Cost of Carry

Hi!
Anyone have ever created report on Cost of Carry in SAP?
Basically need to report on the rate differential between the investment returns and the commercial paper borrowing costs over a given time period.
If someone has any experience, please share!
Thanks in advance.

Hi,
You may explore creating a report with ABAP query using the new (in ECC) logical databases FTI_TR*.
Manish

Similar Messages

Cost of carrying Inventory

Hello,
My client wants to capture the cost of Stocking, cost of labor and other miscellaneous charges on inventory.
For Example, we have Material which needs to be kept in temperature below room temperature, so for this we need to keep it in refrigerator. Now the cost of Refrigeration and other expenses should be posted on the inventory.
What is the process of loading the cost of carrying the inventory, labour charges and other expenses on inventory.
Regards
Prabhjot Singh Nayyar

Hello,
The cost of refrigeration of a particular material and other expenses which will be spent over taking care of the inventory, cannot be included in the PO.
How can you know what amount you will be spending in next six months for taking care of Inventory at the time of PO creation ?
Regards
Prabhjot SIngh NAyyar

Cost Carrying Over in Drop Ship Processing

Hello Experts...
When doing a drop ship sales order, this is the following situation. Item A has cost at Warehouse 01 (stock warehouse) of $400 and cost at Warehouse 03 (drop ship warehouse) of $425.
When doing a drop ship sales order, the correct cost of $400 from WH 1 is displayed initially until the WH is changed to WH 3, then it displays WH3 cost of $425. However, when the Purchase Order Confirmation Screen is displayed, the cost reverts back to $400. We have done a test 15 times in the Demo SAP B1 and even more information is not passed on using the "Copy To" function (for example, the Delivery does not pick up any costs - it is blank when processing a drop ship).
Of course it could be changed at the Purchase Order Confirmation Screen, BUT a real simple statement comes up of why does a Sales Person have to change it when the cost is in the system and is displaying correctly on the Sales Order. From a common sense perspective of financial matters and productivity, it takes the statement even further - why even put a cost on the Drop Ship Warehouse when the system does not pick it up. It gets even worse when the Gross Profit comes out to being 100%. The whole drop ship process seems to be a mystery in the SAP Documentation.
QUESTION: Is there some setting that needs to be changed so that the correct drop ship cost is carried throughout the system automatically and all of this wasted time is cut out?
The user guide published on Februrary 2009 covering this topic does not say anything about COMPLETE drop ship processing and cuts off at the display of the Purchase Order Confirmation Screen on page 6.
Thanks - Zal

Hello Julie - thanks for your reply...version is 2007 SP01 PL05...
Maybe the problem with the cost being carried over with "Copy To" was corrected in PL07? Will go to the release notes...
This is getting to be a comedy - again, I am using and testing this function on SAP's provided "vanilla" Demo database with no changes, so if SAP cannot set up drop ship functioning properly on their own Demo, who can???
OK - yes, the cost of the product is pulled from the associated vendor which is problem number one - for companies that sell both inventoried and drop ship items on a regular basis, the cost of that product is never the same. For vendors, onsies and twosies being shipped to our customers incurs a higher expense than a shipment to one site of 100 or 200 items and they will quote a different cost to cover those expenses. It just makes common sense that the vendor's incurred expenses to fill the drop ship versus shipment to our waregouse is going to be different, doesn't it? Therefore the actual cost and dollars paid for the product will be different from WH01 over WH03 (or any other area - Base Price versus Discount Purchase Price), and the gross profit is going to be different between the two versions of a sales process. Creating a thousand different price lists certainly is not the answer!
And this begs a very simple question then - why even put in an item cost on the Item Inventory Tab for the drop ship warehouse AND why does the system pull the WH 03 dollar amount into the Sales Quotation/Order Gross Profit Base Price field but not transfer it to the Purchase Order? Why create a constant flood of erroneous Gross Profit information on drop ship AR invoices unless you are happy to have wasted productivity?
I think the real problem is that this is obviously a very bad design for an SAP B1 function and folks are doing all of these workarounds and extra steps (at least in PL05 so far) to get their work done. I think it is hilarious that when trying to enter a ticket directly to SAP on this, I got the reply that "that is the way the system is designed" (albeit bad design and no effort to direct me to documentation) and had to post my question here according to new SAP B1 support standards.
I am going to close this question as there really is not an answer except "way the system is designed" and this thread is leading nowhere.
Many thanks to everyone who took the time to reply - lol - of course, thanks with points!!!
Take care all - Zal

Inbound Logistics: What are the best options to capture freight costs?

We attempted to implement a freight payables solution which was built on Inbound Deliveries> Inbound Shipments> Inbound Shipment Cost Documents. The PO line items were flagged with a conf.control key which made the above inbound documents relevant.
Very long story short, we had to remove this functionality because of two major issues:
1.     The Inbound Deliveries were created with incorrect quantities some of the time. When the Inbound Deliveries were created with incorrect quantity those errors caused major problems (e.g., over accrual of freight cost to the tune of several millions of dollars!!!).
2.     Also, when the Inbound Deliveries were created with incorrect quantity MRP went berserk (e.g., when the IB delivery has the wrong quantity that shows up in MD04 and the planners are left scratching their heads wondering why the supplier is shipping so much or so little).
I wonu2019t get into the details of how the Inbound Deliveries were being created but suffice to say they were manually entered by the supplier without the benefit of an EDI transaction- it was more of a manual entry- hence the data accuracy problem.
The point of this post is to gain feedback from other customers who have implemented an inbound freight payables solution with success & understand what processes were used to make your project successful.
For example, if I had a u201Cwish listu201D Iu2019d request the following:
1.     The IB delivery document type Iu2019d like to use should be non-MRP relevant. This will eliminate the confusion that occurred when planners run MD04 and see all of the shipment notifications. Also, if the MIGO_GR transaction is used to receive the POu2019s, they will see the quantities on the PO, not on the IB delivery. This would be good for us from a business continuity stand point. However, if the IB delivery is not MRP relevant, than your GR does not accrue the freight cost defined on the SCD which short circuits the entire point of having these documents.
u2022     Q: Have you had any success implementing an IB freight solution with minimum impact to planning / inventory / operations?
2.     As mentioned above, the data accuracy of the IB delivery was problematic. Because of this issue we have changed our thinking so that we would require a EDI ASN to be sent from our supplier to our SAP system. Using EDI we feel that greater accuracy would be obtained since the quantities defined would map to what is being picked or at least aligned with what we would expect to be invoiced for. The problem is we donu2019t know how EDI capable our suppliers are.
u2022     Q: Has anyone had success implementing this with your suppliers on a large scale?
3.     Are there other inbound freight payment solutions that Iu2019m not thinking about u2013 custom or other that you have implemented & can share some of the specifics about? Iu2019d enjoy hearing about them. Since we are re-thinking what we implemented Iu2019m open to any suggestions.
Thanks so much for your time!
Rich Wortmann

Chandra,
Thank you for your reply. I'm aware of the freight condition approach you suggest & the ability to define the carrier in the freight condition.
We explored this functionality in the past. The problem/limitations we've experienced were as follows:
1. Essentially you have to know your freight cost & the carrier by PO line item at the time the PO is created. Both of these variables we typically cannot predict in our environment.
2. We have a lot of situations where the PO is considered a u201Cblanketu201D where it will remain open for a month up to a year. Knowing the entire freight cost for these PO's once they are created is impossible to predict so to support the freight conditions we would have to change our business process which would be a big effort for our organization.
3. Our suppliers ship product based on multiple PO's / PO lines, again it is impossible to predict what the per unit freight cost would be at the time a PO is generated.
These factors are what led us to the IB delivery solution which handles each one of these scenarios quite well provided you have good data when the IB delivery is created.
Regarding your second post: Thanks! This information is helpful.
Sincerely,
Rich Wortmann

Usage of Cost Centers, Profit Centers and Internal Orders

Hello everyone,
i have perhaps for some of you a simple question but it bothers me alot.
Imagine we are using Cost centers and Internal Orders. For them we create statistical key figures using transaction KB31N.
Now we are installing SAP BI and want to create a report which would be generated acording to cost centers but with statistical key figures.
The question would be how to make a connection between cost centers orders and those stat.key.figs?
In our case the economists say that we are using this kind of scenario:
Dist.chanel ->
Sender: Cost center, Cost element
Receiver: Int.Order
and Stat key fig.
This is the only place where we have a connection between thos objects. Is there other way how to connect them. perhaps using profit centers?
If somebody didnt understand it, maybe ill try to explain it a bit better
Reagards
Laurynas Prikockis

Hi Laurynas,
Pls try to understand the concept as explained hereunder...
Cost Element:
Primary Cost Element : Replication of GL to bring costs into CO module when they are posted in FI
                                   module
Secondary Cost Elements: Carriers of costs between two Cost Objects (when we want to transfer the
                                        cost from Cost Centers to Internal Orders, vice versa and more, we create
                                        Secondary Cost Elements to carry the costs and transfer them to the
                                        reciever objects from sender objects)
Cost Center: It is a Cost Object, maintained on long-term basis, where we can capture the costs (Ex:
                    Marketing Cost Center)
Internal Order: It is also a Cost Object, maintained on shor-term basis, where we can capture the costs
                     (Ex: Internal Order for Special Marketing Campaign). Ultimately, whatever the costs
                      posted to this Internal Order, will get settled to Marketing Cost Center.
Staitistical Key Figure: It is used as a basis for allocation of certain expenses (Simple example would
                                  be, Total rent paid for office is $100000 per month. This cost has to go to
                                  different Cost Centers like Finance and Accounts, Marketing, Purchase Dept
                                  etc on the basis of "Area Occupied". So, We will define "Area Occupied" as a
                                  Statistical Key Figure in our system.
                                 Now, when the Rent amount is posted in FI, it wil reach a Virtual Cost Center
                                 (An "Allocation Cost Center" with name "Rent" to be created under your
                                 Controlling Area) "Rent". From there, it has to reach the other Cost Centers (lie
                                 F&A etc as explained above) on the basis of Area Occupied (SKF Created
                                 for "area occupied")
For this, you need enter the Area Occupied values (Ex:Sq Ft) in KB31N and you need to create an Allocation Cycle (Distribution / Assessment) where in you will select "Area Occupied" (SKF) as your Receiver Tracing Factor.
I hope I am clear, don't hesitate to revert back for more explanation...
Srikanth Munnaluri
Edited by: Srikanth Munnaluri on Mar 3, 2009 7:26 PM

Year end closing (Balance carried forward

Hi
Please help. Our company did not do a year close on debtors and vendors. I realised it now with certain debtors, that their closing balance (June 2006) do not agree to the opening balance (July 2006).
Can one do a closing on the sub-ledger (Debtors & Vendors) as well as for the GL. What affects will it be having on our books or is it save to do it.

Hi Theo,
There is probably nothing much you can do to bring the balances to what it should have been by end of June as some debtors would probably have paid amount owed before June 2006 and you may have paid some Creditors too.
Your best bet is to still go ahead and carry out the year end closure of all the various sub-ledgers that has not been done. Once you've completed this, you may then want to embark on a reconciliation process to determine the exact balances as at June 2006 by analysing all payments received from Debtors to see which ones relates to prior 30 June 2006 and adding these back to get the correct figures as at end of June 2006. You would have to do the same for all Vendor payments you have made.
Just to be sure you have not left out anything from your year-end processes, the following would be very useful and handy as a guide. (Though some of them may not be applicable to your organisation)
1. CJCF - Carry Forward Commitments For WBS Elements
2. CJCO - Carry Forward Budgets For WBS Elements
3. IM27 - Carry Forward IM Budget
4. F.07 - Execute AP/AR Carry Forward
5. ABST2 - Reconcile FI-AA Ledger
6. AJRW - AM Fiscal Year Change
7. OAAQ - Check Last Fiscal Year Closed
8. AJAB - AM Year End Closing
9. F.16 - Execute FI Year-End Roll-Over
10. FS10N - Check G/L Opening Balances
11. GJ10 - Execute JVA Year-End Roll-Over
12. GVTR - Execute Special Purpose Ledger Year-End Roll-Over
13. 2KES - Profit Center:Carry Forward of Actual Balance
14. OKP1 - Close All Periods in Old Fiscal Year For CO
15. KSCF - Cost Centers Carry Forward
16. KOCF - Internal Orders Carry Forward
I hope the above helps.
Thanks and Regards,
Jacob
PS: Do not forget to award the points

G/L account number vs Cost Element

Hello Friends,
I need your help to know the diffrence between G/L Account and Cost Element.Do they consist of the same numbers and/or text.I am a non functional guy and i need to get the order numebrs from Table A which has G/L Acct number and Table B which has Cost Element and i have to filter where G/L acct numb and Cost Element are the same.So please advise.
Thanks in advance.

hi
cost elements are like materail costs, personnel costs, energy costs... where a corresponding GL account exists in FI..to allow costs to flow...
When cost element carriers cost between FI and CO they are called Primary, the link is established GL A/c = Cost element(Primary). A question may arise as to whether all GL accounts are cost element, it again depends upon the business requirement,
assign points if useful
srilakshmi

Miro Delivery cost

Hi,
While Doing Miro delivery cost line item is not generated.We had modified earlier 2 yrs back condition for freight as ZFRC .It is working fine.But for this PO that particular item was not showing.
Actual Below in MIRO transaction it shows seperately as DCGR items but it is not getting populated.
Where do I check?
Helpful answers will surely be rewarded by points
Regards,
Abhijit

Hi,
If ZFRC is missing in the PO then you will not get the planned delivery cost for carrying out invoice verification. Planned delivery costs are posted when GRN (MIGO) is done, this is so that the delivery cost liability is generated at the time off goods receipt, against which invoice verification is done. You can do either of the following:
1. You can change the PO, insert the condition, which will then send the PO into re-release. You get it released and then do the GRN. Now when you do MIRO, the planned delivery cost can be invoiced.
2. For this specific PO, carry out the invoice against unplanned delivery cost.
For the future, make this a mandatory condition, so it does not get missed out again.
Cheers.

Secondary cost element........

Hi,
Is it necessary to create number of activities = to number of secondary cost element.
or
only one cost element is enough for all activities for posting to cost center.
Regards,
Imran

Dear,
Secondary Cost Element
When cost element carries cost with in CO, then they are called secondary cost element.
Example.... - Take Product Costing
On manufacture of the goods the cost of the above product (production order) is arrived at accumulating material cost + operational cost + overheads (%), additive cost if any.
The cost of operation is accumulated in cost centre be it production / production service / service cost centres, while booking FI entries.
Those operational cost has to be allocated to production order based on operational activities carried on and its cost involved in it. Those operation activities in CO are termed as activity types and has to link the same in KP26 with rates and cost centre (ie., sender cost centre and receiver production order).
In order to find the production order cost, the allocation of cost from sender cost centre to production order for the operational activities carried on and its cost associated with it, have to be loaded, hence in CO the cost centre allocate that portion of operational cost to production order, and this cost is carried by a cost element (since there are no FI involvement and entries are flowing within CO by crediting sender cost centre and debiting receiver production order a cost element has to be created.... say "Operational Cost - Activity" the entry will be
Operational Cost - Activity (Production Order) Dr Rs.XX
To Operational Cost - Activity (Cost Centre) Cr Rs.XX
The entries are with in CO. And the cost element created is secondary since it does not has an link with GL Account in FI correspondingly.
In CO the production order and cost centre are co object including but not limited to.
and further notes and configs see below link.
http://www.copacustomhelp.state.pa.us/infopak/nav/finance/controlling/301/index.htm
Hope clear to you.
Regards,
R.Brahmankar

Secondary Cost Element Setting Criteria

Hello all SAP usrs
I am quite green for Controlling.
I have a question need all your help.
Could I know what criteria to be used to set secondary cost element? Also I would like to know the usage of the secondary cost element. Please share some knowledge on it. Thanks!
Best Regards！
Gavin

Hi Gavin
Secondary cost elements are like production costs, material overheads, production overheads, they can be created and administered in only CO. These are used in internal cost allocation, overhead calculation, settlement transactions., it does not flow to FI...
When cost element carries cost with in CO, then they are called secondary cost element.
Example.... - Take Product Costing
On manufacture of the goods the cost of the above product (production order) is arrived at accumulating material cost + operational cost + overheads (%), additive cost if any.
The cost of operation is accumulated in cost centre be it production / production service / service cost centres, while booking FI entries.
Those operational cost has to be allocated to production order based on operational activities carried on and its cost involved in it. Those operation activities in CO are termed as activity types and has to link the same in KP26 with rates and cost centre (ie., sender cost centre and receiver production order).
In order to find the production order cost, the allocation of cost from sender cost centre to production order for the operational activities carried on and its cost associated with it, have to be loaded, hence in CO the cost centre allocate that portion of operational cost to production order, and this cost is carried by a cost element (since there are no FI involvement and entries are flowing within CO by crediting sender cost centre and debiting receiver production order a cost element has to be created.... say "Operational Cost - Activity" the entry will be
Operational Cost - Activity (Production Order) Dr Rs.XX
To Operational Cost - Activity (Cost Centre) Cr Rs.XX
The entries are with in CO. And the cost element created is secondary since it does not has an link with GL Account in FI correspondingly.
In conclusion there is need to creatre a secondary cost element when when you want to disribute the cost with in CO module not in FI
Reagrds,
RKD

Cost center and Cost element.

Hi all,
I am in an urgent need to understand the relation between cost center and cost element. Please provide me with their individual information as well as the link they share. An existing relationship table between the two, if any, ...then plz mention.
Thanks & Regards,
Naresh

Cost Element: cost element is an individual which carry cost like salaries, wages, power expenses, etc.. These Cost Elements are Two types
1. Primary Cost Element
2. Secondary Cost Elements
Primary Cost Element will carry cost form FI to CO (Cost Centers, Internal Orders, Cost Objects, etc)
Seconday Cost Elements carry cost with in CO to different Cost Centers, Internal Orders, Cost Objects, etc
Cost Center: Cost Center is an individual which contain collection of costs. For example Admin is a cost center, it contain costs like Salaries, Power, Rent, Stationary etc,
With this following report you can retrieve cost elements given a cost center controlling cost center accounting information systems reports for cost center accounting plan/actual comparisons
Thank you

Product costing of spillit valuated material

Hello,
Please guide me regarding how does Product costing is carried out when input material is spllit valuated.
Thanking You ,
Santosh Rothe

Costing value zero can happen due to multiple reasons. Here are some of the things to be considered.
Did you check master data of material C to see if there are any costs for material C?
What are the valuation strategy for material valuation set up in the valuation variant? Is there any strategy that included price from purchase info record?
Is info record set up for material C in the new system that you are testing?
Did you check activity quantities in routing and activity rates set up in cost center for the period you are running standard costs?
Did you check the formula in the work center costing tab?
Thanks,
Ram

Difference between cost center & Responsible cost center in asset master

I want to know difference between cost center & responsible cost center in asset master on following perspective.
1. Financial accounting veiw -
2. Business & report veiw.
I have read through F1 help
Cost Center
Key uniquely identifying a cost center.
Use
The SAP system uses the cost center assignment in the asset master record to determine the cost center affected when the following types of asset posting are made:
Fixed asset depreciation
Gain/loss from asset sales
Cost center responsible for asset
Cost center that is responsible for the asset, but which does not carry the depreciation for the asset.
Example
For example, the cost center "vehicles" can be responsible for all vehicles, while other cost centers carry the depreciation for the vehicles
I can understand from F1 what will be the impact on finance accounting. My question is how it helps in reporting etc & business logic for using responsible cost center. Which report will be usefull to see data at responsible cost center.
Regards
T

Closed

Where to find debit entry for planned activities through cost centre?

hello experts,
our client would like to know the impact of planned activities cost debit entry. the scenario is as follows.
1. at the year begining we are planning activity hrs against any cost centre.
2. respective activity hours are being confirmed through PP/PM orders.
this time orders are being credited and cost centres are being debited for the activty prices.
Now the question is tracability of credit entry wrt corresponding entry debit entry in the cost centre.
Can anyone help me out?
Regards,
Varsha.

Hi,
Let break this issue.
1. If you maintain KP06, with reference to CE / CC / Activity, you get debit entries for the relevant cost centers
2. If you maintain KP26 Planned Activities and Planned Rates, you get credit to the relevant cost centers
So in the S_ALR_87013611 report referred to above, you would get both debit and credit to the cost centers in Plan Costs column + you can check the plan activities in the below section.
As against this actuals:
1. When you post your expenses to the cost centers / carry out assessment or distribution cycles for production cost centers (linked to the activity types), you ge the actual debits.
2. When you confirm the operations of the production orders, you get the credit to the cost centers.
Hope this clarifies your doubt.
Cheers!!

CProjects Planned costs display

Can you display planned costs in cprojects after doing financial integration(Calculated on Role/Task revenue rates) against each phase or task without going into each individual task separately.
Which all options of displaying planned costs are available and how are these configures ?
Is this carried out via the planning mechanism chosen Role-based resource planning or Task Based.If yes, Where do you specify which of the 2 options to choose ?whether you want to choose role based or task based planning.

Hai Pooja
Costing is carried out in cProjects based on the project roles r tasks.
Reg tasks based cost planning u can assign the required capacity to the individual tasks during the planning of the project structure.This required capacity is multiplied by the cost/revenue rates ti determine the planned costs and planned revenues.
Task is done by a role - means for example Project Manager specifies which positions are to be filled up - these positions are called in cProjects as Roles(resources for the project). Thye are assigned to the tasks in which the positions are involved.
Check the configuration in - SPRO - cProjects - Connection to external system - Accounting Integration - Integration using Single Object Controlling in SAP R/3 CO - Make General settings
ENJOY mySAP PLM
Regards
PP

Cost of Carry

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