸThe report/report interface also allows you to call up reports from other applications.

Creating activity group

Standard reports and reports you define can be installed in the reporting tree. End users can call up reports directly from the reporting trees.You can call up Report Writer reports, drilldown reports, transactions, ABAP, reports and report portfolio reports from the reporting tree.SAP delivers a preconfigured reporting tree for each application. If your user is assigned to one or more activity groups, you will receive your personal work center menu in the form of a tree control when you log onto the system. You can compile your own favorites in your work center menu by using drag & drop.SAP provides a series of standard activity groups. A user dependency relationship is set up by assigning area menus to activity groups or roles in the profile generator. In this case, authorizations are combined automatically.

In the activity group maintenance function (transaction PFCG), administrators can define the menu structure for an activity group and combine certain transactions, drill-down reports, ABAP reports,report portfolios, Internet/intranet links, and Report Writer report groups to form a user menu. The structure and terminology of the functions contained in the menu are freely definable. 

The transactions for the user menus can be entered directly, for example, from the SAP menu. In addition to the user menu, the overall view (SAP menu) contains all of the functions provided by SAP. This overall view, however, should only be used if user menus have not been defined yet or when the administrator wants to create new user menus.

Assigning users

An activity group can be assigned to any number of users.The activity group also contains authorizations that the users need to access the transactions, reports, and so on, in the menu.Authorizations can be created automatically for an activity group. Most of the field contents of these authorizations are defaulted by SAP. You can, however, modify these default values or add blank fields. You can then create an authorization profile automatically from these fields using the Profile Generator, and assign it to certain users.

The user menu only contains the entries - transactions, reports, and Web addresses - that are required for the user's day-to-day work. If your system administrator has defined a user me nu for you, it will be displayed automatically when you log onto the system.


Report Writer objects are client dependent objects.You can transport Report Writer objects between various SAP systems or between different clients. Report groups, reports, and models can be transported to these dependent objects from the Report Painter menu.You can transport Report Writer objects between different clients in the same SAP System in one step.Otherwise, you can use the alternatives: create an export file or create a transport request for transport to a different system.

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Report Painter Report Strecture

With the format presented by the Report Painter, you can easily enter your rows, columns, and general selection criteria.The rows constitute characteristic values or groups.The columns consist of basic key figures (e.g. costs, quantities) with characteristic values for key figures.General data selections are carried out using characteristic values, which are then valid throughout the entire report.To define a report, you must determine the row and column structure and the general data selection criteria.

You can use either a combination of characteristic values or a formula to define a row.Columns contain a combination of a key figure and optional restricting characteristic values. You  can also use predefined columns to display business-relevant combinations of key figures and characteristics, for example, actual costs in the current period, scheduled activity, and so on.

To define rows, you select the characteristics you want to display in these rows and enter the appropriate values. You can enter specific values, intervals of values, or a group. n In the report definition, you can use groups that were created in the master data maintenance.You can use the formula editor to define formula rows. The formulas used can refer to other rows in the same section and to cells selected in the report.

SAP delivers a number of predefined columns for the libraries in Overhead Cost Management. You can copy these predefined columns directly into your reports and change them as required.

One way to define a column is to combine a key figure with several characteristics. n To restrict the characteristics, you can enter intervals or groups as you did when defining single values for the report rows.

Using the formula editor, you can calculate additional columns within a section. The formulas used can refer to other columns in the same section or to cells selected in the report.
After you have defined the rows and columns, you can define additional criteria that are valid for the entire report. The additional criteria you select will restrict the data processed in the report. These restrictions are stored in so-called general data selections.

Before a report can be output, it must be included in a report group.A report group is a collection of reports in a library that are executed in one run. Combining several reports in a report group can be useful if the reports are intended to evaluate the same dataset. In this case, the data is only read once and then distributed among the different reports.

You cannot process reports from different libraries in the same report group.When a report group is generated, the system creates ABAP reports, which can then be run. In the first ABAP, inputs are proposed and verified with regard to output parameters, the data source, and extract parameters. In addition, values or sets are proposed for selection, if the report definition contains variables.

In the second ABAP, the data is selected from the database.The last ABAP then formats the data so that it can be output.

When using groups or several single values to define rows, you can define whether only a totals row is to be displayed, or if the complete group hierarchy with subtotals is to be exploded, or if every single value in a row is to be displayed. The system is set up in such a way that only those rows are displayed for which corresponding data exists.If you use a combination of several characteristics in a row block and this row block is exploded, you can choose the hierarchical sequence in which the characteristics are displayed.

SAP Report Painter Basics

Quick Viewer and SAP Query are menu-driven tools that help the user to compile lists. SAP Query comprises an extensive suite of functions for defining reports and compiling various types of report, such as straightforward lists, statistics, and ranked lists. The user can choose the data for the list from any R/3 table. With the Report Painter, users can report on data from a wide variety of applications.The form layout tools enables the user to see the report in the form in which it will appear when the data is output. The Report Writer uses sets exclusively to map the row and column structures, thereby supporting more complex reports.

The drilldown reporting facility provided by SAP is an online information system featuring userfriendly functions that help you navigate through your data. It can also be used to evaluate your data on the basis of all the features contained in the data description. With this interactive drilldown reporting facility, you can use any key figures to describe your report.

The data can be analyzed in the Logistics Information System using both standrd and flexible analyses. Standard analyses are based on statistics files, or information structures, in the LIS to which important key figures are updated directly from the relevant application. Flexible analyses can be used to evaluate SAP data structures and form the basis for ad-hoc analyses.

The Report Painter performs a similar function to the Report Writer but is much easier to use. To create reports with the Report Painter, you do not need to be familiar with the set concept of the Report Writer. The Report Painter is based on the WYSIWYG (What You See Is What You Get) principle. The Report Painter uses a graphical report structure that forms the basis of your report definition and displays the rows and columns of the report as they will appear when the report is compiled.The Report Painter represents the interface between the user and Report Writer. Reports created in the Painter are converted and executed by the system in the Report Writer.

Each Report Writer report is based on a reporting table. With Overhead Cost Controlling reports, this is the table CCSS. The logical reporting table can include one or more physical database tables.The reporting table contains all of the fields that can be used to compile a report. Characteristics are non-numeric fields. Examples of characteristics include "accounts", "cost centers", and "business areas". Basic key figures are numeric value fields, such as "local currency", "total cost", and "activity quantity".

A key figure comprises a basic key figure and one or more characteristics. You can use key figures to define standard columns, which you can then re-use in your reports. Examples of key figures include "actual costs in the current fiscal year" and "planned costs in the closed fiscal year".A library is a collection of characteristics, basic key figures, and key figures that were selected from the entries in a Report Writer table. SAP ships a wide variety of standard libraries. You can also create your own libraries to satisfy your reporting requirements.

Every new report must be created for a library. Before a report can be run, it must be included in a report group. A report group can contain one or more reports. When a report group is generated, executable ABAP programs are created to select and format the data. 


Every report is assigned to a library. A library is a collection of characteristics, basic key figures, and key figures that were selected from the entries in a Report Writer table.A characteristic is a non-numeric field. Examples of characteristics include "accounts", "cost centers", and "business areas".

A basic key figure is a numeric value field. Examples of key figures include "local currency", "total cost", and "activity quantity".A key figure comprises a basic key figure and one or more characteristics. You can use key figures to define standard columns, which you can then re-use in your reports. Examples of key figures include "actual costs in the current fiscal year" and "planned costs in the closed fiscal year".

SAP Controlling Sechedule Manager

The Schedule Manager simplifies the period-end closing process. The Schedule Manager is a cross application tool for functions that are performed periodically. The Schedule Manager provides the following basic functions: 

Definition and scheduling of the processing steps
ŸMonitoring jobs and checking the results
ŸEfficient error rectification
The Schedule Manager can also be used independently of the Product Cost by Period and Product Cost by Order components.The scheduler enables you to schedule your tasks in a tree structure and have them executed at a particular time by dragging them into a daily overview.The flow definition links the single functions together. You can schedule a flow definition as a task in the scheduler. SAP supplies standard flow definitions that you can adapt to meet your particular requirements.

The job monitor enables you to monitor the scheduled tasks during and after processing.The multilevel worklist is available for: Product cost collectors, production orders, process orders, cost object hierarchies, general cost objects , internal orders, and WBS elements. The selection scope is determined only once and applies to all processing steps. The worklist includes all objects in the selection scope for which processing in  the current processing step is both allowed and necessary. The selection scope therefore corresponds to the maximum scope of the worklist. Restrictions on the selection scope can be specified for individual processing steps. These restrictions are normally specified in the selection profiles that are defined  when the report variant is created.

The processing steps are executed in the sequence specified in the flow definition in the scheduler.  processing status is shown in the worklist for each object and processing step. The processing status indicates whether the object can be processed in the next processing step. A given processing step contains only the objects that can be processed in that step based on the processing status of the previous step. Dependencies between objects are interpreted as user-specific for each processing step. For example, in order to process a given object in a given step, the system may have to process additional objects. The system automatically takes such dependencies into account. You do not have to make any additional settings.

Advantages of Sechedule manager

The multilevel worklist reduces the time required to process sequences of processing steps

 Manual interaction after completion of a job is not necessary. This interaction now takes place after execution of a sequence of processing steps that comprises multiple jobs.

With the multilevel worklist, processing steps are only repeated for the objects that actually had errors.Ÿ CPU time is reduced because objects are selected only once for an entire processing step sequence rather than for each processing step. The objects are selected before the first processing step is performed. Performance is particularly improved with complex structures that involve dependencies between objects .

Job scheduling and monitoring is usually the responsibility of the data processing department.However, the data processing department is not necessarily responsible for correcting the errors listed in the error logs. The multilevel worklist enables you to directly notify the employees responsible for correcting the faulty objects. This notification is made in mails that are sent automatically on the basis of the workflow.

Task List

In the task list, you define the arrangement of tasks that are performed in each period and possibly by multiple users. You can define programs for periodic background processin g or programs for online processing.You can attach Microsoft Office documents that are required for processing a particular task directly to the task. You can also create simple texts as documentation for a task.The daily overview shows the upcoming and completed tasks of the day. From the daily overview, you can access detailed information on a task. 

With the Schedule Manager, you can create a structured view of the tasks to be performed. The tasks can be performed by period and by more than one user. You can use a number of different task types in the task list: 

  1. Background job chains (= flow definition)
  2. Individual background jobs (= program with variant)
  3. ŸOnline programs and transactions
  4. Notes as placeholders to describe a task that is not processed in the SAP System.

The flow definition consists of individual flow steps. These steps include scheduling programs with variants as jobs in the SAP System, and user interactions that send users information in mails.User-specific requirements regarding the interface of the flow definition can be realized with workflow profiles. If required, such profiles can be created and supplied with the support of the project team. To enable individual processes to be available as flow steps, a report program is required that feeds the processing parameters and has an ergonomic interface. 

Job Monitor

The job monitor provides you with all information on an active or finished job that was planned in the scheduler. To determine the status of currently running jobs, you can repeat the database selection. If you only want to see jobs of a certain status, you can hide all other jobs. The monitor is divided into three areas:

ŸStructure tree: The selection area shows you the workflows arranged in chronological order and the jobs that were run within a particular time period. You receive information on the status of the jobs, the runtime, and the update level. For detailed information on a job, double -click on the desired entry in the structure tree. Use the right mouse key to see the different functions that are available for this job, such as restarting a report program or accessing the monitor for the multilevel worklist.

ŸDetail view of a job: In the overview area, you can double -click on a job to display more detailed information: Spool list (display of batch spool list(s)), job log ,extract
Message list: If messages were issued for a job and saved, the system displays them in the detail area.

Work List Monitor

You can view the processed objects in the monitor of the worklists. The system indicates the processing status for each object and processing step.

The object list and the message list provide you with the necessary information on any errors that occurred during processing. You can: 

  1. Analyze the errors
  2. Correct the errors
  3. ŸSet a manual processing status that tells the system that the error is negligible and the object can continue to be processed.
  4. ŸSet a manual processing status that tells the system that objects processed without errors should nevertheless be processed again .
Once you have processed all objects in the monitor, you start the processing again. Only the objects that had errors  are processed.

The Schedule Manager simplifies the period-end closing process.The multilevel worklist of the Schedule  Manager enables efficient error analysis.The multilevel worklist significantly improves performance in the period-end closing process. Flow definitions are a prerequisite for the use of the multilevel worklist.

SAP Controlling Order Summarization

For efficient management accounting, you often need to group orders with similar characteristics and analyze them together. You can use the summarization characteristics to create totals records. You can run  summarization reports against these values for report run times that are shorter than with the use of totals records from the selected orders. If you have a large numbers of orders you need to use order  summarization.You can specify the structure of your analysis by defining a hierarchy. Each level of the hierarchy is represented by a characteristic. Note that the controlling area is always the first level of the hierarchy.You can summarize both costs  like planned costs, actual costs, variances, results analysis data and quantities  like input and output quantities.The definition of a summarization hierarchy determines which fields are used in summarization and which objects are summarized.The levels of the summarization hierarchy are created by means of master data fields. The available master data fields are predetermined.

Orders Master data layout

The master data fields are distributed over nine predefined group boxes. You can display or hide the fields in the group boxes as previously and set them as ‚Required‘ or ‚Optional‘ entry fields.You can create your own fields in the master data. The R/3 System supports all field functions for these user-defined fields, except list versions.These user-defined fields allow you as of Release 4.5 to run order summarization directly through the order master data without classifying the orders. SAP also provides a converter program, which supports a change from order classification with free characteristics to user-defined master data fields.

During summarization, the system selects the orders for each level of the hierarchy  in accordance with the specified characteristics. It then computes a total for the orders that are located below that level. The total values are written for each hierarchy group to a summarization object. You can schedule a background  process for the summarization run or use parallel processing, if you have a large amount of orders in your hierarchy.The information system includes special reports for internal order summarization objects.You can use the summarization report to navigate between all orders, in all order types, for all company codes in one given controlling area. On a selected level you can also display its data in a different way, by using another report.If an order is created and posted after the summarization run has taken place, the hierarchy does not display the order. This means you need to run the summarization again.

To summarize orders using characteristics, you create a summarization hierarchy and start a summarization run that collects the order values according to their hierarchies.The information system for orders includes special reports for summarization objects.

Planning and Budgeting in SAP Controlling

Planning and controlling a vital role in any business and SAP has provided a systematic approach in making it so that business can prosper.During order planning, you enter costs, activities and business processes which you expect to incur during the life cycle of an order. With order planning, you can compare plan and actual costs, and carry out differentiated variance analysis.You administrate the approved cost framework for an order or an order group using Budget Management. The budget is the approved cost structure for an order and differs from the cost plan in that it is binding. Management uses me budget to approve expected costs for an order over a given time frame.You can enter the order budget manually or copy budget information from any plan version.

Cost planning is performed mostly on orders with long durations. Orders which only exist for a very short period, such as orders for unexpected small repairs, are not usually planned.Internal order planning provides three different levels of cost planning: 

Overall Planning is the simplest way of planning costs for orders. You do not need the cost element to estimate overall and annual values for an order.ŸWhen more detailed information is available for an internal order, you can use primary and secondary cost and revenue planning, which covers the planning of primary costs, activity inputs and revenues in manual planning. In automatic planning, you can charge the order with overheads, distribution costs, periodic reposting costs, assessment costs, indirect activity allocation costs, process costs, and settlement costs. If the order is a plan-integrated order, you perform a plan credit using periodic reposting or settlement.Ÿ If you have access to more information on sources of supply, quantities and prices, you can perform unit costing. With unit costing you can plan on a level below the cost element level. You can plan statistical key figures as a basis for automatic allocation of your orders.

Overall Value Planning

Overall planning is the most basic form of order planning, in which you create a plan by estimating the costs likely to be incurred for an order. In addition to detailed, planning based on cost elements as in Cost Center Accounting, you can save rough overall planning values for internal orders per fiscal year separately from the cost elements. You maintain these values parallel to the values from cost element planning and unit costing.

You can plan either overall values or values for individual years. For overall planning, you need to define a planning profile and store it in the order type. From the overall planning screen, you can call up primary cost planning, unit costing, revenue planning, and activity input planning. In addition to the overall values column, you can choose to display a second column.The total planned values is the sum of all the cost planning forms used (overall, cost and revenue element, unit costing, and activity input planning). In this column, you can also display views for cost element planning and unit costing.

Planning Profile

For planning, you need to define a planning profile and save it in the order type. Of course, you can use the standard SAP profiles as well. Within the profile, you also define the time frame and whether you want to plan on a yearly or overall basis.Note that in planning, you can only take into account cost elements, cost centers, activities and statistical key figures that are organized in groups and that are fixed in the planning requirements.For quantity based cost planning you need to define and assign a ‘costing variant’ (CO-PC). The costing variant will be the interface to bill of material , material master data and routine.Though you need for planning on this level.Before you create a planning profile you need to define a planning version.

Integrated Planning Settings

You can plan your internal orders in multiple versions .When you create a controlling area, the R/3 System automatically creates version 000, which is valid for five fiscal years. Additionally, you can create alternative versions for best-case and worst-case scenarios. You can use the copy planning function to create these additional versions.The R/3 System always uses version 000 when referencing actual postings. Alternative versions allow only plan data storage for internal orders, or the storage of parallel valuations if you use Transfer Prices.For plan integration, there are two indicators in the version and one in the order type for the order master data:
Integrated planning 
This indicator on the plan version activates integrated planning for Controlling with other applications.If you activate the indicator, every planning change leads to a plan line item. For internal orders, you can allow line items to be written by setting an appropriate user status. Ÿ Planning integrated with CCtr Accounting and ABC (Activity based Costing) To activate integrated planning for internal orders with Cost Center Accounting or Activity- Based Costing, you need to set the indicator in the plan version. Additionally, you must set the integrated planning indicator in the order type, or directly in the order master data.

n Within the framework of integrated planning for internal orders , you can integrate the cost element and activity input planning for an internal order plan version with cost center- or business process planning. All the planned business allocations on the internal order are then automatically updated on the sender/receiver cost center or business process.You can only use integrated planning for internal orders when the internal order already exists at the time of cost center planning. You can use integrated planning for long term orders. Ÿ If you plan activity inputs to an integrated planning order, the scheduled activity is updated to the cost center providing the activity.During planned settlement of the order, the receiver cost center is debited with the order costs.Ÿ Overhead calculations for integrated orders debit the internal order and credit a cost center. In assessment and distribution the planned costs for a sender cost center are allocated using assessment and distribution. Periodic repostings for integrated orders to cost centers are included.

Non Integrated Planning

All orders created ad hoc, or after completion of the cost center planning, cannot be plan-integrated.You can plan those internal orders locally.When using orders that are not plan-integrated, note the following from the cost center standpoint: 

Ÿ The order shown above is created in the year 1999 after the cost center plan is finished. Therefore,you can only use orders that are not plan-integrated. In actual postings, the order is debited by primary cost postings, periodic allocations, and actual activity allocation, and is credited by settlement to a receiver cost center. To maintain actual and plan similarly, you need to enter a plan on the cost center that receives the settlement via orders. 

To include costs allocated via orders to the receiver cost center from sender cost centers, you can use an order settlement cost element to plan the costs as activity-dependent or activity-independent secondary costs , from the standpoint of the affected cost centers. In the planning, the “scheduled” activity at the sender cost center is updated, so the plan reconciliation can be used to reconcile planned and scheduled activities. Orders that are not plan-integrated can be posted directly in actual with primary costs (such as from FI), and then settled in actual to cost centers. You can include these order costs in the corresponding receiver cost centers by planning primary costs using an order settlement cost element.To include plan overhead on cost centers, you must plan it manually to the cost centers. You plan a  credit to the sender cost center for the overhead cost element and a debit to the receiver cost center for the settlement cost element.

Budget Management

The system recognizes the following budget types: 

 The original budget is the budget originally allocated.Ÿ Budget updates for orders include supplements and returns and are used when unforeseen events and additional requirements force a correction to the original budget.Ÿ The current budget includes the original budget and all budget updates.In addition to the budget update functions, you can make changes to the original budget. You can freeze the original budget using status management. You accomplish this by creating a user status prohibits the Budgeting business transaction, but does allow supplements and returns.When you create or update your budget, the system documents the transaction in a line item. You can display the budget line items from the budget screen. You can enter text for budget line items to provide supporting information for the budget transaction.

To create a budget for an order, you must define a budget profile and assign it to the order type. The budget profile defines the parameters for budgeting. In Customizing, you must define a number range for your budget documents. Number range 04 is  provided for the assignment of a number range to order budgeting.When you save the budget, the system checks that the sum of the annual values matches the overall value for the order.

Using Different currencies

Multinational business locations may require you to perform budgeting in different currencies. From Release 4.0, you can choose different currencies to enter your budget. All budget items are converted and saved automatically in the controlling area currency and the object currency.If you choose budgeting in the controlling area currency, all budget items are entered in the controlling area currency.

If you choose budgeting in the object currency, you can enter the budget in this currency for each object. The object currency is stored in the master record of the object.When budgeting in a freely-definable currency, you can choose the currency in which each budgeting transaction should be entered.In the budget profile of the order type or the project profile, you should specify the currency in which the budget items for the order or the project can be entered.Nevertheless, you perform availability control and all other budgeting checks exclusively in the controlling area currency.

Availability Control

As an order is executed, business events are recorded which call upon the available funds. These events result in the posting of actual costs and commitments to the order. Commitments represent obligations that will lead to actual costs through subsequent business events. A purchase order, for example, may result in a CO commitment. Actual costs and commitments are types of funds commitments. Funds commitments for an order are checked against the budget by availability control.In Customizing, you define how availability control will operate for your order types: 

  1. Is availability control active?
  2. For which transactions will availability control apply?
  3. What are the tolerance limits?
  4. ŸWhat action will be initiated when tolerance limits are exceeded?
  5. Should certain types of costs be exempted from availability control?
You use tolerances to define how the system should respond to a given degree of budget overrun. In our example, when the budget is nearly consumed (95%), a warning is issued with an automatic mail message to the person responsible. With a budget overrun of five percent (105%), the R/3 System issues an error message, and the document that caused the overrun cannot be posted. Tolerances are established for a budget profile by activity groups , allowing you to set different tolerances for different types of transactions.

When you select the Warning with Mail action, you must specify a budget manager in Customizing.If no budget manager is entered, the system generates an error message. A budget manager may be established for each order type and object class. If more than one budget manager is defined for an order type and class, a mail will be sent to each individual. For example, in the above illustration, the user Peter Miller will receive a mail for any exception for order type 0100, object class OCOST.

Profile for budgeting

To create a budget for an order, you must define a budget profile and assign it to the order type. The budget profile defines the parameters for budgeting. In Customizing, you must define a number range for your budget documents. Number range 04 is provided for the assignment of a number range to order budgeting.In the profile, you can specify whether the availability check cannot be activated, is activated manually via a function in the component menu, or is activated automatically during budgeting. You can check funds availability using either the annual or overall budgeted value.

You can transfer unused funds to the next fiscal year using the budget carryforward function. The SAP R/3 System will carry forward the difference between the budget and actual amounts for the year specified.You cannot carry forward budgets for orders that have a system status of Complete or that are flagged for deletion, nor can you carry forward negative budget amounts.You can process the carry forward run more than once for a fiscal year. Each execution of the program carries forward budget not previously processed. You can also return funds to the “old” fiscal year, up to the amount of budget actually carried forward.

To execute the carry forward program, you enter the fiscal year of the budget to be carried forward and a selection variant which specifies the orders to be included. You must maintain the selection variant in Customizing.Commitments are not considered in the calculation of the unused funds. Therefore, you should carry forward your commitments before carrying forward the budget.

With overall value planning for orders, you can enter annual or overall plan values separately from the cost element values.When more detailed information is available you can use cost element/activity input planning, or unit costing. You can also plan overhead for an order.

You activate the integration of internal orders with cost centers and business processes in the version, and also in the order type or the order master data.If the order is plan-integrated, you can plan distribution, assessment, and settlement of the order to cost centers.

Non-integrated orders can only be planned in isolation with costs and activities. To include these orders in cost center planning, you can simulate an integration by using order settlement cost elements and overhead cost elements in manual cost center planning.