Reporting Direct Production Cost Center Over/Under Absorption

Hi,
I am trying to find a way to report Manufacturing Cost Center Over/Under Absorption in a similar way COGS are reported in CO-PA. I mean - I would like to breakdown Direct Manufacturing Cost Center Over/Under Absorption into cost elements (just like COGS are broken down in COPA when invoice is posted).
I wonder if this is possible in SAP without Material Ledger implemented. If yes - can it be achieved by using a standard functionality or does it require an additional development?
Thank you,
K

Thanky you for your reply Ranjan,
My intention was to show Cost center over/underabsorption broken down by cost componets (activity Labour, Machine, Overhead). Currently it is shown as a balance on cost center. I would like to be able to recognize which part of Direct manufacturing CC balance refers to Labour, which to Machine and which to Overhead. Is it possible to achieve in sandard report or additional settings/development is required.
Regards,
Karol

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Problems with over/under absorption on production cost centers - GBB AUI

Hi,
I have a problem with over/under absorption on production cost centers after month end closing.
We are using material ledger CKMLCP and actual activity rates from direct cost centers are settled directly to products using GBB AUI account determination.
Unfortunately from time to time there appears a significant balance on production cost centers after running CKMLCP. What might be the reason? I have analysed line items on cost centers but cannot find any answers.
We are using assignment of cost elements to particular activity types (function splitting), and I have checked that all cost elements are assigned to proper activity types.
Best regards,
Karol

Hi,
DP90 is used for Resource related billing, is broad term basically when you performing service that time you have to raise billing on the basis of resources which you had spend for perticular service
DP90 is run on the basis of DYNAMIC ITEM PROCESSOR,
http://help.sap.com/saphelp_di471/helpdata/en/59/54fc37004d0a1ee10000009b38f8cf/frameset.htm
I will tell you one process from the prspective of CS module
Create notification >> Create service order >> Confirm service order >> Resource releted billing (genrates sales document) >> Invoice to customer with refrance to sales document.
Now here DP90 is used to determine material,IN SALES DOCUMENT because CS module don't have billing feature as like SD Billing.
In CS module activities/Operation,but in SD module we speciefy material codes
So DIP determines XYZ activity/operation is ABC material in SD
kapil

Over Absorption in Production Cost Center.

Dears,
We are getting the over absorption in cost center after doing of actual price calculation settlement. we have done the following transactions at month end. eventhough we are getting over absorption (i.e., credits are more than debits) Credits are activity costs are transferred from production cost center to production/process orders or product collectors.
KO8G settlement of internal orders to cost centers.
KSV5 execution of distribution cycle.
KSII execution of actual price calculation.
CON2 revaluation at actual prices.
CO88 Settlement of Production/Process Orders.
Even after doing of the above trnasactions we are getting over absorption.
kindly advise me in order to resolve this issue.

Hi Divraj,
The same issue i am replicating in the development server i created one assessment cycle i gave one service cost center as sender and one cost element group, the group contains 10 primary cost elements(GL's), i done postings with 10 gl's respect to this service cost center, in my assessment cycle i gave one assessment cost element in segment header the sender rule is posted amounts, the receiver tracing factor contains variable portions, actual activity and no scaling, in receiver i gave cost center group contains 4 production cost centers, sender values is share in 100%, version is zero the receiver tracing factor tab contains variable portions as actual activity and one activity i maintained, the receiver weighting factor contains 4 production cost centers and factor percentage is 100%.
Now i execute the assessment cycle in KSU5 i am getting senders in cycle but receivers i am getting zero, when i took the actual activity, variable portions and no scaling i have to maintain activity price in KP26 and this cost center i have to maintain in process order that is fine please explain me how the cost will distributed to production cost center please explain the procedure in detailed.
Hopefully i will get clarity on the concept................

What is Over Under Absorption means?

Hi guyz,
When I'm running Cost Center Actual/Plan/Variance Reporting, there is a field that is called Over/Under Absorption.
What does it mean by Over/Under Absorption?
Thanks guyz

Hi Meila,
It can be a surplus or deficit in actual costs compared to planned costs on the receiver side, but does not have to be.
Imagine your sending cost center is a grinding mill in a cement plant. It is planned to produce 100.000 t cement in the month, for what the mill would run 1000 h. The rate is 100u20AC /h. Therfore the planned absorption would be 100.000u20AC. In the end of the month it turns out that actually the Mill ran 1200 h and 120.000 t Cement were produced. Each of the daily cement production orders would show no unplanned costs, but the mill cost center would have an overabsorption of 20.000u20AC.
best regards, Udo

Transfer price (Internal Reveue to be allocated to Production cost Center)

Hi Sap Gurus.
My cleint using tranfer price without activiation material Ledger. The internal revenue should not reflect in Fi. For that we have created ztable and we will be able to transfer the stock between profit center and we are getting internal reveue to the sending profit sender and expenses to the receiving profit center finaally balance become a zero,(we are maintaing same gl account while doing transfer price). Now expense in receving profit center should consider as part of produt costing. how to allocate this expense to the production cost center when there is no balance.
Example
SENDING PLANT 1 MATERIAL 123456 MM PRICE (10) TP 15
RECEIVNING Plant 2 Material 123456 MM PRICE (10) TP 15
While taking STO system is posting with material master price 10, but in the production if they are using that material system should take 5 also . 10 is the cost and 5 is overhead.
help me out?

These are some few things I found out. Below is the result of a test I carried out when I tried to create a Settlement Rule for a statistical order.
Statistical order may not contain a settlement rule
Message no. KO188
Diagnosis
Order 12770, for which you are trying to create a settlement rule, is statistical.
System Response
Statistical orders cannot have a settlement rule because they cannot be settled.
Procedure
You could possibly remove the statistics indicator from the order (only if nothing has been posted to it yet).
I may be wrong but I have determined that, for production orders, you will have to use Standard Production Order Type and not a statistical order. The object class has to be production as well.
You will only be able to create a settlement rule if it is not a statistical order with the assignment category as ORD. Also, in your order type: Internal Order - Production, under general parameters, you will have to assign settlement profile 30 which is production order.
You may have to define planning profiles for co production orders, costing variant, valuation types. Maintain order types using KOT2. Example:
Order Type: PP01 Standard Production Order
Order Category: 10 PP Production Order
Number Range Interval: 1000000000--19999999999
Settlement Profile: abc
CO Partner Update: Semi-Active
Check of Classification
Next Maintain Settlement Profile: ABC Standard Production Order
Check off "To be Settled in Full
Default Allocation Structure: E.G: EB
Indicators: check off: 100% Validation. % settlement, equivalent numbers
Valid Receivers: 1 for most
Document Type: OS Order Settlement
Create Allocation etc.
Hope this gives you some pointers as to how to proceed.
Elias

Allocation of cost from service cost center to production cost center

Dear sir ,
Will I use to distribute the cost from service department to production department and that cost centers also using for activity planing will get currect result in product costing ?

Hello,
Can you clarify what you want to do ?
Allocation of cost from service cost centers to production cost centers can be done with the help of Assessment / Distribution cycles and you can do a activity planning using the same costs as well. The steps for activity planning would be as under:
1. Create primary cost planning in the service and production cost centers (KP06)
2. Create activity planning in the production cost centers (KP26) without any rate
3. Run assessment / distribution cycles to transfer cost from the service cost centers to production cost centers (KSUB / KSVB), in case you are not transferring based on activity quantity then also do SKF planning in KP46
4. Run plan cost splitting in case you have more then one activity type (do config for splitting structure beforehand) (KSS4)
5. Calculate Plan price for the production cost center activity types (KSPI)
BR // SG

Material Ledger,Revaluation Production Cost Center ,Standard Cost

Hi, I have a problem with revaluation of production cost centers.
Firstly, production cost center expenses are settled via activity types onto the production order at the end of the period. However, CKMLCP revaluate cost centers after the settlement because of using standard price. So cost centers at the end of the period have some amount.
As a result we can not find actual price for production orders.
If I use standard cost in order to consume on cost centers, material ledger revaluates again this cost centers. I dont want this condition. Because this cost center is settled to other cost object before closing.
Thanks.
Message was edited by:
Ergul Taslacioglu

Hi
Go to the following path in SPRO:
Controlling -> Product Cost Controlling -> Actual Costing/Material Ledger -> Actual Costing -> Activate Actual Costing. Double-click on "Actiavte Actual Costing" and change the indicator from "2" to "1".

Attaching Variable to the Library for Report Painter for Cost center report

Hi,
I want to attach the Variable - "Cost element group" to the Library for Report Painter for getting Cost center report. The Cost center report should be cost element group wise with actaul, budget and variance. Please let me know the process.

hi..
I think you have to first define Attribute mis as "V" in Cost element master basic data tab for the elements you want to capture as varible.
Then make a Cost element group / set in KAH1/GS01 and use it in your report.
kkumar

Library develop report with report painter in Cost Center Accounting

Dear experts!
Now, I'm getting some issue about finding library for developing report with report painter.
Really, i don't know libraries that are used to develop report with report painter for Cost Center Accounting.
Can tell me about them?
Help me, please.
Best regards, Huy

Hello Huy,
CCA reports would be based on table CCSS, you can go to transaction GRR2 and check the various libraries listed there and find a suitable one. You can also use libary 1AB which contains the various cost center variance reports or you can use transaction GR21 to create your own library.
Kind Regards // Shaubhik

Please use production cost center!

Hi Experts,
I am trying to raise a vendor invoice via FB60. After giving all the inputs like vendor, Amount, GL account, cost center. I am saving the document in ECC6. I get the error as below:
Please use production cost center! could i know why i am getting this error

Hi Umesh,
I request you to check if there is any validation in place as this is not a standard message.'
You can take help of a Abaper and get it debugged and find out of the soure.
Regards,
Andy

Post the material(against PO) directly to cost center.

hi
is it possible to post the material (against PO automatic a/c assignment ) directly to cost center.
Pls sugest any posibilities without amendment in PO.

Hi,
If a PO is created with Account Assingment Category "K" , when GR is done for that PO Item, material is directly posted to that cost center. It wont appear in your Stock.
While creating the PO you have to give the Cost center details and also the relevant GL account. ( This GL account is used for posting the values of the item , because for standard pos when you do GR for a stock item it will debit the value to that GL account attached for the material.)
Regards
Reward Points if useful

Over/under absorption of overheads

Hi SAP Gurus,
Request for your help to resolve my following queries.
We calculate plan activity rates & execute a costing run. Also we calculate the overhead in costing sheet with plan rates. I would like to know, what happens for the actual costs booked? How the under/over absorption is handeled in SAP?How this is settled? How this is charged to production? Is there any accounting entry passed at the time of adjusting under/over absorption?
(Points will be assigned )
Regards,
makrand

Thanks Markand. I am quite a beginner in SAP COPA. I have this question, may be not exactly the one you asked but somewhat related.
I am a bit confused by seeing the difference in total overhead spent as shown to me by cost center (Z3611, Z3612, Z3614) and the gross profit & income statement in COPA (via KE30).
When I ran the cost center transaction, it shows me that my company has spent 900k$ for the month of November for production expenses (pdex) (Not including the line "Under/over absorption). Now, when I see the income statement coming from COPA, it shows me that we had standard overheads of 800k$ + Spending variance of 100k$ and then 150k$ of other overhead variances (volume ovhd variance & Production ovhd variance). (I do understand the significance of volume & production ovhd variance)
The standard overhead+ spending variance gives me 900k$ which is the total actual money spent on overheads. But what is confusing to me is the rest of 150k$. I was of the view that this 150k is that part of 900k$ which was not productive or not capitilizable to inventory. In other words, volume & efficiency variance. I was of the view that the total overhead variances when added to standard overheads should give me the total overhead spending of the month; which means 800+100+150 but it gives me the total of 1050k$.
I am worrying that the income statement is taking 150k$ twice as cost. First in standard+spending variance and then as volume/production variance.
why does my (Standard overhead+ Total ovhd Variance) does not match 900k$ (the actual money which left the hand) shown in cost center.
May be the better way to ask this question is why COGS in COPA income statement is like
COGS = Standard Overhead + Spending OVHD Variance + Volume OVHD Variance + Production OVHD Variance + (all other non-ovhd costs)
Why is it not
COGS = Standard Overhead + Spending OVHD Variance + (all other non-ovhd costs) because for me Volume OVHD variance & Production OVHD variance are just the part of total ovhd spending i.e they are already in the addition of (Standard OVHD + Spending OVHD Variance).
I am told that 150k$ is charged additionally to COPA due to high activity rate. But I did not really understand. For me, the actual money which left the hand was 900k$ (variances or no variances). Then why the income statement shows 1050k$.
I hope you will be able to help me as I have not received a simple answer from anyone yet. Thanks alot in advance!!

Report Painter Request - Cost Center and WBS Element

Hi Everyone,
Currently, my company settles all project related expenses through to a cost center by way of an internal settlement cost element (category 21). The issue with this is that when the expense gets to the cost center, they lose all visability as to where the expense originated, such as salaries or travel expense (category 1 cost elements). We can't switch the settlements to the originating cost element from wbs to cost center just because of the additional data/volume that will cause. My thought was to create a report painter that can run by cost center but also show the wbs's that settle to that cost center and group the expenses by primary cost element (cat 1). I'm assuming that there is a way to marry a cost center and wbs element by way of the wbs settlement rule but how would that be done for reporting purposes? I've seen it done before by way of a nightly job that created sets based on the combination of cost center and wbs but I'm not sure how that was done. Any advise and examples?
Example:
Cost Center: IT
WBS: A.0017.01.01 (settles to cost center IT)
Postings made:
1. CC IT and CE 552000 "salaries"..............................$20,000
2. WBS A.0017.01.01 and CE 552000 "salaries"........... $5,000
3. Settlement of WBS to CC (expenses flow through to CC IT by way of CE 985000)
I want to run CC IT and see that the account 552000 really shows $25,000 and can be broken down by cost object (CC and WBS by the amounts above)
Thanks,
Pete

Hi Peter,
I had a similar requirement and used report painter report group 1SHK-002 (in library 1VK).
I took a copy of the standard and ameneded it slightly, I switched the explode so it occured on the cost center not cost element.
The report runs so that direct costs on the cost center are shown at primary cost level. And values settled to the cost center are shown on the partner object. In your case i guess WBS Elements (Partner ObjType WBS).
Now in my case I didnt need cost element breakdown on partner level, just on cost center so effectively I have(sorry for text alignment but I hope you get the idea):
GL1   ............. 100
GL2   ............. 250
+ Cost center1 total ....350
GL3 .............   50
GL4 ............. 100
+ Cost center2 total.... 150
Primary Cost Total ..... 500
X-YZ-1.200 .............   50
X-YZ-1.400 ............. 100
+ WBS total ............. 150
IO 1............. 100
IO 2 ............. 100
+IO total ............. 200
Partner Total............. 350
Overall total ............. 850.
Its not exactly like your requirement but it might be a good report for you to work with to get what you need.
Elaine

Report pianter - Responsible cost center

I have a requirement where in the user wants to look at all the internal orders that fall under the same reponsible cost center. Can anyone guide me how to get there using report painter?

hi maheedhar,
Report Painter
Key Features of Report Painter
Prepare Plan/Actual/Variance Expense Report
Cost Elements Actual            Plan           Variance
Salaries Xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
Office         Xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
Travel         Xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
Supplies Xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
Total         Xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
Use the following account numbers and descriptions in your report:
Account number Description
430000         Salaries
470000         Office
474100         Travel
476000         Supplies
Create a new report.
Menu Path: Information Systems > Ad hoc reports > Report Painter > Report > Create
On the Report Painter: Create Report screen, enter:
Library 1VK
Report RSS-A
Report Description Report w/Total Row
Hit <Create> button to move to the next screen.
Create the Rows of the Report The first four rows are cost element characteristics
Screen: Report Painter: Create Report
Type Cost Elements in the lead column cell
Double click on Row 1
In the Pop-up window 'Element definition: Row1", enter:
Note: If Pop-up window (select element type) appears, choose 'characteristics' and hit <Enter>.
Select 'Cost Element' as the characteristic in the 'Available characteristics' section
Hit <Move selected to left> button to move the characteristic 'Cost element' to the 'Selected characteristics' section
From 430000
Hit <Change short, middle and long texts> icon (at the bottom of the window)
In the Pop-up for Enter Texts, Enter:
Short Description from Table above for this Account
Click on the <Copy short text> button to copy this description to the other fields.
Hit <Confirm> to close the Pop-up
Hit <Confirm/Enter> to check consistency and close.
Repeat the above steps for the other 3 accounts
Create a formula row to calculate the total of the Cost Element rows
Screen: Report Painter: Create Report
Double click on Row 5 or the next empty row.
In the Pop-up for Select Element Type select 'Formula'
Hit <Enter> to close the Pop-up
In the Pop-up 'Enter Formula'
Use the calculator buttons to create the formula Y001 + Y002 + Y003 + Y004
Hit <Enter> to close the Pop-up
In the Pop-up 'Enter Texts'
Short Total
Click on the <Copy short text> button to copy this description to the other fields.
Hit <Enter> to close the Pop-up
Make sure your cursor is in the cell containing the word Total
Follow the Menu Path: Formatting > Row
In the Pop-up 'Row Formatting'
Overscore checked
Underscore checked
Hit <Enter> to close the Pop-up
Create the first column for actual costs
Screen: Report Painter: Create Report
Double click on the Column 1 cell.
In the Pop-up 'Select element type'
Select Predefined Key Figure radio button, and press <Enter>.
In Pop-up 'Choose predefined column'
Select Actual Costs as the predefined column, and press <Enter>.
In the Pop-up 'Element definition: Actual costs'
Press <Confirm> to check consistency and close.
Define the second column for plan costs
Screen: Report Painter: Create Report
Double click on the Column 2 cell.
In the Pop-up 'Select element type'
Select Key Figure with Characteristics as the element type, and press <Enter>.
In the Pop-up 'Element definition: Column 2'
Value Type 01   (Plan)
Version 0   (Actuals)
Valuation 0   (Legal valuation)
Hit <Change short, middle and long texts> icon
In the Pop-up for Enter Texts, Enter:
Short Plan
Click on the <Copy short text> button to copy this description to the other fields.
Hit <Confirm> to close Pop-up.
Hit <Confirm> to check consistency and close.
Create a formula column to calculate the variance between actual and plan costs
Screen: Report Painter: Create Report
Double click on the Column 3 cell
In the Pop-up 'Select element type'
Select Formula as the element type, and press <Enter>.
In the Pop-up 'Enter Formula'
Use the calculator functions to create the formula X001 X002.
Hit <Confirm> to close the Pop-up
Enter Variance as the text for all three fields.
Hit <Enter> to close.
Define the parameters for general data selection
Screen: Report Painter: Create Report
Follow the Menu Path: Edit > Gen. data selection
In the Pop-up 'Element definition: General data selection'
Select Controlling Area, Cost Center, Fiscal Year, and Period as the selection characteristics
Hit <move selected to left> icon to move the selected characteristics to the selected characteristics section of the window
Enter the following values for your characteristics:
Controlling area RSS   ('from' field)
Cost center - 1000 to 2000
Fiscal year - Current year
Period - 1 to 12
Hit <Confirm> to check consistency and close.
Check the report for any errors and save it
Screen: Report Painter: Create Report
Follow the Menu Path: Report > Check or press < Shift + F6>.
When the system comes back with a message of No errors were found, click <Save> to end.
Assign the report to a report group using the function in Report Painter
Screen: Report Painter: Create Report
After the system has come back with Report RSS-A was saved
Follow Menu Path: Environment > Assign report group
On the Insert Report in Report Group Screen:
Enter Z0#A as the group
Hit <Enter>
In the 'Create report group' pop-up window
Click <Yes> to create the group
Make sure the system has come back with Report RSS-A was saved in Report Group Z0#A.
Execute the report
Screen: Report Painter: Create Report
Follow the Menu Path: Report > Execute
Notice that there are no selection criteria to enter. These were hard coded in the general selection characteristics.
Click the <Execute> icon.
It is a very basic report of plan, actual, and variance costs for a group of predefined cost centers.
Assign the points if helpfull
ranjit

Cost Center Report for each Cost Center

Hi everybody,
I am using SAP R/3.
I have 90 Cost Centers (and Variants) and want to print a report for each one. But I dont want to key in all 90 Cost Centers (or select all Variants).
What opportunities do I have? And I would like to have a kind of report were I can change the layout.
I use this kind of report (no standard):
Y_HGS_46000001 - Actual : month/cost center
The problem: We have more than 500 Cost Centers in our system. So I can't use "range".
Markus
Edited by: Markus Schreiter on May 27, 2008 4:12 AM

@ Karl:
I defined variants for:
1. "All Cost Centers"
2. "Business Divisions"
- Production
- G&A
- Selling
- Non-Operating ...
3. "Business Groups"
- NSW Lab
- WA Lab ...
4. "Each Cost Center"
With No.1 I now have the opportunity to run a report with all CCtr.
Markus

Reporting Direct Production Cost Center Over/Under Absorption

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