4/16/2015

AutomationofActualCostingRun(CKMLCP)inMa...|SCN

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Version1

createdbyManishSharmaonMay13,201412:17AM,lastmodifiedbyManishSharmaonMay13,201412:48AM

Introduction:
InMaterialledger,ActualCostcalculationisanimportantpart,whichincludesmultiplestepsthatneedtobeexecuted
bythebusinesscontrollers.Thesestepsincludeproduction/processorderclosing,overheadcostcalculation,
executionofassessment/distributionorindirectactivityallocationcycles,actualcostsplit,actualactivityprice
calculationandthemostimportantCKMLCPexecutioninmaterialledger.
CKMLCPincludesmultiplestepsthattookmanyhourstogetexecuted.IfwetakeanexampleofaMNCorganization
presenceallovertheworld,thenexecutionofperiodendclosingtookmorethan10to15hours.Inthisdocument,Iwill
explainhowwecanatomizetheexecutionofCKMLCPandreducetheexecutionoftime.

PeriodEndClosingCKMLCPOverview:

CKMLCPisexecutedtocalculatePeriodUnitPrice(PUP),whichbasicallyrepresentaverageactualcostformaterial
orsemifinishedgoods.ExecutionofCKMLCPincludesthebelowsteps:
Selection
DetermineSequence
Singlelevelpricedetermination
Multilevelpricedetermination
Revaluationofconsumption
WIPrevaluation
Postclosing
Markmaterialprice
DefinethecostingrunnameandperiodintransactionCKMLCP

SelectalltheplantsforatGeneraldataandsavethecostingrun.

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NowclickonParametersofeachsteps(forselection,determinesequence,Singlelevel,multileveletc.),definethe
parameterscriteriaandsavethevariant.

Selection:

ExecutionofSelectionstepsidentified,thelistofmaterialsforwhichthePeriodicUnitPricecalculationneedtobe
executedduringCKMLCP.Theselectionstepworkonthebelowconcept:
SelectionofallthematerialsforthoseplantsspecifiedatcreationofCKMLCPcostingrun
Itincludesthelistofmaterialsforwhichanygoodsmovementhappenedduringthecurrentperiodoranyofthe
previousperiodsafterthegoliveoffplantinMaterialledger
ThematerialforwhichMLactiveindicatorisdonematerialmaster
Materialwithstatusotherthannotdefinedornew.
Clickonchangeparameterforselectionstep:
SelectbackgroundprocessingandSavelog,clickonSavebuttontosavethevariant.Notedownthevariantname(it
willbesameinalltheotherstepsunderthesamecostingruninCKMLCPforasingleperiod).Don`tneedtoexecute
thestepsnow.

DeterminingSequence:

Executionofthisstepdeterminesthesequenceofmaterialsinwhichtheactualcostneedstobecalculatedforthose
materials.
Itdeterminethegroupofmaterials,thecostofwhichdon`tdependthecostofanyothermaterials.Generallytheseare
externallyprocuredmaterialsfromexternalvendor(notfrominternalorganizationtransfer,orpurchasefromsome
otherplantofsamecompany).ThesematerialsareconsideredforactualPUPcalculationatsinglelevelprice
determination.Alltheothermaterials,manufactureinhouse,subcontracting,purchasefromsomeotheraffiliatesin
thesamecompanyareconsideredformultilevelpricedetermination.
Clickonchangeparameterfordeterminingsequencestep
SelectbackgroundprocessingandSavelog,clickonSavebuttontosavethevariant.

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Singlelevelpricedetermination:

Inthisstepsystemcalculateasinglelevelperiodicunitpricebasedon:
Standardpriceofsinglelevelmaterials
Consideringthevariances(singlelevelpricevariance,exchangeratedifference)
Externalorinternalgrouppurchasepriceandlandingandnationalizationcostvariance,etc
SinglelevelpricedeterminationsmainlydothepricecalculationformaterialprocurementtypeF(external
procurement).
AllowSingle&Multilevel:Clickonauthorizationandallowsingleandmultilevelpricedetermination

Clickonchangeparameter:
SelectTreatingmaterialsalreadyprocessedtoprocessagainordon`tprocess.Selecttheothercriteriaasspecifiedin
belowscreenshort.Savethevariant

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Multilevelpricedetermination:

InthisstepsystemdothePUPpricecalculationsbyconsideringthebelowprices:
VariancebetweentheStandardpriceofrawmaterialswiththeSinglelevelPUPcalculatedatsinglelevelprice
determination
VariancebetweenPlanactivityratewithActualactivityrate
Varianceallocationperformedthroughtheactualflowofgoodsonactualquantity
Variancebetweeninterplant(undersamecompany,mayormaynotbeunderthesameco.codes)transferarealso
considerifanygoodsmovementhappenedbetweentheseplants,otherwisenot
AllothervarianceshavinganimpactonlowerlevelmaterialsactualcostareconsiderforcalculatingactualPUPfor
higherlevelmaterials.
Clickonchangeparameterformultilevelpricedetermination:

SelectTreatingmaterialsalreadyprocessedtoprocessagainordon`tprocess.Selecttheothercriteriaasspecifiedin
belowscreenshort.Savethevariant

Revaluationofconsumption:

InthisstepsystemdotherevaluationsofalltheconsumptionbasedontheactualPUPcalculatedatsinglelevelor
multilevelpricedetermination.Themainpurposeofthisstepistobringthecostofconsumptiontoactualcost,sothat
theprofitmarginsarenotoverorunderstated.
Clickonchangeparameterforrevaluationstep:
SelectTreatingmaterialsalreadyprocessedtoprocessagainordon`tprocess.Selecttheothercriteriaasspecifiedin
belowscreenshort.Savethevariant

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WIPrevaluation:

InthisstepsystemdotherevaluationsofalltheWorkinprogressbasedontheactualPUPcalculatedatmultilevel
pricedetermination.
ClickonchangeparameterforWIPrevaluationstep
SelectTreatingmaterialsalreadyprocessedtoprocessagainordon`tprocess.Selecttheothercriteriaasspecifiedin
belowscreenshort.Savethevariant

Postclosing:
Atpostclosingstep,systemdothepostingofallthevariancescalculatedduringsinglelevelormultilevelprice
determinationanddotherevaluationofconsumptionandclosinginventory,andpassedthenecessaryentries.
AllowPostclosing:Clickonauthorizationandallowpostclosingforthecurrentperiod

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ClickonchangeparameterforPostclosingstep
SelectprocessingtypeasExecuteSelecttheothercriteriaasspecifiedinbelowscreenshort.Savethevariant.

Markmaterialprice

MaterialledgerprovidesthefunctionalityofconvertingthecurrentPeriodicunitPrice(PUP)asstandardcostofnext
month.ThiscanbedoneviaexecutingtheMarkmaterialpricestep.
Afterexecutingthisstep,thePUPofcurrentmonthsgetsupdatedasmarkedcostestimateforcomingmonth.For
converting,thePUPofcurrentmonthasstandardcostofnextmonth,weneedtoactivateDynamicpricerelease.
ClickonchangeparameterforMarkmaterialpricestep:
Selecttheothercriteriaasspecifiedinbelowscreenshort.Savethevariant.

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Dontexecuteanystepswhilechangingthestepifweexecutethestepsatthatpointoftime,thenweneedtowaitfor
firststeptogetexecutedtostartthenextstep.

AutomationofstepsforCKMLCP

AllthestepsforCKMLCPcanbeexecutedinonestepbydesigningtheprocessflowwiththehelpofbackgroundjob
schedule.
NowAutomatethroughjobrunswiththeprogramsusedforexecutingallthedifferentsteps.InthebelowtableIhave
mentionedthenameofprogramusedforexecutingthestepsbySAP.Wecanusedthenameofprogramspecifiedin
thebelowtable

TransactionSM36
Definethebackgroundjob,clickenter

Nowatstep1:definethedetailsforselectionsteps.

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ClickonSave

Nowclickonnewstepandatstep2,definethedetailsofdeterminesequence:

Clicksave

Inthesamewaydefineallthestepsintherightorder.
Tillthestep6,thedetailswillbe:

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Definefortheremainingtwoandexecutethebackgroundjobrun.

Definethejobstostartimmediateandsavethevariant.Afterfinishingthejobs,iftherearenoerrors,wecancheckthat
allthestepsforCKMLCPgetexecutedsuccessfully.

Thesametypeofprocessescanbeusedtoatomizethedifferentcostingprocess(likeCK40N)withoutanycomplex
development.Thiswillresultsavinglotoftime.

3686Views

Tags:controlling,costing,material_ledger

AverageUserRating
(8ratings)

6Comments
JoseReddyMay19,20148:03PM

DearManish,

ThanksforsharingthevaluableinformationrelatedtosavingtimeforperformingrunslikeCKMLCP,
CK40Netc.Thewayyoudraftedthedocumentisveryimpressive.
Letmeadmit,IdonormallyprocesseitherCKMLCPorCK40Ninstepbystepmodeonly.Ihavejust
gonethroughthedocumentandnotyettriedbasedonyourdocument,ifitreallysavestime,itwill
obviouslyhelpstopleasetheclientintermsofperformanceofthesystem.

Regards....
Jose
Like(1)

ManishSharmaMay19,20149:00PM(inresponsetoJoseReddy)

DearJose,

Thanksforyourvaluablecomments.

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