Material master upload through LSMW Direct Input method in SAP

Standard Batch/Direct Input LSMW for mass update in Material Master  Using Batch input recording LSMW did not succeed because in Material master, materials have multiple views, which varied according to the Production and MRP Types. Hence, the Batch input recording did not work as the Views of material master (such as accounting views) selected while [...]

By |2019-02-21T17:40:50+00:00February 21st, 2019|SAP Costing|0 Comments

Activity Based Costing in SAP

Activity Based Costing ABC is more accurate costing methodology Focus on indirect cost (Overheads) Traces rather than allocate each expenses category to particular cost object Makes “Indirect expenses” “direct” Steps in ABC  Identify the activities Determine cost for each activities Determine cost drivers Collect activity data Calculate product cost How ABC works in SAP  SAP [...]

By |2019-02-20T16:22:25+00:00February 20th, 2019|SAP Costing|0 Comments

How to get actual consumption of raw materials in SAP (Distribution of physical inventory difference over FG productions)

Actual Consumption of raw materials in SAP (Distribution of physical inventory difference over FG productions) Objective: The actual consumption of raw materials in production planning module in SAP always gets the consumption quantity from BOM of the SFG/FG. However the actual consumption quantity or RM would always be different than the standard consumption as per [...]

Alternate Job work Processes in SAP to suit Purchase Production & Costing

  For the regular Sub contracting processes in the Mixing plants we have 3 vendors where the sub-contracting process is being performed, the SAP Standard sub-contracting processes is being followed in current practice, here the business users are facing following challenges; The Inventory in SAP system showing as the Vendor Stock without any storage location, [...]

By |2019-01-09T12:18:27+00:00January 9th, 2019|Job work processes in SAP|0 Comments

New Product Pricing

New product pricing for any new product specification as shared by the R&D Department is to be carried out by the Costing Team following are processes being followed for the same: The entire new product pricing currently being done in large and heavy excel Files with multiple formulae and checks into it. Which seem to [...]

By |2019-01-09T11:43:50+00:00January 9th, 2019|Uncategorized|0 Comments

Export sales and Stock Valuation in SAP System

Facts of the Topic: The export sales from any manufacturing locations or depot. Gets posted in SAP system at the time of dispatch of the material from the source locations: Following accounting entries gets generated. For: Delivery: COGS A/c Dr. To FG Inventory A/c Cr. For: Billing: Customer A/c Dr. To Sales Revenue A/c. Cr [...]

By |2018-08-30T09:03:17+00:00August 30th, 2018|Uncategorized|0 Comments