The R&D department of your company improves the Speedstarlett. Create an overhead order to enter the costs incurred in product development. The costs are posted per posting period to cost center 4500 (R&D). Your manufacturing cost center will produce the prototype in this context and will be the responsible cost center.
Figure 51: Process overview: Internal orders
2.6.1 Create internal order
Use the Order Manager to create the internal order. Therefore, choose
Accounting Controlling Internal Orders Master Data Order Manager (KO04)
1. If requested, enter controlling area 1000.
2. Choose create .
3. Enter order type 0100 (internal order - development) and choose Enter. Enter the Description text product development costs group xyy.
4. On the assignments tab, enter the following data:
a. Business area 9900
b. Profit center PROFITxyy
c. Responsible CCtr. CC-MF-xyy
5. Go to the control data tab page. Release the order ( ). The system status should change to released (REL).
6. Define a settlement rule for periodic settlement to allocate 100% of the actual costs to the R&D cost center.
7. Confirm with Enter and go back to the previous step. Save the order.
8. List the order number on your data sheet.
Internal order: ________________________________________________________
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2.6.2 Commitment management
Personnel working in product development focus especially on improving the gearing. To determine whether improvements are possible, the department wants to purchase some gearings (gearing-xyy). Create an internal order and check the posted commitment.
Choose
Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known (ME21N)
1. In the order header, enter the subsequent data:
a. vendor your vendor number
b. purchasing organization 1000 c. purchasing group 000
2. In the item overview area, enter the following information:
a. Account asset category (A) F maintained for the vendor in the procurement process case study. Correspondingly, you will get a quantity discount at 500 order units. Choose Enter.
4. The system issues a warning: “Account 410000 requires account assignment that is relevant to cost accounting“ and goes automatically to the account assignment tab.
5. In the order field, enter your internal order number and choose Enter.
6. Confirm the next two messages regarding the quantity discount and the delivery date with Enter and save the delivery order.
7. Skip possible notifications with save.
8. List the number of the standard purchase order.
Standard purchase order: _______________________________________________
1. Enter the following information:
a. Controlling area 1000
b. Fiscal year current fiscal year c. From period current period
d. To period current period
e. Plan version 0
f. In the first field or value(s), enter your internal order number.
Choose execute.
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2. You can see that the corresponding order value is listed for your order in the commitment column for cost element 410000 (the consumption account for OEM products).
Figure 52: Report for internal order/commitment: SAP system screenshot
2.6.3 Goods receipt for an order
The vendor was very quick and delivered the gearings. Post the goods receipt for the order.
Choose
Logistics Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order PO Number Known (MIGO)
1. Select the operation goods receipt and the purchase order reference from the corresponding drop-down fields.
2. Make sure that movement type 101 was selected.
3. Enter the order number for your gearings and choose Enter.
4. Select position OK and enter * into the delivery note field.
5. Click the post button.
6. List the material document number.
Material document gearing: _________________________________________
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2.6.4 Direct activity allocation
The manufacturing department worked 100 hours for the construction order. This expense is supposed to be allocated to the internal order as cost bearer like the material order before. To carry out a direct activity allocation, choose
Accounting Controlling Cost Center Accounting Actual Postings Activity Allocation Enter (KB21N)
1. Enter controlling area 1000, if you have to.
2. Select screen variant (Scrn var.) order.
3. Enter the following data:
a. Document date current date
g. Rec.order your order number
h. Total quantity 100
4. Confirm with Enter and save the document.
5. List the document number on your data sheet.
Activity allocation manufacturing: ________________________________________
2.6.5 Expense posting for manufacturing and maintenance
As described in the note in chapter 2.4.9.3, you have to post the corresponding expense for an activity output to the cost centers.
At this point, you will post the 100 hours (manufacturing) as well as the 200 hours (maintenance) from the direct activity allocation in a document. The employees of both departments receive an hourly rate of 15 € (manufacturing: 600.000 € for 20 employees that work 2000 hours each). The automatically determined price from planning is 18,45 € for manufacturing, however, this price considered the allocation of cafeteria costs as well. Thus, the employees let their orderers (account assignment objects: sales orders, production orders, etc.) pay for their food. Choose
Accounting Financial Accounting General Ledger Posting Enter G/L Document (FB50)
1. If necessary, enter controlling area 1000.
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Dipl.-Wirt.-Inf. Taymaz Khatami 2. Enter the following data:
a. Document date current date
b. Posting date current date
c. G/L account 420000
d. D/C debit
e. Amount in doc. curr. 1500
f. Cost center CC-MF-xyy
g. G/L account (second row) 430000
h. D/C debit
i. Amount in document currency 3000
j. Cost center CC-MT-xyy
k. G/L account (third row) 113100
l. D/C credit
m. Amount in document currency 4500
Note: In case you receive a message, select the third row and choose from the bottom of the screen. Enter the current date into the due on field. Choose . Save the document again.
3. Save the document and list its number.
Document number (Expense posting): _________________________________________
Figure 53: Expense posting maintenance and manufacturing: SAP system screenshot
2.6.6 Cost reports
Next, check the effects of the commitment posting (goods receipt) and of the direct activity allocation on your internal order. Choose
Accounting Controlling Internal Orders Information System Reports for Internal Orders Plan/Actual Comparisons Additional Key Figures Orders:
Actual/Plan/Commitment (S_ALR_87012999)
page 65 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/
Dipl.-Wirt.-Inf. Taymaz Khatami 1. Enter the following data:
a. Controlling area 1000
b. Fiscal year current fiscal year c. From period current period
d. To period current period
e. Plan version 0
Enter your internal order number into the or value(s) field.
Choose execute.
You can see that for your order, there is a zero listed in the commitment column and the corresponding costs were posted to the actual column. Moreover, there is a new row in which the costs from the manufacturing department were posted.
Take a look at the planned/actual cost comparison of your cost center group Group-xyy again.
Choose
Accounting Controlling Cost Center Accounting Information System Reports for Cost Center Accounting Plan/Actual Comparisons Cost Centers: Actual/Plan/Variance (S_ALR_87013611)
1. Enter the following data:
a. Controlling area 1000
b. Fiscal year current fiscal year c. From period current period
d. To period current period
e. Plan version 0
f. Cost center group Group-xyy 2. Choose execute.
You can see that additional 4500 € were debited to the cost center and 5445€ were credited. If both cost center manage to perform the planned activities of 3333.33 and 833.33 hours, respectively (see figure below), they would really deserve the food (allocation KS-KA-xyy).
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Figure 54: Plan/actual comparison cost center accounting: SAP system screenshot
2.6.7 Excurse
At this point, you can find another brief customizing excurse, since allocation cost element MFT-xyy will take a special role in settling the internal.
Go to:
IMG Controlling Product Cost Controlling Cost Object Accounting Product Cost by Order Period-End Closing Settlement Create Allocation Structure
Select allocation structure A1 and double-click the assignments folder in the left window.
Select the line with the entry 025 (allocation) and double-click on the source folder in the left window. You can see that the cost element group OAS_ORDERS is listed for the allocation structure A1 and the assignment 025.
Note:
During settlement, costs incurred under the primary and secondary cost elements by a sender are allocated to one or more receivers. An allocation structure comprises one or several settlement assignments. An assignment shows which costs (origin: cost element groups from debit cost elements) are to be settled to which receiver type (for example, cost center, order, and so on). Allocation structure A1 will be relevant later in this case study.
Go back to the SAP easy access menu and call up
SAP menu Accounting Controlling Cost Element Accounting Master Data Cost Element Group Change (KAH2)
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1. Firstly, check whether your controlling area (1000) is set (Extras Set Controlling Area).
2. Enter the determined cost element group OAS_ORDERS into the cost element group field and confirm with Enter.
3. Select and enter your cost element MFT-xyy into the first row.
4. Save your entries.
Thus, you enter your cost element into the cost element group OAS_ORDERS and as a consequence, you direct the system to post the allocation cost type MFT-xyy to the accounts that were assigned to cost element group OAS_ORDERS in customizing when later allocating the internal order. This step is required to make sure that the costs of the internal order can be transferred to the account assignment object (cost center R/D) in the sense of object accounting.
2.6.8 Completion of the internal order
You completed the actual postings for your internal order. Next, allocate the costs to the R&D cost center, which is responsible for their incurrence. Carry out an actual costs settlement for your internal order. Use the current period as both: settlement and posting period.
Choose
Accounting Controlling Internal Orders Period-End Closing Single Functions
Settlement Individual Processing (KO88) 1. Enter the following information:
a. order number of your internal order b. settlement period current period
c. posting period current period d. fiscal year current fiscal year e. processing type automatical
f. test run deselect
2. Choose execute.
3. Choose the detail lists ( ) button.
4. In the sender column, you can see your order number, in the receiver column, the R&D cost center is listed (4500).
5. Choose the receiver button to display details regarding cost allocation.
Check one last time the effects on your internal order. Choose
Accounting Controlling Internal Orders Information System Reports for Internal Orders Plan/Actual Comparisons Additional Key Figures Orders:
Actual/Plan/Commitment (S_ALR_87012999)
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Dipl.-Wirt.-Inf. Taymaz Khatami 1. Enter the following data:
f. Controlling area 1000
g. Fiscal year current fiscal year h. From period current period
i. To period current period
j. Plan version 0
Enter your internal order number into the or value(s) field.
Choose execute.
2. You can see that the balance is zero in all tables. Thus, the internal order was allocated completely. The R&D cost center bears now the costs.
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