Q&A: Improve Productivity of Your SAP Controlling Implementation

This presentation with Ashish Sampat, Expert Fixer and FI/CO Consultant, will cover:

• Evaluate the Right Cost Object to use in your company

• Discover how you can use a separate GR/IR account for Intercompany transactions

• Learn how to automate WIP, Variance, Settlement transactions

• Find out how to capture a Trading Partner on relevant transactions

• Utilize the Material Status field in reporting and analysis

Watch the prerecorded webcast by pressing play:

GET ANSWERS TO THE FOLLOWING QUESTIONS AND MANY MORE by watching the webcast video above.

Q&A questions answered by Ashish Sampat.

Q: We already use Process Orders in our current SAP system. We have acquired a business unit that is on another SAP system, but they use Production Orders. We now want to migrate them on our SAP platform. We are wondering if there is any value in have this new business unit switch to Process Orders when they move to our system?

Q: Is it possible to setup separate GR/IR Account for each type of material – say Raw, Packaging, Supplies, Semi-Finished, Finished Materials?

Q: We are planning to implement separate GR/IR for Intercompany. However, we do not know how to handle historical transactions that are open at the time of go-live. Do you have any suggestions on how to handle them?

Q: Our company has struggled with the performance of WIP, Variance and Settlement jobs – sometimes they take 3-4 hours to complete, thereby delaying our close at times. Apart from running these resource-intensive jobs at off-peak times, what other suggestions do you have to overcome this issue?

Q: We do want to see Trading Partner captured on Intercompany Transactions and want to activate the user exit. However, we do not know what will happen to clearing of earlier transactions. Is there a way we can incorporate a date logic?

Q: Material Status sounds like a useful functionality, but is it correct to state that it is more of a cross-functional feature than merely a Controlling feature?

Q: The Order Settlement jobs can sometimes take a long time, are there any tips to reduce the run-times?

Q: In table t030 how do you map from a MM Movement Type to the MM Transaction/ Account Modifier?

Q: Are these features are still valid and applicable in S/4HANA? 

Q: Is there anything particular in S_ALR_87013127 that use to identify orders that missed closing?

Q: It is hard to read the table of transactions on slide number 7 (cost object: transaction codes).  How can I obtain a copy of the table?

A:

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Amsterdam Financials 2017

ERPfixers is honored to announce that Paul Ovigele, Founder of ERPfixers, will present at the Financials 2017 Conference. The definitive conference for organizations using SAP solutions for finance to drive accounting, controlling, planning, and reporting excellence. Join us!

 

Our Session(s):

Tackle your most common financial pain points using existing and new SAP functionality

Wednesday, 14 June, 2017 16:30 - 17:30 G102

Speaker: Paul Ovigele, ERPfixers Founder

Learn the how-tos, gotchas, and workarounds you need to know to conquer the most common challenges associated with financial and managerial accounting, including the reconciliation of CO-PA with SAP General Ledger, and using cost component split functionality. Get expert advice to:

- Deal with the timing difference of goods issues between FI and CO-PA

- Learn the changes to CO-PA with SAP S/4HANA Finance

- Ensure that credit and debit memos, which relate to price alone, do not update the Cost of Goods Sold (COGS) value field in CO-PA

- Handle the posting of discount conditions to CO-PA

- Configure the cost component split using SAP S/4HANA Finance

- View cost of sales postings in the SAP General Ledger by cost component

Ask the Experts FIN and GRC

Wednesday, 14 June, 2017 17:45 - 18:30 Exhibition Hall

Speaker: Paul Ovigele, ERPfixers Founder

Sit down with leading experts who manage, deploy, and support SAP environments to get detailed answers to your toughest questions. Draw on the real-world experiences from some of the industry’s top technologists and tap into one-on-one time with experts and walk away with detailed answers to the questions that matter to you most.

SAP Material Ledger: Guidelines and Benefits

Thursday, 15 June, 2017 10:45 - 11:45 G105

Speaker: Paul Ovigele, ERPfixers Founder

Take a comprehensive look at material ledger, including what it does, when you should use it, and how to interpret its results. Delegates will:

- Discover how to properly analyse material ledger information using the Material Price Analysis report

- Find out how long the typical material ledger implementation should take

- Hear how certain companies have used material ledger to solve their transfer pricing and intercompany elimination requirements using standard SAP functionality

- Walk away with a clear understanding of how material ledger fits in with SAP S/4HANA Finance functionality

TWEET us at #Financials2017!

@ERPfixers #ERPFixers

Q&A: Are you Optimally Utilizing Available Functionality within SAP Controlling?

Get answers to these questions:

• Which cost allocation method is better - Distribution or Assessment, when should I use one versus another?

• What are the different standard costing methods that are available for use, and under what circumstances should they be used?

• How does one go about correcting various error/ warning messages encountered during costing?

• What are the different cost objects that are available for use in SAP controlling?

• Under what circumstances should I go about automating WIP, Variance and Settlement jobs?

Watch the webcast by pressing play:

PP-REM and Cost Control

Repetitive production is a special type of production that can be used in integrated production scenarios or for a specific situation. This article explains some uses and configurations regarding PP-REM.

For a long time, industries have been using PP-REM to obtain a continuous flow of production. PP-REM is highly recommended for production because it provides product stability and low complexity. This type of production is well used in automobile industries, but it can also be employed in other industry types, such as for wires and nails manufacturing.

The main goal is to reduce the cost control and simplify the completion confirmation via back-flushing process.

SAP provides a PP-REM area by means of OPP3 transaction – please check information on PP-REM configuration here. 

There are only four requirements for PP-REM implementation:

• REM Profile (OSPT / OSP2)

• Material Master Configuration ( MM01 / MM02)

• Production Version (C223 / MM02)

• Product Cost Collector ( KKF6N / KKF6M - Collective)

The main question regarding CO is the Cost Collector (KKF6N), which will allow the material to be continuously settled without a specific production order. However, before initiating the cost collector, we need to follow preceding steps:  

1. Create a BOM and a Routing (rate routing)

2. Define the standard cost estimate for current date and period (CK11N)

3. Release this standard cost estimate (CK24)

Here, there is a crucial point of discussion: WIP. Normally, it is possible to avoid WIP when using PP-REM, but this is linked to the routing configuration. If this is configured with Report Point and with a different point of confirmation (report pointing) until the final confirmation, WIP will be possible [KKAT / KKAQ – WIP Display & KKAS / KKAO – WIP Calculation]. The reason lays between one point and another, since the process will generate more work – of course, these points must be aligned with the production and there is no impact in the Cost Collector configuration (but the production manager must ensure the correct production confirmation).

Another important factor is regarding COGI. We have noticed the same problems with no row material available when confirming the Production Order, rather than with PP-DIS. It is possible to avoid COGI via SAP configuration. COGI is a big problem and we know that it must be “zero” by end of the day.

There are many reports to use in PP-REM, for instance to track the confirmation point by point using the report MF26. There are other reports as well, such as product costs [MCRK], product cost collection [KKBC_PKO], preliminary costing for cost collector [MF30] and so on.

The production confirmation occurs through the specific PP transaction (MFBF), where there are some additional functionalities, such as reversal, scrap, change of row materials used, etc.

PP-REM uses the movement type 131 to confirm production order, which differs from PP-DIS SAP that uses the movement type 101. Like this, the material movement presents different account information.

After confirming, is possible to analyze variances [KKS5 Collective / KKS6 Individual – the variances calculated with the version 0 will be evaluated to COPA.

At end of the month, it is critical to execute the order settlement [CO88 / KK87]. In this stage, the order balance can be balanced transferring the differences to FI and to the Profit Center Accounting. Additionally, it is possible to verify the contribution margin in COPA.

Below we can see some important tables behind PP-REM:

• Cost collector [AUFK]

• Reporting point quantities [CPZP]

• Reporting point documents [CEZP]

• Document log [BLPP]

PP-REM offers an easy way to integrate CO and Production and should be considered whenever possible mainly to scenarios with low complexity but keeping the information and responsibilities that you can see in other scenarios.