Examples of alternative units of measure include order unit (purchasing), sales unit, and unit of issue. This is a unit of measure defined in addition to the base unit of measure. You create an alternative hierarchy by creating cost center groups. While there can only be one cost center standard hierarchy, you can create as many alternative hierarchies as you like. The alternative BOM allows you to identify one BOM in a BOM group. There can be multiple methods of manufacturing an assembly, and many possible bills of materials (BOMs). An assignment maps a source cost element group to a settlement general ledger account. Allocation StructureĪn allocation structure allocates the costs incurred for a sender by cost element or cost element group, and it is used for settlement and assessment. Actual CostsĪctual costs debit a product cost collector or manufacturing order during business transactions, for example, general ledger account postings, inventory goods movements, internal activity allocations, and overhead calculation. Variances can be rolled up over multiple production levels and company codes to the finished product. All purchasing and manufacturing difference postings are allocated upward through the BOM to assemblies and finished goods. Actual CostingĪctual costing determines what portion of the variance is debited to the next-highest level using material consumption. Just as cost centers can provide planned output services based on activity quantities with Transaction KP26, you can plan cost center activity input quantities from other cost centers with activity input planning using Transaction KP06. Assigning PPV to the Purchasing cost center is just one of many examples of assigning responsibility and providing advanced reporting and analysis with standard reports. Responsibility based reporting is one of the most important standard tools available with SAP S/4HANA. By double-clicking any line shown in Figure 3, you can drill down and analyze the transaction that caused the PPV posting. You can sort the Val.in RC (value in reporting currency) column to highlight the largest PPV postings. Double-click a PPV cost element in Figure 2 and press to display a line item report of individual postings to this account as shown in Figure 3.įigure 3: Cost Center Actual Line Items Report You can assign PPV postings to separate Favorable and Unfavorable accounts with Transaction OBYC to gain more transparency of PPV postings. You vew the standard actual/plan cost center report with Transaction S_ALR_87013611 or via menu path:Įnter the selection screen information and click the execute icon to display the screen shown in Figure 2.įigure 2: Cost Center Report Results Screen To enter a different default cost center per plant select the cost element in Figure 1 and double-click the Detail per business area/valuation area text on the left. To assign a default cost center to the PPV account, click the New Entries button and enter the company code, cost element, and cost center, and Save. You see a list of existing cost center assignments to cost elements, which in SAP S/4HANA are general ledger accounts. The screen shown in Figure 1 is displayed.įigure 1: SAP Default Account Assignment Configuration You assign the purchasing cost center as the default for PPV with Transaction OKB9 or via IMG menu path: You can easily analyze PPV postings by nominating the purchasing cost center to receive PPV postings and then run a standard cost center report. You post purchase price variance (PPV) during goods and invoice receipts if the actual purchase price is different from standard. You use it to measure Purchasing performance and have Purchasing explain an increase in unfavorable PPV postings. Purchasing info records store vendor quotations per material and estimate your plan purchase price. You typically obtain the SAP standard price for purchased materials from purchasing info records during a costing run. Post SAP Purchase Price Variance PPV to Purchasing By John Jordan
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