WALK AWAY FROM THIS SESSION WITH AN UNDERSTANDING OF S/4HANA: COSTING FOR MANUFACTURING ORDERS
S/4HANA has made some revolutionary changes in the areas of Financial Accounting and Controlling. With new functionality in Account Based Profitability Analysis, Material Ledger, Fixed Asset Accounting and the General Ledger, there had been minimal information about the changes to the Product Costing module. From the S/4HANA 1809 release, SAP made several improvements to Product Costing in the GUI and Fiori, introduced some new fields and integrated the Target and Actual Costing data with the Universal Journal. Hear from Marjorie Wright, SAP Controlling Expert and Author, who will take you through the following:
Planned Costing
Production versions
Plan categories
Analysis : GUI vs Fiori
Target/Actual Costing
Universal journal updates
Analysis : GUI vs Fiori
Speaker: Marjorie Wright
Watch the pre-recorded webcast:
Q&A from the Webcast:
Q: Does this mean target cost versions are no longer required?
A: No, it does not. We still need target cost versions (OKV6) for periodic variance calculations.
Q: In the two Fiori apps, I don't see the categories in the selection drop down- why not?
A: Often the reason for this is an easy fix- if there is no description for the category, there is nothing to display in the drop down. In one of my practice systems this same thing happened. Review the category descriptions in “Maintain category for planning”.
Q: Where can I find the "on the fly target" calculation method details?
A: There are a few SAP edition specific notes that explain this: 2618359, 2661581, 2807519, and 2944185.
Q: What are the main differences between production orders and process orders and what are the main differences between production orders and process orders?
A: From a technical view, these two order types have a different “category”. Think of the category as determining the kind of master data that can be accessed by the order. From a business process view, production orders use production versions, boms, routings, and work centers/operation while process orders use production versions, recipes, and phases that have subordinate operations. The master data is similar but supports discreet manufacturing where operations are costed (production) and industries such as chemicals and pharma where materials are mixed in specific order with the phase being costed (process).
Q: Have you seem a CO production order instead of a PP production order?
A: Yes, I have! Generally, when the production planning process is executed outside of SAP, this type of order is used. All of the master data (bom, routing, etc) exists in the non-SAP system but we need to accumulate cost on a cost object in SAP. 7.
Q: Do you recommend any SAP training courses for more learning?
A: I recommend staying in contact with ERP Fixers for current webinars and blogs; follow Espresso Tutorials for frequent (free!) virtual conferences, and also connect with John Jordan’s Controlling conferences – all three are my best resources for knowledge.
Q: If we are using a power app for production planning, would you expect an interface to SAP-PP for standard costing and accounting to complete the GR’s etc. to facilitate financial reporting?
A: I think you have three options: 1) utilize a CO order in the SAP system to collect production cost transactions via interface, leaving the PP master data in the source system 2) create the source master data in SAP and use production/process order transactions via interface and 3) Central Finance may be a good option here.
Q: Does SAP provide production/process order variance by cost component rather than standard?
A: With Material Ledger 3, yes. The details by cost component are available for variances. Without Material Ledger 3, no as we have only variances by the eight categories – which are not quite the same as cost components.