Sap co stepbystep config & user manual part 2

CO Integrated Training Program
Book- 2 / 2
(Version 16-1)
Trainer & Author:
© Srinivasa Kasireddy
+91-9959765211
Skype : srinivas3d
Date printed : 5 April 2022
File Name : SAP CO_stepbystep config & user manual Part 2

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Table of Contents:
1. CO-PA Valuation-2................................................................................................................................................15
Valuation using Mat. Cost Estimates..........................................................................................................15
1. Settings...................................................................................................................................................................15
1. Define and Assign Valuation Strategy:.............................................................................................15
2. Define Access to Standard Cost Estimates...................................................................................16
3. Assign Costing Keys to Products........................................................................................................16
4. Assign Value Fields....................................................................................................................................16
2. Enduser...................................................................................................................................................................17
1. Maintain condiiton record ........................................................................................................................17
2. Creating Sales order..................................................................................................................................17
3. Production Receipts...................................................................................................................................17
4. Delivery of goods to customer..............................................................................................................18
5. Billing document...........................................................................................................................................18
6. Display Billing document..........................................................................................................................18
7. Simulate Biling Document Transfer ...................................................................................................19
8. Post Billing Documents Subsequently..............................................................................................19
9. Display CO line tems.................................................................................................................................20
2. CO-PA Valuation3 (for Incoming orders)................................................................................................21
1. Settings:..................................................................................................................................................................21
3. Activate Transfer of Incoming Sales Orders.................................................................................22
2. Enduser:..................................................................................................................................................................22
1. Creating Sales order..................................................................................................................................22
2. Display CO-PA line items........................................................................................................................22
3. Simulation of Document Transfer from Incoming Sales Orders.........................................22
4. Post Sales Orders Subsequently........................................................................................................23
3. Multiple Valuation Approaches/Transfer Prices....................................................................................24
4. Actual Costing/Material Ledger......................................................................................................................27
1. Settings...................................................................................................................................................................29

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1. Activate Valuation Areas for Material Ledger ...............................................................................29
2. Assign Currency Types to MaterialLedger Type.........................................................................29
3. Assign Material Ledger Types to Valuation Area .......................................................................30
4. Maintain Currency and Valuation Profile.........................................................................................30
5. Assign Currency and Valuation Profile to Controlling Area...................................................31
6. Maintain Currency and Valuation Profile.........................................................................................31
7. Create Versions for Valuation Methods...........................................................................................33
8. General Version definition........................................................Error! Bookmark not defined.
9. Multiple Valuation Approaches: Check/Execute Activation...................................................33
10. Maintain Number Ranges for Material Ledger Documents ..............................................33
11. Configure Dynamic Price Changes...............................................................................................34
12. Define Material Update Structure...................................................................................................35
13. Assign Material Update Structure to a Valuation Area........................................................35
14. Activate Actual Costing........................................................................................................................35
Control of Credit of Cost Centers: Closing entries of the periodic costing run.....................36
Control of Credit of Cost Centers: Alternative valuation run...........................................................36
15. Activate Actual Cost Component Split .........................................................................................36
16. Check Customizing Settings for the ML......................................................................................36
17. Set Valuation Areas as Productive................................................................................................37
18. Creating GL accounts...........................................................................................................................38
19. Automatic Account Assignment.......................................................................................................39
20. Check Customizing Settings for the ML......................................................................................42
1. MM Enduser.........................................................................................................................................................42
1. Display material Master LAPFG1.....................................................................................................42
2. Change Material Price Determination for FG and SFG(for existing materials)...........44
3. Change Material Price Determination for RM (for existing materials) .............................44
1. Purchase Order Creation:.......................................................................................................................45
2. Goods Receipt for Purchase Order....................................................................................................45
3. Invoice Verification......................................................................................................................................46
4. Displaying material ledger Document...............................................................................................48
5. Change Material master LAPSFG1 ...................................................................................................48
1. PP settings............................................................................................................................................................48

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1. Define order type .........................................................................................................................................48
2. Define order type-dependent parameters.......................................................................................49
3. Define Control key.......................................................................................................................................50
4. Define Valuation of Goods Received................................................................................................51
5. Define Scheduling Parameters for Production Orders...................Error! Bookmark not
defined.
6. Define Confirmation Parameters.........................................................................................................51
7. Define Checking Control..........................................................................................................................52
2. Enduser...................................................................................................................................................................53
1. Make sure standard cost estimates released...............................................................................53
2. Create BOM LAPFG1................................................................................................................................53
3. Create BOM LAPSFG1 ............................................................................................................................54
4. Create BOM LAPSFG2 ............................................................................................................................54
5. Displaying BOM Level by Level ...........................................................................................................54
6. Creating Production order .......................................................................................................................54
7. Display Production Order ........................................................................................................................56
8. Create Purchase order for Exteranl activity PCKG....................................................................57
9. Inv verification................................................................................................................................................58
10. Production Order Confirmation for LAPSFG1..........................................................................58
Problem : Stor. Location is blank and not in edit mode..............................................................60
RM issue to Production order for LAPSFG1...........................................................................................60
11. Display goods movements for production order.....................................................................61
12. Display activity consumption in CC ...............................................................................................61
13. Material price analysis LAPRM1 and LAPSFG1....................................................................63
14. Reprocessing(incase of errors in Production Order Confimation)................................64
Error : Plant data of the material Xxxx is locked by the user xx..................................................64
Error : Enter Stor. Location ..............................................................................................................................64
Error : Check table TFBEFU_CR entry 10 does not exist...............................................................65
15. Display costs..............................................................................................................................................65
16. Display Settlement rule........................................................................................................................65
Production Receipts for Production Order LAPSFG1........................................................................65
17. Production Order Confirmation for LAPSFG2..........................................................................66

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Problem : Stor. Location is blank and not in edit mode..............................................................67
RM issue to Production order for LAPSFG2...........................................................................................68
18. Display goods movements for production order LAPSFG2..............................................69
19. Material price analysis LAPRM2 andLAPSFG2 .....................................................................69
21. Display costs..............................................................................................................................................71
22. Display Cost Center Actual Line items........................................................................................71
23. Cost Centers :Actual/Plan/Variance..............................................................................................71
Production Receipts for Production Order LAPSFG2........................................................................72
25. Production Order Confirmation for Assembling/ LAPFG1.................................................73
26. Production Order Confirmation final/ LAPFG1 ........................................................................73
27. Display goods movements for production order.....................................................................74
29. Cost Centers :Actual/Plan/Variance..............................................................................................75
30. Display costs..............................................................................................................................................76
32. Material price analysis LAPFG1......................................................................................................76
2 FI/CO Enduser.....................................................................................................................................................77
1. Display CostCenter reports....................................................................................................................77
2. Posting expenses to CC...........................................................................................................................77
3. Activity Splitting.............................................................................................................................................77
4. Calculating Actual Activity price...........................................................................................................77
5. Display activity prices ................................................................................................................................77
6. Revaluation of Production order at Actual prices .......................................................................78
7. Display Cost center report......................................................................................................................78

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8. Set status ‘Technically complete’ to prod order...........................................................................78
9. Settlement of Production order LAPFG1 .......................................................................................79
10. Internal error in FORM/FUNCTION get_prkexx(saplckmo) in position 10 with RC
81
11. Prod Order settlement LAPSFG1...................................................................................................81
12. Prod Order settlement LAPSFG2...................................................................................................82
13. Material Price Analysis before Costing Run .............................................................................83
14. Create Condition record ......................................................................................................................83
15. Sales order.................................................................................................................................................83
16. Delivery.........................................................................................................................................................83
17. Display material price analysis.........................................................................................................84
18. Billing .............................................................................................................................................................84
19. Display COPA line items.....................................................................................................................84
20. Display Material Master .......................................................................................................................84
21. Close Material period (Period end activity)................................................................................85
22. Edit Costing Run......................................................................................................................................85
Material Price Analysis after Single-Level Pr.Determination..........................................................87
Material Price Analysis after Multi-Level Pr.Determination.............................................................89
Manual Change of Actual Cost Component Split ..............................................................................90
23. Displaying Cost Components for Price........................................................................................95
24. Display Actual Cost Component Split.........................................................................................95
25. Releasing Planned Prices ..................................................................................................................95
26. Displaying ML document.....................................................................................................................95
5. CO-PA Valuation-4(Periodic Valuation)......................................................................................................96
1. Settings...................................................................................................................................................................96
2. Define Access to Actual Costing/Material Ledger ......................................................................96
4. Assign Value Fields....................................................................................................................................97
2. Enduser...................................................................................................................................................................98
1. Periodic Valuation........................................................................................................................................98
2. Display COPA line items.......................................................................................................................100

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6. CO-PA Summarization Levels.......................................................................................................................101
1. Settings................................................................................................................................................................101
1. Define Summarization Levels :..........................................................................................................101
2. Dispalying Key table and Totals table............................................................................................103
3. Build Summarization Levels :.............................................................................................................104
4. Displaying Key table and Totals table............................................................................................104
7. CO-PA Reports.....................................................................................................................................................105
1. Define Forms for Profitability Reports............................................................................................105
2. Create Profitability Report....................................................................................................................107
8. Cost Object Controlling...................................................................................................................................108
Result Analysis :..................................................................................................................................................108
Work-in-process(WIP):....................................................................................................................................108
Reserve for Unrealized costs: :...................................................................................................................109
Variance:.................................................................................................................................................................109
WIP /Variance calculation for Product costing by order and Product costing by period
......................................................................................................................................................................................109
Control Cost :........................................................................................................................................................109
Target Costs :.......................................................................................................................................................109
Input Variances :..............................................................................................................................................110
Output Variances :.............................................................................................................................................110
Costing sequence :............................................................................................................................................110
a. Preliminary Cost Estimate :.................................................................................................................110
b. Simultaneous costing :...........................................................................................................................110
c. Final Costing :.............................................................................................................................................110
9. Product Cost by Order.....................................................................................................................................112
1. FI settings...........................................................................................................................................................112
1. Creation of GL account WIP..............................................................................................................112
2. Creation of GL account WIP offset................................................................................................113
3. Creation of GL account Price Differences..................................................................................113
2. CO Settings........................................................................................................................................................113
1. Check Valuation Variants for Manufacturing orders(PP) :..................................................113
2. Check Costing Variants for Manufacturing orders(PP) :......................................................115

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3. Define goods received valuation for order delivery(already done).................................115
4. Creating secondary cost elements..................................................................................................116
5. Creating secondary cost elements(Settlment)..........................................................................116
6. Define Result Analysis Key.................................................................................................................116
7. Define Result Analysis Versions.......................................................................................................117
8. Define Valuation Method(Actual Costs)........................................................................................117
9. Define Line IDs...........................................................................................................................................118
10. Define Assignment..............................................................................................................................118
11. Define Update........................................................................................................................................121
12. Define Posting rules for settling Work in process ............................................................121
13. Define Result Analysis Versions..................................................................................................122
14. Define Variance Keys ........................................................................................................................122
15. Define Default Variance Keys for Plants .................................................................................123
16. General Version Maintenance in CO-Area.............................................................................123
17. Define Valuation Variant for WIP and Scrap (Target Costs).........................................124
18. Define Target Cost Versions..........................................................................................................124
19. Create Allocation Structure.............................................................................................................126
20. Create Cost Element Group...........................................................................................................128
21. Adding Value fields in Operating Concern(CO-PA setting)...........................................129
22. Create PA Transfer Structure(CO-PA setting).....................................................................130
23. Create Settlment Profile ...................................................................................................................133
24. Create No. Range intervals for Bus Transactions KZPI..................................................134
25. Creating GL account Prod-Variance..........................................................................................134
26. Automatic Account Assignment....................................................................................................135
27. Activate Actual Costing(Change Activty update setting).................................................135
3. PP Settings.........................................................................................................................................................136
1. Define Order Type :.................................................................................................................................136
2. Define order type-dependent parameters....................................................................................137
Define Cost-Accounting-Relevant Default Values for Order Types and Plants ................137
3. Define Scheduling Parameters for Production Orders..........................................................138
4. Define Confirmation Parameters......................................................................................................138
5. Define Checking Control.......................................................................................................................139

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4. PP Enduser.........................................................................................................................................................140
1. Creating Origin Groups..........................................................................................................................140
2. Assign Origin groups and Material Origin indicator in Material master ......................141
3. Maintain planned scrap in BOM LAPSFG1 ................................................................................141
4. Maintain planned scrap in BOM LAPSFG1 ................................................................................141
5. Check the period close..........................................................................................................................142
5. CO Enduser........................................................................................................................................................142
6. Create cost estimates.............................................................................................................................142
6. MM Enduser......................................................................................................................................................142
1. Assign Variance Key in the material master.............................................................................142
2. Purchase Order Creation:....................................................................................................................142
3. Goods Receipt for Purchase Order.................................................................................................143
4. Invoice Verification...................................................................................................................................143
5. Purchase Order Creation(Different vendor)................................................................................144
7. PP Enduser.........................................................................................................................................................146
1. Creating Production order ....................................................................................................................146
2. Display Production Order .....................................................................................................................148
3. Production Order Confirmation for LAPSFG1 ...........................................................................148
Problem : Stor. Location is blank and not in edit mode...........................................................149
4. Display goods movements for production order.......................................................................149
5. Display activity consumption in CC.................................................................................................150
6. Material price analysis LAPRM1 and LAPSFG1......................................................................151
7. Reprocessing(incase of errors in Production Order Confimation)..................................152
Error : Plant data of the material Xxxx is locked by the user xx...............................................152
Error : Enter Stor. Location ...........................................................................................................................152
Error : Check table TFBEFU_CR entry 10 does not exist............................................................153
8. Display costs...............................................................................................................................................153
9. Display Settlement rule..........................................................................................................................153
10. Production Order Confirmation for LAPSFG2.......................................................................153
11. Display goods movements for production order LAPSFG2...........................................154

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12. Material price analysis LAPRM2 andLAPSFG2 ..................................................................155
13. Reprocessing(incase of errors in Production Order Confimation).............................156
14. Display costs...........................................................................................................................................156
15. Cost Centers :Actual/Plan/Variance...........................................................................................157
16. Display Settlement rule.....................................................................................................................157
17. Production Order Confirmation for Assembling/ LAPFG1..............................................158
18. Production Order Confirmation final/ LAPFG1 .....................................................................158
19. Display goods movements for production order..................................................................159
22. Display costs...........................................................................................................................................161
24. Material price analysis LAPFG1...................................................................................................161
25. Create Production order ...................................................................................................................161
28. Display activity consumption in CC ............................................................................................165
29. Material price analysis LAPRM1 and LAPSFG1.................................................................165
31. Display costs...........................................................................................................................................167

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34. Display goods movements for production order LAPSFG2...........................................169
35. Material price analysis LAPRM2 andLAPSFG2 ..................................................................170
37. Display costs...........................................................................................................................................171
40. Production Order Confirmation for Assembling/ LAPFG1..............................................173
41. Production Order Confirmation final/ LAPFG1 .....................................................................173
45. Display costs...........................................................................................................................................176
47. Material price analysis LAPFG1...................................................................................................176
48. Reports for Product Cost by Order ..........................................................................................176
8. FI Enduser...........................................................................................................................................................177
1. Posting expenses to CC........................................................................................................................177
9. CO Enduser........................................................................................................................................................177
1. Activity Splitting(Month End Activity)..............................................................................................177
2. Calculating Actual Activity price (Month End Activity) ...........................................................177
3. Display activity prices .............................................................................................................................177
4. Prod Order Cost Analysis.....................................................................................................................178
5. Revaluation at Actual prices(Month end activty)......................................................................178
6. Cost center report.....................................................................................................................................179
7. Overhead Calculation for Production Order(Month End Activity)....................................179

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8. WIP Calculation(Month End Activity) .............................................................................................180
9. Line items for WIP/Result Analysis................................................................................................181
10. Set status ‘Technically complete’ to prod order ...................................................................181
11. Variance Calculation ..........................................................................................................................182
12. Production Order Settlement(Month End Activity)..............................................................184
14. Line items for Variances..................................................................................................................185
15. Prod Order Cost Analysis................................................................................................................185
16. MM Period Closing..............................................................................................................................185
17. Edit Costing Run...................................................................................................................................185
10. MM Enduser (Next month)...................................................................................................................185
6. Purchase Order Creation:....................................................................................................................185
11. PP End user(Next period)......................................................................................................................188
3. Production Order Confirmation for Assembling/ LAPFG1 ..................................................190
4. Production Order Confirmation final/ LAPFG1..........................................................................191
12. FI Enduser (Next period)........................................................................................................................191
1. Posting expenses to CC........................................................................................................................191
13. CO Enduser...................................................................................................................................................191
1. Activity Splitting(Month End Activity)..............................................................................................192
2. Calculating Actual Activity price (Month End Activity) ...........................................................192
3. Display activity prices .............................................................................................................................192
4. Revaluation at Actual prices ...............................................................................................................192
5. Cost center report.....................................................................................................................................193
6. Overhead Calculation for Production Order(Month End Activity)....................................193
7. Set Production Order Status to TECO..........................................................................................194
8. WIP Calculation(Reversing WIP)(Next month).........................................................................194
9. Variance Calculation for Production Order(Month End Activity)(next month) ..........195
10. Production Order Settlement(Next month) .............................................................................197

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12. Line items for Variances..................................................................................................................198
13. Line items for WIP/Result Analysis ...........................................................................................198
14. Prod Order Cost Analysis................................................................................................................198
15. Display CO-PA line items ................................................................................................................198
16. MM Period Closing..............................................................................................................................198
17. Edit Costing Run...................................................................................................................................198

Introduction
This book is vol-2 of 2 volumes
This book was initially a set of tutorials taught by me during class room training. After gradual
development over the years, now it has become a complete configuration guide/ end-user manual for
SAP CO module. Obviously this book is more a practical guide than a reference book even though
some info stuff has been inserted at some places.
Having taught the SAP FICO course to hundreds of beginners and experienced at various institutions,
I know the kind of problems and questions you will have when learning this module.This book is full of
detailed step-by-step procedures with necessary screen shots and sample configurations.
Having worked as a SAP Consultant at various organizations, I know the kind of requirements that
may arise at clients. To this end, most of the business processes and underlying concepts have been
explained thoroughly through out the book.
By understanding the how and whys, you will start gaining basic knowledge which reaches to
advanced level with in no time.
As you go through the material, if you have problems or questions please do mail me. If you find an
error in this book, or suspect there may be an error, kindly notify .
I hope you will find using this book as enjoyable.
Conventions Used in This Book
‘’ indicates a next thing in navigation or next action
‘----- button’ means to hit the button . For example ‘ Position button’ means ‘to hit Positon button’.
‘:’ is followed by the value/text to be entered
Multiple inputs/input values in a single screen are shown in the form of table.
How to use the book
Just read line by line and follow the instructions. Refering to screen shots makes your job
easy . Please refer to Info boxes for additional info.

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1. CO-PA Valuation-2
(In this chapter we are going to configure Valuation using Mat. Cost estimates)
Valuation using Mat. Cost Estimates
Valuation using Mat. Cost Estimates is used to determine COGM /COGS with material cost
estimate rather than with the standard price in the material master. The material cost
estimate can be either planned cost estimate from Product Cost Planning or Actual cost
calculated in Actual costing/ML .
With Out valuation 
COGS/COGM is determined from Material master standard price
Cost component split is not possible
With Valuation
COGS/COGM is determined from Planned cost estimate
Cost component split is possible
COGS/COGM is determined from Actual cost estimate
Cost component split is possible
(In this chapter we are going to configure Valuation using Planned. Cost estimates from
Product Cost Planning)
1. Settings
1. Define and Assign Valuation Strategy:
SPROControllingProfitability AnalysisMaster Data Valuation Valuation
StrategiesDefine and Assign Valuation Strategy
Operating concern : LAP1
Enter
Select Val.strat ‘001’ Online Valuation Actual
Double click on Details folder
New Entries
sequence Appl Costg sheet Mat.cstg Qty.field
2  VVIQT
Double click on Assignment of Valuation strategy folder

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New Entries
PV Rec. Plan ver Val .strat Name
01 F 001
Save
2. Define Access to Standard Cost Estimates
Same path upto Valuation
Set Up Valuation Using Material Cost EstimateDefine Access to Standard Cost
Estimates
Select Cstg key ‘I10’
Copy as button
Costing key : LAP LAP mat cost
Costing Variant LAP1 Standard Cost Est. LAP
Enter
Save
3. Assign Costing Keys to Products
Same path
Assign Costing Keys to Products
New Entries
PV RecT. Plan ver Material Valid to C key1
01 F LAPFG1 LAP
Save
4. Assign Value Fields
Same path
Assign Value Fields
Cost component structure : L1
Enter
New Entries
PV CCo F/V Fld name1 Fld name2 Fld name3
01 010 2 VV150

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01 050 3 VV400
01 070 3 KWSGEK
01 080 3 VV250
Save
2. Enduser
1. Maintain condiiton record
TCode : VK11
Condition type : PR00
Key Combination button
Material with release status
Enter
Sales Organization : LANS
Distribution Channel : LD
Material Amount Valid From Valid to
LAPFG1 63000 1.04.2011 31.03.2012
Save
2. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG1
Qty : 30
3. Production Receipts
Tcode :MB1C
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
Movement Goods ReceiptsOthers
Document date : Todays date
Movement type : 521 (receipt w/o production order into unrestricted use stock)
Plant : LAP1
Storage location : LAP1
…
…

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Enter
Material Qty.
LAPFG1 100
Enter
Text : GR from production
Post
Enter to ignore the warning message
Post
Note down the material document no. 100000360
Other Goods Receipt menuDisplay
Material document : 100000360
Mat. Doc year : 2012
Enter
Accounting Documents button
Double click on Accounting Document
Dr Inventory FG . 49,16.275.00
Cr To Inc/Dec. in stock 49,16,275.00- (=100*49,162.27)
4. Deliveryof goods to customer
Tcode : VL01N
Post goods issue for the above sales order
Picked Qty : 30
5. Billing document
Tcode : VF01
Post a billing document for above Delivery document
6. Display Billing document
Tcode : VF03
Billing document : XXXXXXx
Accounting button
Double click on Profitab. Analysis
Value fields Tab
Value fields Material input , Material Overhead Production costs should be filled with
some value .

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If the above valuefields not calculated , we can do error analysis by Simulating Billing
Document Transfer as shown in the next step , rectify the error and then resend the biling
document to CO-PAusing ‘Post Billing Documents Subsequently’ TCode : KE4S
7. Simulate Biling Document Transfer
SPROControllingProfitability AnalysisToolsAnalysis Simulate Billing Document
Transfer
TCode :KE4ST
Billing Document : XXXXXXXXX
Company Code : LAP
Execute
Select Message type
Valuation button
Result of valuatn tab
‘After Valuation’ column shows the values calculated by valuation function.
8. Post Billing Documents Subsequently
SPROControllingProfitability AnalysisToolsProduction StartupSubsequent
Posting of SD DocumentsPost Billing Documents Subsequently
Tcode : KE4S
Billing Document : XXXXXXXXX
 Test Run
 Create log
Reversal of line items
Execute
Select a Message type
Valuation button

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Result of valuatn tab
‘After Valuation’ column shows the values calculated by valuation function.
Back button twice
Test Run
Execute
9. Display CO line tems
TCode : KE24

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2. CO-PA Valuation3 (for Incoming orders)
In this chapter we are going to configure valuation function for incoming sales orders .
We can transfer sales orders from SD to CO-PAto analyse expected revenues and
anticipated profits. Incoming salesorders can be valuated using cost estimates and costing
sheets
1. Settings:
1. Define and Assign Valuation Strategy:
SPROControllingProfitability AnalysisMaster Data Valuation Valuation
StrategiesDefine and Assign Valuation Strategy
Enter
Select Val.strat ‘004’ Online Valuation Actual Rec.Type A
New Entries
sequence Appl Costg sheet Mat.cstg Qty.field
1 KE LAP1 VV700
2 √ VV700
Double click on Assignment of Valuation strategy folder
New Entries
PV Rec. Plan ver Val .strat Name
01 A 004 Online Valuation Rec. Type A
Save
2. Assign Costing Keys to Products
Upto Valuation same path
Set Up Valuation Using Material Cost EstimateAssign Costing Keys to Products
New Entries
PV RecT. Plan ver Material Valid to C key1
01 A LAPFG1 LAP
Save

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3. Activate Transfer of Incoming Sales Orders
Flow of Actual ValuesIntial StepsTransfer of Incoming Sales Orders Activate Transfer
of Incoming Sales Orders
TCode : KEKF
Position button
CO Area LAP
Enter
COAr Name FromFY OP.concern Inc.SO
LAP 2016 LAP1 1
Save
2. Enduser:
1. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG1
Qty : 10
2. Display CO-PA line items
TCode : KE24
Currency type : 10
Sales order : XXXXXX
Execute
Double click on the line item
Value fields tab
If Profitabilty analysis document is not displayed or value fields are not populated , we can
trace the error by transaction ‘Simulation of Document Transfer from Incoming Sales Orders’
as shown in the next step .
After rectifying the error we can generate CO-PA document by transaction ‘Post Sales
Orders Subsequently’ .
3. Simulation of Document Transfer fromIncoming Sales Orders
SPROControllingProfitability AnalysisToolsAnalysis Simulation of Document
Transfer from Incoming Sales Orders
TCode : KE4TS

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Sales document : XXXXXXX
Execute
Select a message type
Valuation button
Result Valuation tab
4. Post Sales Orders Subsequently
SPROControllingProfitability AnalysisToolsProduction StartupSubsequent
Posting of SD Documents Post Sales Orders Subsequently.
Sales document : XXXXXXXXX
 Test Run
 Log
Check for Existing records
Execute
Select the message
Valution button
Result of Valuation tab
Make a note of ‘After Valuation’ column
Back button
Test Run
Execute

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3. Multiple Valuation Approaches/Transfer Prices
There is always one valuation type which is default. Maximum number of valuations possible
is 3 in is SAP . Legal valuation is the default valuation type . Group valuation and Profit
center valuation are the additional valuation types used optionally
If we want to use multiple valuations , material Ledger is mandatory to be implemented
Valuation type
Legal Valuation
Group Valuation
Profit Centre Valuation
Legal Valuation : Legal Valuation is used for legal reporting . Even the internal sales are
recorded at external sales prices. Used at individual company code level .
Group Valuation : Legal Valuation is used for strategic reporting at group level . The
internal sales are recorded as transfers between company code at COGM prices. Internal
revenue and profit are eliminated.
Profit Center Valuation: Profit centre is a an independent org unit which can be treated as
independent reporting centre for profit/loss . Apart from legal prices and group prices a
special type of prices called transfer prices can also be used to valuate goods movement
between profit centres
If we want to use transfer prices in Profit Center Valuation , material Ledger is mandatory
to be implemented.
Corporate group
Comp Code A Manufactures & Sells cars External Sales
Comp Code B Manufactures & Sells Engines
External Sales
Internal supply

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Legal view :
Comp code B sales (Legal view):
Sale type COGM Sales quantity Price Revenue
External 21,00,000 300 9,000 27,00,000
Internal 7,00,000 100 9,000 900,000
Comp code A sales (Legal view):
External 70,00,000 100 90,000 90,00,000
Total revenue
(Legal view) :
90,00,000+27,00,000+900,000 = 12,600,000
Total COGM
(Legal view) :
70,00,000 + 21,00,000+7,00,000 = 98,00,000
Contribution margin (Legal) 28,00,000
Group View:
Comp code B sales (Group view):
External 21,00,000 300 9,000 27,00,000
Internal 7,00,000 100 7,000 700,000
Comp code B sales (Group view):
External 68,00,000 100 90,000 90,00,000
Total revenue
(Group view) :
90,00,000+27,00,000 = 11,700,000
Total COGM
(Group view) :
68,00,000 + 21,00,000 = 89,00,000
Contribution margin (Group view) 21,00,000

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.
Note: In currency and valuation profile we define a maximum of 3 combinations of valuation
view and currency type. The valuation view and its associated currency type are combinedly
called a valuation approach.
Eg : Profit centre view /Group currency can be one valuation approach.
Only a maximum of 2 currency types can be used even if we use 3 valuation approaches.
i.e. 2 valuation views of the three must use the same currency.
A currency and valuation profile can have three valuation approaches like the below.
Valuation view Currency type
0(legal) 10 (comp code currency
1(Group) 30 (Group currency)
2(Profit centre) 30 (Group currency)

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4. Actual Costing/Material Ledger
The component Actual costing/ Material Ledger has two subcomponents Actual Costing and
Material ledger.
Actual costing : Actual costing calculates an actual price (periodic unit price) for each
material, The actual price includes all actual costs for a particular period . The actual costing
uses actual costs to valuate inventories of raw materials, semifinished products, and finished
products.
Material ledger : Material ledger is used to manage inventories in multiple currencies and
/or perform multiple valuations. The material ledger enables the system to manage inventory
values in three currencies/valuations. If the material ledger is not active, you only maintain
the valuation prices in company code currency with legal valuation.
Material ledger and multiple valuations
It is mandatory to implement ML if we want to use multiple valuations. But ML can be
implemented with out using multiple valuations.
Material ledger with and w/o multiple valuations
ML with multiple valuations ML w/o multiple valuations
If multiple valuations are used ML valuates
the materials in upto 3 valuation views with
2 currencies
Eg1:
Legal valuation/Comp code currency
Group valuation/Group currency
Profit center valuation/Group currency
Eg2:
Group valuation/Group currency
Profit center valuation/ Comp code
currency
Eg3:
Group valuation/ Comp code currency
Profit center valuation/ Comp code
currency
If multiple valuations are not used ML just
store the material prices/stock values in upto 3
currencies
Eg1:
Comp code currency
Group currency
Hard currency
Eg2:
Comp code currency
Group currency
Index based currency
Used for parallel valuations. Material
price/stock is valuated separately and
stored in the specified currency.
Used if we want to store/display material
price/stock/transactions in multiple currencies.
Ie .It is a mere translation of price/ stock into
different currencies at historical exchange rate

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Image : Accounting 1 view of Material master

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1. Settings
(Make sure qty update and price update is active before activating the material legder for
plant)
1. Activate Valuation Areas for Material Ledger
SPROControlling Product Cost Controlling Actual Costing/Material Ledger Activate
Valuation Areas for Material Ledger
Double click on Check Material Ledger settings
Plant : LAP1
Display accounts 
Execute
Next page button/Scroll down(To display various settings that are related with ML)
Back button
Double click on Activate Material Ledger
Position button
Valuation area: LAP1
Company code : LAP
Enter
Valuation
Area
Company
Code
ML Act Price
Deter.
Price Det. is Binding in Val
Area
LAP1 LAP  3 .
LAP2 LAP  3 .
LAP3 LAP  3 .
Save
Enter to ignore the message
( Msg : After activating material ledger, live data must be converted)
Continue
2. Assign Currency Types to MaterialLedgerType
TCode :OMX2
Same path
Assign Currency Types to Material Ledger Type
New Entries

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ML Type CT from FI CO CrcyTyp Manual Description
LAP1 . .  ML type for LAP
Save
Continue
Select LAP1
Double click on ‘Define individual Characteristics’ folder
New Entries
Crcy type Short Description
31 Group currency, group valuation
Save
3. Assign Material Ledger Types to Valuation Area
SPROControlling Product Cost Controlling Actual Costing/Material Ledger Assign
Material Ledger Types to Valuation Area
Tcode : OMX3
Position button
Valuation area: LAP1
Enter
Valuation area Mat ledger type
LAP1 LAP1
LAP2 LAP1
LAP3 LAP1
Save
Continue
We must assign all valuation areas (plants) in the company code to the same Material ledger
type.
4. Maintain Currencyand Valuation Profile
SPROControllingGeneral ControllingMultipleValuation Approaches/Transfer
PricesBasic SettingsMaintain Currency and Valuation Profile
Tcode: 8KEM
New entries

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C+V prof Text
LAP1 LAP Group Valuation Profile
Save
Continue
Select ‘LAP1’
Make note of currency type ‘10’ valuation view ‘ Legal Valuation’
5. Assign Currency and Valuation Profile to Controlling Area
TCode :8KEQ
Upto Basic Settings same path
Assign Currency and Valuation Profile to Controlling Area
Position button
CO Area : LAP
Enter
Co Area C Crcy CC C+V Prof
LAP 2 INR 10 LAP1
Save
Continue
6. Maintain Currencyand Valuation Profile
PricesBasic SettingsMaintain Currency and Valuation Profile
Tcode: 8KEM
Select ‘LAP1’
New Entries
No C Text Valuation View
20 30 Group currency Group Valuation
Save
Caution :

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Scenario1 : Multiple Valuation Approaches/Transfer Prices is activated for the CoArea
The order of currency types in Currency / Valuation Profile must match with Currency
Types of Material Ledger Type as shown in the following image .
Scenario2 : Multiple Valuation Approaches/Transfer Prices is not activated for the CoArea
Do not use Crcy types like 12 ,31 (which are only to be used for valuation) in the Material
Ledger Type . Instead Crcy types like 30 ,40 ,50 can be used as shown in the following
image

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7. Create Versions for Valuation Methods
Note : Alternatively Versions can be maintained using the following path
SPROControllingGeneral ControllingOrganizationMaintain versions
Same path
 Create Versions for Valuation Methods
New Entries
Version Plan/Actual version Plan Actual WIP/RA Variance Exclusive use
909 Group valuation .    0
999 Proft center valuation .    0
Save
Continue
8. Multiple Valuation Approaches: Check/Execute Activation
TCode :8KEP
PricesActivationMultiple Valuation Approaches: Check/Execute Activation
Controlling Area : LAP
Check activation
Execute
Enter to ignore warning messages
(Check currency related settings )
Back button (if no errors)
Activate in controlling area
Execute
Enter ( to ignore the warning messages)
Activate button
9. Maintain Number Ranges for Material Ledger Documents
TCode :OMX4
SPROControlling Product Cost Controlling Actual Costing/Material Ledger
Maintain Number Ranges for Material Ledger Documents
Double click on Number Ranges for Material Ledger Documents
…
…
…
…

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Maintain Groups button
 ML update
Interval menuMaintain
(Maintain number interval here , if there is no interval)
Back button
 ML closing
Interval menuMaintain
(Maintain number interval here , if there is no interval)
(Repeat the procedure for all groups)
Save
Double click on Maintain Financial Accoutning Document Types
Double click on document type ‘ML’
(Note down the number range ie 47)
Double click on Accounting Document Number Ranges
(Create Number interval for number range 47)
10. Configure Dynamic Price Changes
Same path
Configure Dynamic Price Changes
Position button
Valuation Area : LAP1
Enter
ValArea Company code Price Release
LAP1 LAP blank
LAP2 LAP blank
LAP3 LAP blank
Save
Continue
Price
release
Manual price update TCode : CKME
Dyanmic price update : Price is updated automatically when the first material
transaction happens in a period

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11. Define Material Update Structure
Same path upto Actual Costing/Material Ledger
Material Update Define Material Update Structure
Select Material Update Structure ‘0001’
Double click on Material Update Categories
(Make note of different categories)
12. Assign Material Update Structure to a Valuation Area
Up to MaterialUpdate same path
Assign Material Update Structure to a Valuation Area
(By default 0001 is assigned to valuation areas LAP1, LAP2 and LAP3)
13. Activate Actual Costing
Update of activity consumption ::
'0' = Update is not active
'1' = Update is active but not relevant to price
determination.
Revaluation of Production order at Actual
prices(CostObj controlling) is required
'2' = Update is active and relevant to price
determination
Plan actual variances of cost center are
debited to the material when calculating
actual prices of activities. Revaluation of
Production order at Actual
prices(CostObj controlling) is not
required
Up to Actual Costing/Material Ledger same path
Actual Costing Activate Actual Costing
 Double click on ‘Verify Settings for Actual Costing’
Plant : LAP1
Execute
Double click on ‘Activate Actual Costing’
Postion button
Plant : LAP1
Enter

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Plant Name1 Act. costing ActAct CreditCCt
LAP1 
LAP2 
LAP3 
Save
Continue
ActAct : This setting determines how activity consumption is updated in actual qty structure
in Cost Object Controlling &Actual costing
0 update not active
1 update active but not
relevant to price
determination
'Revaluation at actual prices' during period closing for Cost Object
Controlling is to be performed
2 update active and
relevant to price
determination
Variances between the activity
type prices posted during the
period and the actual price
calculated at the end of the
period are adjusted
subsequently
'Revaluation at actual prices'
during period closing for Cost
Object Controlling is not required
Control of Credit of Cost
Centers:Closing entries of the
periodic costing run
Control of Credit of Cost
Centers:Alternative valuation
run
Note : This setting should only be changed at month end but not during the month. If Cost
Obj Controlling is implemented use ‘1’ other wise use ’2’ .
14. Activate Actual Cost Component Split
Same path
Valuation Area Company Code ActCstCmpSpltActive
LAP1 LAP 
LAP2 LAP 
LAP3 LAP 
Save
Continue
15. Check Customizing Settings for the ML

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SAP Easy AccessAccountingControllingProduct Cost Controlling Actual
Costing/Material LedgerEnvironment Check Customizing Settings
TCode :CKM9
Plant : LAP1
Display Accounts .
Execute
Scroll down to Currency
(Make sure the currency settings are correct before going to next step ie Set Valuation Areas
as Productive)
Repeat the process for all valuation areas
16. Set Valuation Areas as Productive
Costing/Material LedgerEnvironment Production Startup Set Valuation Areas as
Productive
Tcode : CKMSTART
Caution :
After setting up the valuation area as productive, no changes are possible in the currencies
, currency types or material ledger types. Before that make sure that currency settings are
currect in Financial Accounting and ML .
Note :
Any materials created before setting valuation area to productive will have Price
determinatin 2 in their material master. We can change the Price determination to 3 using
TCode CKMM as shown in enduser part

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Plant : LAP1
Back groung job processing
 Test run
Execute
Test run
Execute
Repeat the process for plants LAP2 and LAP3.
Error: Cost component structure for period 006 / 2016 in plant LAP1 not found
Solution : Create planned cost estimate for the said period
17. Creating GL accounts
Transaction Modifier GL account
Val
class

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Purchasing,
Stock
Movement,
Production
PRD
Cost
(Price)differences
-
Price Diff-
Purchasing
400407
PRF Prod-Variance 400505
PRA Price-Diff GI
PRU
Price-Diff
Transfer
MAC Prod-Variance 400515
ML Closing
(Single Level)
PRY
Cost
(Price)differences
(material . ledger )
- Price Diff-SLvl LAP3 400302
-
Price Diff-
PurchasingML
LAP1 400303
PRF Prod-Variance
PRA Price-Diff GI
PRU
Price-Diff
Transfer
PSL
Write off SLvl
Price Dif
LAP3 400601
PNL
Offsetting-
Price dif from L
Lvl
LAP2 400504
ML Closing
(Multilevel)
PRV
Material . ledger
fr.low.levels price
diff.
-
Price Diff from
Lower level
blank 400609
PRF Prod-Variance
PRA Price-Diff GI
PRU
Price-Diff
Transfer
GBB
AUI Activty price
variance
LAP2 400510/costlemnt
LAP3 400510
ML Closing
(Release
Future Price)
UMB
Gain/Loss from
revaluation
-
Gain/Loss
from
revaluation
400502
ML Closing
(W/O
Revaluation)
LKW
Accruals and
defer.acct(material
ledger)
-
ML Provision
All the above GL accounts are to be created as P/L accounts except ML Provision a/c which
is to be created as BS account.
18. Automatic Account Assignment

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Tcode : OBYC
Double click on Transaction ‘PRV’ ie Material ledger fr low. Levels price dif
Chart of accounts : LACA
Enter
Save
Account
400609
Save
Continue
Info :
PRA – For goods issue and other movement types 201,261
PRF – For GR against production order and order settlement
PRV- For movement type 301 (plant to plant)
PRY – Price Difference account ( Material Ledger )
PRV – Material Ledger Adjustment Account –
COC ( or LKW )-Revaluation of Consumption ( Material Ledger ) -
Back button
Double click on Transaction ‘PRY’ ie Cost (price) differences (Mater.ledger)
Enter
General modification 
Valaution modif. 
Valuation class 
Save
Valuation modif General modification Valuation class Account
X - LAP1 400303
X - LAP3 400302
X PNL LAP2 400504
X PSL LAP3 400601

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PRA
PRF
PRU
Save
Continue
Double click on Transaction ‘PRD’ ie Cost (price) differences
Enter
Valuation class 
Save
X blank LAP1 400407
x PRF LAP3 400505
X PRF LAP2 400505
Save
Continue
Double click on Transaction ‘GBB’ ie Cost (price) differences
Enter
Valuation class 
Save
X AUI LAP2 400510
X AUI LAP3 400510

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Save
Continue
Back button
Double click on Transaction ‘LKW’ ie Accruals and defer. Acct (material ledger)
Enter
Save
Account
Save
Continue
19. Check Customizing Settings for the ML
Costing/Material LedgerEnvironment Check Customizing Settings
TCode :CKM9
Plant : LAP1
Display Accounts 
Execute
Scroll down to ‘Accounts for Valuation Area’
(Check the account assignment)
Repeat the process for all valuation areas
(Make sure actual cost component split is on)
1. MM Enduser
1. Display material Master LAPFG1
Tcode : MM03
Material : LAPFG1
Select View(s) button
Select Accounting 1
Org. Levels button
Plant : LAP1
Enter

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(Standard price should be displayed in multiple currencies, ML act shoud be active)
Error : Material ledger currencies were changed
Reason : If any currency settings are changed after activating the ML the above error can
arise
It is not possible to deactivate material ledger if any material movement data exists in the
valuation area ie plant.
(Check material master of SFGs and RMs . Make sure ML is active for all)
Problem : ML not activated for a material
Solution : Check whether qty update and value update is active in material type

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2. Change Material Price Determination for FG and SFG(for
existing materials)
Info : Price determination can not be changed in material master directly . It can be changed
in the following way.
SAP Easy AccessAccounting Controlling Product Cost Controlling Actual
Costing/Material Ledger Environment Change Material Price Determination
Tcode : CKMM
Plant : LAP1,LAP2
Valuation Class : LAP3 (FG),LAP2(SFG)
Program Definitions
Old Price Determination : 2
New Price Determination : 3
New Price Control : S
Processing Options
 Test run
Back groung processing
 Save log
Execute
Back button
Test run
Execute
Error : consumption account cannot be determined GBB VBR LAP3
Asign 400590 to GBB VBR LAP3 comination in OBYC
Error : Cost element 400590 is not assigned to a cost component in CostCompStruct 01
3. Change Material Price Determination for RM (for existing
materials)
Tcode : CKMM
Plant : LAP1,LAP2
Valuation Class : LAP1
Program Definitions
Old Price Determination : 2
New Price Determination : 3
New Price Control : S
Processing Options
 Test run
Back groung processing

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 Save log
Execute
Back button
Test run
Execute
4. Purchase Order Creation:
Tcode : ME21N
Vendor : LAPRMVNDR
Enter
Org.Data tab
Purch. Org : LAPO
Purch. Group : LPG
Company Code : LAP
Item Material PO
Quantity
Deliv.
Date
Net
Price
Currency Plnt Stor.
Location
10 LAPRM1 23000 15.08.201 279 INR LAP1 LAP1
20 LAPRM2 30000 15.08.201 369 INR LAP2 LAP2
Enter
Messages button to see any errors
Back button
Check button
Save
Note down the purchase order No. 4500017XX
5. Goods Receipt for Purchase Order
Tcode :MIGO
Up to Material Management same path
Inventory ManagementGoods MovementGoods ReceivedFor Purchase OrderPO
Number Known
Purchase order : 45000171XX Plant : Blank
Enter
Select line ‘1’
Where tab
Storage Location : LAP1
Text : GR

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Quantity tab
Qty in Delivery Note : 23000 KG
√ Item OK
Select line ‘2’
Where tab
Text : GR
Quantity tab
Qty in Delivery Note : 30000 KG
√ Item OK
Check button (‘Document is 0K ‘ msg should come)
Post
6. Invoice Verification
Tcode : MIRO
Invoice date : Todays date
√ Calculate tax
Tax code : V1 4%Input tax
Text : Inv Verifcation
PO Reference Tab
Purchase order/Scheduling agreement 4500017XX Goods/service items
Enter
Select item 1&2
Item Amount Quantity
1 6417000 23000 √
2 11070000 30000 √
Copy the amount in Balance field (red signal)
Paste to Amount field (without –‘ve sign)
Enter
(Red signal should turn into green/yellow signal)
Payment tab
Baseline date : Todays date
Payment term : 0001
Simulate button

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Post button
Invoice Document menu Display
Follow-On Documents button
(Two accounting documents should be displayed one for invoice and one for price difference
posting. And a ML document should be displayed as well)
Double click on Material ledger document( to display it )
Select LAPRM1
Material price analysis button( )
Period/Year : current
View : Price Determination Structure
Info : Alternatively ML document can be displayed as shown in the next step

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7. Displaying material ledger Document
SAP Easy AccessAccounting Controlling Product Cost Controlling Actual
Costing/Material LedgerInformation systemMore Reports Material Ledger Document
TCode:CKMB
Document Number : 100000XX
Document Year : 201x
Enter
Material price analysis button( )
8. Change Material master LAPSFG1
TCode : MM02
Material : LAPSFG1
Enter
Select ‘ ‘MRP4’view
Enter
Plant : LAP1
Stor. Loc. : LAP1
Enter
MRP4 tab
Selection method : blank
Individual/coll : 2 collective requirements only
Save
1. PP settings
1. Define order type
TCode :OPJH
SPROProductionShop Floor ControlMaster DataOrder Define order type

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Select ‘PP01’
Copy As .. button
Order Type LAP1 Standard Production Order (LAP)
Settlement Profile : FA_ABP
Enter
Save
2. Define order type-dependent parameters
Same path
Define order type-dependent parameters.
TCode : OPL8
Position button
Plant : 1000
Order Type : PP01
Enter
Select plant ‘1000’ with Order Type ‘PP01’
Copy as button
Replace plant ‘1000’ with ‘LAP1’
Replace Order Type ‘PP01’ with LAP1
Enter
Planning tab
Operation
Reduction Strategy : Blank
Assignment
Substitute MRP Ctrller : MRP
Substitute Scheduler : MRS
Purchase requisitions
Reservation/Purch.Req. : 3
Cost Accounting tab
Change settings as shown in the following image

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Save
Enter twice to ignore the warning message
Continue
Back button
Select plant ‘LAP1’ with Order Type ‘LAP1’
Copy as button
Replace plant ‘LAP1’ with ‘LAP2’
Enter
Save
3. Define Control key
TCode :OPJ8
Upto Master Data same path
Routing DataDefine Control Key
Double click on ‘PP01’
Aut.goods receipt
 Cost
Back button
Double click on ‘PP02’
 Cost
 Aut.goods receipt

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Save
4. Define Valuation of Goods Received
Upto Shop Floor Control Same path
Integration Define Valuation of Goods Received
Tcode :OPK9
New Entries
Val.Area Company Name Val.Var Name
LAP1 007
LAP2 007
LAP3 007
Save
5. Define Confirmation Parameters
Tcode :OPK4
Upto Operations Same path
Confirmation Define Confirmation Parameters
Position button
Plant : 1000
Order Type : PP01
Enter

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Select plant ‘1000’ with Order Type ‘PP01’
Copy as button
Replace type ‘PP01’ with ‘LAP1’
Enter
Generally Valid Settings tab
Overview button( )
New Entries
Type Control Process
control
AutoGR Backflush Actual Costs
10 LAP1 Immediately
Online
Immediately
Online
Immediately
Online
Save
Continue
Back button
Process Control : LAP1
Back
Select plant ‘LAP1’ with Order Type ‘LAP1’
Copy as button
Enter
Save
Continue
6. Define Checking Control
TCode :OPJK
Upto Operations Same path
Availabiltiy Check Define Checking Control
Position button
Plant : 1000
Order Type : PP01
Enter
Select plant ‘1000’ with Type ‘PP01’ .(Two records Business Function 1&2)
Copy as button

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Replace order type with ‘LAP1’
Enter
Replace order type with ‘LAP1’
Enter
Save
Continue
Select plant ‘LAP1’ with Type ‘LAP1’ .(Two records Business Function 1&2)
Copy as button
Enter
Enter
Save
Continue
2. Enduser
1. Make sure standard cost estimates released
Caution : It is to be make sure that cost estimates has been released for the period . Before
posting any material transactions in the period either release planned cost estimates(If it is
first time) , or actual cost estimates (if not first time) .
The above precaution is to be taken if ‘COPA-Valuation using Mat. Estimates’ functionality
is implemented . If the above functionality is configured and material cost estimates are not
available error ‘No standard cost estimate could be found for material xxxx’ arises
during the release of billing document (VF02) and data is not transferred to COPA.
Error : Price changes for material xxxxx is not possible . Message no. C+811
When Actual costing/ML is active w/o dyanamic price release function, after any material
movements like production receipt or delivery is posted , it is not possible to release the
cost estimates. When you use actual costing / ML, a price must be released before any
goods movement in the period.
TCode : CK13N
(Check ‘Costing Date To’ in Date tab )
2. Create BOM LAPFG1
TCode : CS01
Material : LAPFG1

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Plant : LAP1
BOM Usage : 1 Production
’Copy From’ button( )
Material : LAPFG1
Plant : LAP1
BOM Usage : 6 Costing
Enter
Select the two items
Copy button( )
Save
3. Create BOM LAPSFG1
4. Create BOM LAPSFG2
5. Displaying BOM Level byLevel
SAP Easy Access LogisticsProductionMaster Data Bills of MaterialReporting
BOM ExplosionMaterial BOMBOM Level by Level
Tcode : CS11
Material : LAPFG1
Plant : LAP1
BOM Application : PP01
Execute
Item data button
6. Creating Production order
Info :
Collective order : Collective order is a set of production orders for a FG and all its SFGs .

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When we create a production order for a FG for a specific a quantity , production orders are
generated automatically for all the SFGs involved for the required quanties(based on the
BOM). Production order for a FG is called leading order and suesequent orders generated
for SFGs are called depenendent orders.
Collective
orders
With Automatic
Goods
Movements
Goods movements takes
place from lower level to
higher level of the production
automatically.
For Eg : When SFG are
delivered to stock, goods issue
is posted automatically to
production order of the FG .
Varainces can be
calculated and settled
to CO-PA
Without Automatic
Goods
Movements
No automatic goods
movements happens
Variances can not be
calculated and
therefore settlement
to CO-PA not possible
In our scenario we are using Collective orders With Automatic Goods Movements
SAP Easy AccessLogisticsProductionShop Floor ControlOrderCreateWith
Material
TCode :CO01
Material : LAPFG1
Production Plant : LAP1
Planning Plant : LAP1
Order Type : LAP1
Enter
Total Qty : 300 EA
Dates
Finish (End) : blank
Start : 1 st day of the month
Scheduling
Type : Forwards
Float Bef. Prdn : 1 Workdays
Float After Prdn : 1 Workdays
Release Period : 1 Workdays
Enter
In case of error ,complete error detals can be displayed in error log
Goto menuLogsOverview

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Collective orders Overview button ( )
Select the order (to be dispalyed)
 Order Header button( )
Back buton
Release Order button( )
Save
(Note down the order number 600036XX)
Error 1: Work scheduling data of material is not maintained
Solution: Maintain ‘work scheduling’ view of the material master for FG and SFGs
Tocde : MM50
Plant : LAP1
Material : LAPFG1
Execute
Select ‘A’
Maintain Materials button
Save
Warning Message : No capacity category maintained in work center for scheduling
Solution : to Ignore
7. Display Production Order
Tcode : CO02
Order : XXXXXXXX
Collective order
Enter
Make a note of production order numbers of LAPSFG1 and LAPSFG2

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8. Create Purchase order for Exteranl activity PCKG
Tcode : CO02
Order : XXXXXXXX
Collective order
Enter
Select Main order
Operation overview button( )
Double click Opeation ‘0020’
Ext. Processing tab
Make a note of Purchase Requisition No
TCode : ME58
Purchasing Organization :LAPO
Execute
Select the item
Process Assignment button()
Order Type : NB
Purchase Order Date :
Purchase Order :
Purchasing Group : LPG
Purch. Organization : LAPO
Enter
Select the requisition
Adopt button ( )
Or drag the requisition No. onto cart symbol ( )
Item Overview
Net Price Currency
12 INR
Item Detail
Account Assignment tab
G/L Account : 400501
Cost Center : 1002
Delivery tab
Goods Receipt
…
…

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Save
9. Inv verification
TCode : MIRO
Invoice date : Todays date
Calculate tax
Text : Inv Verifcation
PO Reference Tab
Purchase order/Scheduling agreement xxxxxxxxxx Goods/service items
Enter
Select √ Booking OK for item 1
Enter
Copy the amount in Balance field (red signal)
Paste to Amount field (without –‘ve sign)
Enter
(Red signal should turn into green signal)
Payment tab
Baseline date : Todays date
Payment term : 0001
Simulate button
Post button
Invoice Document menu Display
Follow-On Documents button
Dr LAP RMvendor 3600.00
Cr Packing Charges 3600.00
Error : Account determination for entry LACA WRX X not possible M8147
Solution : Create WRX for a blank valuation class in OBYC
10. Production Order Confirmation for LAPSFG1
SAP Easy Access Logistics Production Shop Floor Control Confirmation Enter
For OperationTime Ticket
Tcode : CO11N
Order No: 600036XX (Enter the order that is created LAPSFG1 )
Enter
Operation 0010
Confirm.type : Final confirmation  Clear open reservations

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Quantities
To be Confirmed Unit
Yield 2100 EA
Scrap
Activities
To be Confirmed Unit R
Machine 21200 H 
Goods Movements button
Enter to ignore the warning msg
(Enter the quantity of RM that is consumed as shown in the table/image )
Material Quantity Units Plant Stor.Loc Movement type

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LAPRM1 22500 KG LAP1 LAP1 261
Warning :
Make sure Stor location is not blank for all goods movements
Problem : Stor. Location is blank and not in edit mode
Solution : Select the line for which Stor loation is blank
Dependent items button( )
Enter storage location
Back button
Save
Error : No price could be determined for internal activity ASMB 0000001002
Solution : Maintain values for activity type and cost center in KP06 and KP26 and perform
price calculation using KSPI.
Save
(Msg : Confirmation saved (Goods movements:1 , failed: 0)
(Instead of entering RM consumption in inconfirmation We can optionally issue RM using
tcode MB1A or MIGO as shown inthe following box)
RM issue to Production order for LAPSFG1
Tcode : MB1A
Document Date : 02.03.201 Posting Date : 02.03.201
’To Order... ‘ button
Order SLoc
600036XX LAP1
Enter

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Material Quantity UnE
LAPRM1 KG
Post
11. Display goods movements for production order
Tcode : CO02/03
Order : XXXXXXXX
Collective order
Enter
Double click on LAPFG1
Goto menuDocumented Goods Movements
( 3 goods movments should be recorded . One is RM-goods issue , the second one is GR
for SFG from production and the third one is SGF-goods issue for next higher production
level . Mvmt Type indicates wether it is goods issue or goods receipt. )
Message : There is no data for the selection Message no. COIS024
Solution : Select check boxes under documentation of goods movement (Implementation
tab ) while maintaining order type dependent parameters TCode : OPL8
Goods movement for production orders entered already before the above correction can be
displayed using Order Information System TCode :COOIS
12. Display activity consumption in CC
Tcode : S_ALR_87013611
(Cost Centers : Actual/Plan/Varaince)
Controlling Area : LAP
Fiscal Year : 201
From Period : 12
To Period : 12
Plan Version : 0
Cost Center Group :
Or value(s) 1001
Execute
(Make sure activity allocation is recorded under Act.costs column and quantity is recorded
under Act. acty column)
…
…

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Note : Make sure activity allocation is recorded under Act.costs column and quantity is
recorded under Act. acty column . If no activity type quantity is recorded check the following
settings
1. Control key (select √ Cost )
2. Satandard Formula (Select √ Used for calculation )
3. Check confirmation parameters
If unable to rectify , them we can manually enter activity allocation to production order using
TCode KB21N
Scrn var. : Order Input Type : List Entry
Send.CCtr SAtyTyp Rec.Order Rec.oper. Total Quantity UM
1001 MCH xxxxxxxxx Blank 21200 H
Post

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13. Material price analysis LAPRM1 and LAPSFG1
TCode : CKM3
Material : LAPRM1
Plant : LAP1
Period/Year : Current
TCode : CKM3
Material : LAPSFG1
Plant : LAP1
Period/Year : Current

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14. Reprocessing(incase of errors in Production Order
Confimation)
Info : Incase of errors in posting of goods movements , goods movements with errors can
bepost post processed .
Reprocessing whole confirmation :- Tcode : CO16N
Reprocessing only Actual costs :- Tocde :COFC
Reprocessing only Goods Movements :- Tocde :COGI
Alternatively we can cancel confirmation using Tcode : CO13 and create again
Logistics  Production  Production Control  Confirmation  Reprocessing  Actual
Costs Reprocessing only Goods Movements
TCode : COGI
Plant : LAP1
Individual Records
Execute
Double click on a material
Look at ‘Error text’ column for possible errors
Error : Plant data of the material Xxxx is locked by the user xx
Solution : Delete the lock using Tcode SM12 .Then save transation in COGI
Error : Enter Stor. Location
Solution : Select the line with the said errorDependent items button( )Enter storage
…
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locationBack button Save
Error : Check table TFBEFU_CR entry 10 does not exist.
Solution :Maintain the setting ‘Define Goods Received Valuation for Order Delivery’ using
tcode OPK9. Bak to COGISave
(Make necessary corrections)
Back button
(Status should be green)
Save
(Msg : x goods movements have been successfully executed)
15. Display costs
Tcode : CO02/03
Order : XXXXXXXX
Collective order
Enter
Double click on LAPSFG1
Goto menuCostsAnalysis
(it should show items RM Issue , FG receipt and activity type quantity)
16. Display Settlement rule
Tcode : CO02/03
Order : XXXXXXXX
Collective order
Enter
Double click on LAPSFG1
Header menuSettlement rule
(Material should be the settlement reciever)
Production Receipts for Production Order LAPSFG1
(Note :This step is not required for GR of SFG for production order if we use collective
order . So this step is to be skipped)
Tcode :MB31
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
…
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Movement Goods ReceiptsFor Order
Document date : Todays date Posting Date : Todays date
Movement type : 101 (GR for order into warehouse)
Order No: 600036XX
Plant : LAP1
Storage location : LAP1
Enter
Quantity : ? EA
Post
17. Production Order Confirmation for LAPSFG2
SAP Easy Access Logistics Production Shop Floor Control Confirmation Enter
For OperationTime Ticket
Tcode : CO11N
Order No: 600036XX (Enter the order that is created LAPSFG2 )
Enter
Operation 0010
Confirm.type : Final confirmation  Clear open reservations
Quantities
To be Confirmed Unit
Yield 1500 EA
Scrap
Activities
To be Confirmed Unit R
Processing 7500 H 
Goods Movements button
(Enter the quantity of RM that is consumed as shown in the table/image )

Sap co stepbystep config & user manual part 2

Sap co stepbystep config & user manual part 2

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