Product Costing, part of the Controlling module, is used to value the internal cost of materials and production for profitability and management accounting. Product Costing is a niche skill. Due to costing's high integration with other modules, many people avoid it due to the complexity. This 5 part blog will seek to simplify Product Costing.

Now that you understand Cost Center Planning, the next step in understanding the basics of product costing is Activity Rate Calculation. The goal of Activity Rate Calculation is to calculate the plan activity rates for each activity in each Cost Center in a Plant.

Prerequisites:

• Cost Center Plans are entered:
  • Plan Costs in KP06
  • Plan Activity units in KP26

Overview:

Now that our Cost Center dollars and activity quantities are planned, we need to calculate Activity Type Rates. Activity Type Rates are used to value internal activities to produce products.

If you manually entered activity rates based on last year's actual values instead of planning total dollars and units. You can skip most of this blog, and simply review activity rates in Transaction KSBT. Note that you can use a mixed approach and plan rates for some activities/cost centers and calculate rates for others.

If you planned all costs in production cost centers where they will be allocated, you can skip the next step of plan allocations.If you planned costs where they are incurred in overhead cost centers, you will need to use plan assessments and/or distributions to allocate costs. The specific details on Assessments and Distributions could be an entire blog in itself.The main difference between assessments and distributions is that distributions maintain the identity (primary cost element) of the cost. Assessments use Secondary Cost Elements which act as cost carriers to move costs, and therefore lose the identity (primary cost element) of the cost. You can choose to use Assessments or Distributions only, or use a mixed process. Plan Assessments and Distributions are created in Transactions KSU7 and KSV7 and executed in Transactions KSUB and KSVB.

After costs are allocated, it is important to review the Cost Center Actual/Plan/Variance report, Transaction S_ALR_87013611. Ensure that allocations credited sending cost centers and debited receiver cost centers.

Next, execute plan cost center splitting which splits costs when you have more than one activity type in a cost center and you want to split the costs between two activities based on activity qty or some other basis. This is a great place to use Cost Center groups to easily select desired cost centers since you cannot enter a range. Cost splitting uses Transaction KSS4.

Finally, Activity Type Rates are calculated using Transaction KSPI. If rates are undesirable, you can revise your cost center plans and recalculate rates. Rates are not final until you use them to calculate and release product costs. This is an iterative process, and it is expected that you will make several attempts at desirable rates.

After calculating Activity Type Rates, you can review rates in Transaction KSBT.

Relatable Example:

Let's say we are using Product Costing to value our inventory in a cookie baking shop. This will help us value our cookies (finished good), frosting (semi-finished good), and baking items like eggs, milk, and sugar (raw materials).In order to calculate costs, we need to come up with rates for each activity, such as mixing baking items, oven baking, and cookie cooling. We planned overhead costs like our building rent, electricity, and baker wages at an overhead cost center. We need to allocate those costs to our production cost center in order to include those costs in our product cost.Prior to calculating costs, let's assume there are some overhead costs in a cost center that should be split into multiple activities. Once we split these costs, then we calculate rates for activities. Now we have a dollar per unit for activities like indirect labor, direct labor, setup, and overhead to use in product costing.

Further information:

• You can use Cost Center Groups and Cost Element Groups to simplify selecting Cost Centers and Cost Elements in KSBT and KSPI and in other Cost Center/Cost Element Reports.
• You may find that your rates are not appearing for certain months, or that they are averaged over 12 months. Make sure you review the 'Period Overview' screen in Cost Center planning Transactions KP06 and KP26. This screen shows costs and units by each month.
• You can reverse Assessments and Distributions if results are undesirable.
• In theory, your plan Assessments and Distributions should match your actual Assessments and Distributions.

The next blog in the series explains how production data like BOM's (Bills of Material), Routings/Master Recipes and Work Centers integrate with Product Costing.

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-3-quantity-structure

If you missed my previous blog, use the link below:

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-1-cost-center-planning

Product Costing,part of the Controlling module, isused to value the internal cost of materials and production for profitability and management accounting. Product Costing is a niche skill. Due to costing's high integration with other modules, many people avoid it due to the complexity. This 5 part blog will seek to simplify Product Costing.

The third step in understanding the basics of product costing isQuantity Structure. Quantity Structure enables you to calculate the cogs of goods manufactured and cost of goods soldfor products based on theBOMandRouting(PP) or Master Recipe(PP-PI).

Prerequisites:

• Master data is created
  • Material Masters (including MRP, Accounting, Costing views)
  • Bill of Materials
  • Work Centers (with Cost Centers and Activity Types)
  • Routings (Production Planning) OR
  • Master Recipes (Production Planning- Process Industries)
  • Production Versions (optional)
  • Product Cost Collectors (PP-REM - Repetitive Manufacturing)

Overview:

Quantity Structure is an important concept in Product Costing because it is a key integration point between the Finance and Logistics modules in SAP. There are several components of Quantity Structure.

A material masteris created for each product with a unique fit/form/function in a plant. The material master contains many views including Material Resource Planning (MRP) views, Accounting views, and Costing views. Two costing-relevant fields on the MRP 2 view are procurement type and special procurement key. The procurement typefield indicates if a material is produced internally, purchased or both. Thespecial procurement keyfurther designates if a material is subcontracted, a phantom, purchased from another plant, etc. It is important that these two fields are correct when costing a material.

For each internally produced material, abill of materials(BOM) is created. A BOM contains the component materials and quantities required to produce a finished or semi-finished good. The material cost of a product is calculated using the standard or moving average price of the BOM components depending on the price control (S for standard, V for moving average).

Awork center (PP) or resource (PP-PI) identifies a machine or work area where a production process is performed. Each work center or resource utilizes a standard value key which is a unique set of activities related to a work center. I previously discussedactivity types in part 1 of this blog series.

In addition to a BOM, arouting or master recipeis created to indicate the processes required to produce a material. In Production Planning (PP) manufacturing, a routing is made up of a series of operations that include work centers and activity quantities which define a production process. In Production Planning- Process Industries (PP-PI), a master recipe is used for batch-oriented process manufacturing. A master recipe contains the processes required for producing a material including the resources (instead of work centers) required for production.

Repetitive manufacturing utilizesrate routingsandproduct cost collectors. Product cost collectors are created for each production version (see below) and capture costs per period rather than per order.

If there are multiple ways to produce a material including different material combinations or activities, production versions can be used. Production versions indicate a combination of a BOM and routing or master recipe required to produce a material. The first production version should be the most frequent or realistic

Relatable Example:

Let's say we are using Product Costing to value our inventory in a cookie baking shop. This will help us value our cookies (finished good), frosting (semi-finished good), and baking items like eggs, milk, and sugar (raw materials).

In order to calculate costs, we need a list of ingredients (Bill of Material) and a recipe of steps to follow (Routing or Master Recipe). There may be several ways that we can bake the same cookie by substituting ingredients or baking in different ovens, so we can have several versions of our ingredients and recipe (Production Version). In order to accurately calculate costs of producing our cookies, we need to define the places where baking activities occur (work centers or resources).

For example, we may use a refrigerator, mixing station, oven, cooling station, and packaging station. Each would be considered a work center, and we assign different activities like labor and overhead to each work center. The work centers and amount of each activity are indicated in our recipe (Routing or Master Recipe) as operations.Using the costs for each ingredient (Material Master) in our ingredient list (BOM) and the rates for activities in our recipe (Routing or Master Recipe), we can calculate the cost of producing a cookie.

Further information:

• Material Master MRP settings are crucial in product costing with quantity structure.
• You must re-calculate and release costs to reflect changes in production data like BOMs, Routings or Master Recipes, Production Versions.

In my next blog, I connect the concepts of cost center planning, activity rate calculation and quantity structure to the costing process. This blog includes executing a costing run, costing an individual material, and marking and releasing costs.

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-4-costing-run

If you missed the previous two blogs, catch up by following these links:

5 Steps to Understanding Product Costing- Part 1 Cost Center Planninghttp://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-1-cost-center-planning

5 Steps to Understanding Product Costing- Part 2 Activity Rate Calculationhttp://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-2-activity-rate-calculation

Product Costing, part of the Controlling module, is used to value the internal cost of materials and production for profitability and management accounting. Product Costing is a niche skill. Due to costing's high integration with other modules, many people avoid it due to the complexity. This 5 part blog will seek to simplify Product Costing.

The fourth step in understanding the basics of product costing is the costing run. Costing runs are used to cost mass amounts of materials in a single company code. The costing run allows you to select certain materials, explode their quantity structure, cost, analyze, and mark and release.

Prerequisites:

• Material Masters (including MRP, Accounting, & Costing views)
• Quantity Structure (Bill of Materials, Routing or Master Recipe, Production Versions are optional)
• Purchase Info Records and Condition Types (If desired for costing)
• Configuration (Cost Component Structure, Costing Variant, Valuation Variant, Costing Sheet if required)
• CO Master Data (Primary and Secondary Cost Elements, Activity Types, Mixed Costing Ratios & Alternatives if required, Additive Costs if required)

Overview:

During the annual or monthly costing process, materials are costed in a costing run. Transaction CK40N is used to execute costing runs, analyze results, and mark and release costs. The costing run must be created using a costing variant (read more in configuration section), costing version, controlling area, company code, and transfer control. Therefore, a costing run can only be created for one company code at a time. The costing run is also created for a particular date range.

The costing run contains six steps: Selection, Structure Explosion, Costing, Analysis, Marking, and Release. Each step requires you to enter parameters, save, and then execute. The selection parameters are entered which indicates which materials should be costed.  In the structure explosion step, the selected materials are exploded to pick up component materials from BOM’s.

As discussed in the previous blog on Quantity Structure, a bill of materials (BOM) is created for each internally produced material. In the costing step, finished good materials selected from the previous step are costed based on their BOM and routing or master recipe. A routing or master recipe is also created to indicate the processes required for a material. Component materials are also costed based on costing configuration.

You can analyze the costing results using the available reports in the analysis parameters. In the marking step, you open the lock to authorize marking for a company code, costing variant, and period. Once marked, costs appear as planned standard cost estimates in the material master. After executing marking, you release the costing results. Once released, costs are valid for the given date range and appear as current standard cost estimates in the material master.

After executing each step, it is important to review the error log and resolve errors. Once resolving errors in a given step, you must re-execute each step from the beginning to see the effect. If results do not update after executing, you can press the refresh button. You have the option to execute any step in background when processing a large number of materials or if you prefer to execute a step at a given date and time.

Configuration:

Configuration of costing and valuation variants and cost component structure are required to set the strategy for costing materials. The costing variant holds the criteria for costing. Costing variants contain a costing type, which determines the object to be created, and valuation variant. Valuation variants contain parameters for valuation of a cost estimate. In a valuation variant, you can specify the strategy sequence for how costs are selected. For produced materials, the component’s standard cost, moving average price, purchase info record price, or planned prices may be selected. You can also choose a particular plan/actual version and average the plan activity rates for the year or take the current activity rates. The cost component structure is used to indicate which costs should be included, whether to include the variable or total costs, and group costs in logical groupings called cost components.

Relatable Example:

Let's say we are using Product Costing to value our inventory in a cookie baking shop. This will help us value our cookies (finished good), frosting (semi-finished good), and baking items like eggs, milk, and sugar (raw materials).

Using the costs for each ingredient (Material Master) in our ingredient list (BOM) and the rates for activities in our recipe (Routing or Master Recipe), we can calculate the cost of producing a cookie. In costing our cookies, we will cost the ingredients. Once we are satisfied with our standard cost, we can choose to value our inventory at that cost (release).

Further information:

• Product Cost Collectors, used in repetitive manufacturing, must be costed in a separate transaction (Individual- KKF6N or Mass- KKF6M).
• You must re-calculate and release costs to reflect changes in production data like BOMs, Routings or Master Recipes, Production Versions.
• Note that only the first production version will be used in costing.

In the final blog of this series, I will explain how actual costs are calculated and plan to actual variance analysis.

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/04/5-steps-to-understanding-product-costing-part-5-actual-costs

If you missed the previous three blogs, catch up by following these links:

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-1-cost-center-planning

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-2-activity-rate-calculation

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-3-quantity-structure

Product Costing, part of the Controlling module, is used to value the internal cost of materials and production for profitability and management accounting. Product Costing is a niche skill. Due to costing's high integration with other modules, many people avoid it due to the complexity. This 5 part blog will seek to simplify Product Costing.

The fifth and final step in understanding the basics of product costing is actual costs. Actual costs are determined through purchase prices, actual expenses, and confirmed production quantities. Actual costs are compared to standard costs through variance analysis to make management decisions and determine profitability.

Prerequisites:

• Material Masters (including MRP, Accounting, & Costing views)
• Quantity Structure (Bill of Materials, Routing or Master Recipe, Production Versions are optional)
• Configuration (WIP, Variance, and Settlement)
• CO Master Data (Primary and Secondary Cost Elements, Activity Types, Actual Assessment/Distribution Cycles, Actual Statistical Key Figures if required)

Overview:

Throughout a given period, actual expenses are recorded in SAP as purchases are made, payroll is processed, bills are paid, and production occurs. At month-end, Work in Process, Variance, and Settlement are calculated. The variance between actual costs and standard costs can result in changes to product costing for the next period or year. Costs are settled and the posting period is closed at the end of the month end process to avoid material movement or accounting postings in the previous period.

In product cost by order, actual production yield, scrap, and activity quantities are entered in a production confirmation. The production costs are collected on the production orders for review and settlement. In product cost by period, product cost collectors are used to calculate WIP, variances, and settlement instead of the planned orders.

Prior to calculating variances and settling orders, orders must run through WIP calculation to determine what part (if any) of an order is not complete. You can calculate work in process at target costs for Product cost collectors, Production orders, and Process orders. Only orders that have a valid results analysis key and are not in status DLFL (Deletion flag) or DLT (Deleted) are included in WIP calculation.

In Product Cost by Period (repetitive manufacturing), the quantities confirmed (other than scrap) for manufacturing orders or production versions are valued at target cost based on the valuation variant for WIP and scrap. In Product Cost by Order (discrete manufacturing), WIP is the difference between the debit and credit of an order that has not been fully delivered.

SAP offers variance analysis on the input (consumption, overhead allocation, actual expenses) side and output (production quantity or valuation) side.

Finally, we must settle our orders or product cost collectors. Product Cost Collectors and orders are debited with actual costs during production. The actual costs posted to an order can be more or less than the value with which an order was credited when the goods receipt was posted. When you settle, the difference between the debit and credit of the order is transferred to Financial Accounting (FI).

Relatable Example:
Let's say we are using Product Costing to value our inventory in a cookie baking shop. This will help us value our cookies (finished good), frosting (semi-finished good), and baking items like eggs, milk, and sugar (raw materials).

At month-end, we determine what batches of cookies are still in progress (WIP), review our actual expenses and compare to our planned expenses (variances), and close our books for the month (settlement). The cookies still in the oven are considered WIP (order status not complete). We notice several types of cost variances due to higher milk costs (unfavorable input price variance), less frosting waste (favorable scrap variance), and a cost difference because we planned to purchase a higher percent of eggs from a lower cost farmer (unfavorable mixed price variance). After analyzing these variances, we make a few changes to our inventory costs of eggs and look for ways to save on milk costs. We close our books for the month and record our profit and loss to the Income Statement.

Thank you for reading this blog series on Product Costing. I plan to feature special configuration topics in product costing in my next blog series. You can read more of my blogs at TanyaDuncanBlog.com.

If you missed the previous four blogs, catch up by following these links:

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-1-cost-center-planning

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-2-activity-rate-calculation

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-3-quantity-structure

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/02/5-steps-to-understanding-product-costing-part-4-costing-run

One of my favorite memories during my first SAP deployment was the task to resolve COGI errors after go live. After I was assigned this role, I remember scouring the web, searching 'What are COGI's?' and 'Tips for resolving COGI errors' hoping to enlighten myself prior to go live. Not surprisingly, my search turned up mostly forum posts about specific error messages and seemingly helpful articles that required payment. I'm not sure that scanning a few articles would have helped much for the puzzles that lie ahead. Luckily I had an incredible mentor and strong functional teammates to learn from. I even had a plant resource assigned solely to help me resolve COGI's! By the end of the week, I was jokingly referred to as the 'COGI Queen'.

My hope for this blog is to provide a useful resource with best practices and common error messages as well as my insights from experience. Ultimately, I think this should be a wiki, and I'd appreciate any advice on where to place this and your insights and comments. Note that this blog will be particularly relevant for a manufacturing environment.

Let's start with the basics. COGI stands for Controlling Goods Issued and is a standard SAP transaction which shows a report of automatic goods movement errors. Automatic Goods Issues are carried out by the production confirmation if the Backflush indicator is set on the MRP 1 View.

• Backflushing is a goods issue of materials to the production line.
• The quantities for backflushing are controlled by the component quantities on the BOM.
• The storage location from which the components are issued is controlled by the Issue Storage Location on the MRP1 View of the Material Master.

When the master data for finished goods is set up properly, the automatic goods issue will execute without error whenever a production confirmation (partial or final) is entered. The automatic goods receipt may fail for one of the following reasons:

• The Issue Storage Location field on the material master is blank.
• The storage location is blocked for that material (eg. during a physical inventory).
• There is an insufficient level of inventory in the system for the component(s) back flushed.

Now let's lay the ground rules:

1. Start by viewing COGI in summation view by plant (default view). If you're viewing this for the first time after go live, relax. You will likely see a very large number of errors, but hopefully many are multiples of the same error. Note that records are grouped by material, movement type, and error message with the number of errors for each record after the error message code. If you dare, try viewing the COGI's in individual records display (select radio button at bottom of selection screen). Here you will see each error as an individual record. This view is ideal when troubleshooting errors and not for an overall summary. Drill in to a COGI by double clicking on the record. You can navigate right from the COGI error to view the material master, order, stock, and stock/requirements list (depending on your SAP version). Note that transaction COGI is just the starting point for resolving COGI's. You will need to view and edit material masters, Production/Process Orders, Vendor Masters, post inventory movements, view stock, view stock requirements list, etc. Be ready to dig deep!

2. As a best practice, DO NOT DELETE COGI errors!! This is your only (or at least the easiest) indication that there is an issue with stock that needs to be addressed. Make sure your key users know and live by this rule. It will bite you later if you delete a COGI without addressing it first. There are a few cases where you can delete a COGI after resolving the issue. Typically, pressing the save button and/or refresh button after resolving an error does the trick.

3. Check the COGI report on a daily basis. During go live, this report is a great representation of the accuracy of BOMs. For example, a BOM with the incorrect amount of a material, the wrong material, or the wrong amount of scrap can cause a COGI. Resolving these issues requires correcting the BOM and correcting stock with a physical inventory count. Never let a COGI sit for more than a week. Resolving these errors is very important because it keeps the integrity of orders and stock in SAP.

4. Before cancelling a Production Order confirmation, correct the COGI errors from the original confirmation to avoid creating additional errors.

5. A big part of resolving COGI's is understanding the story behind the error. The best way to understand is to get in the plant and talk to the people that do the confirmations and can show you and explain what happened. I learned so much about resolving errors by actually seeing the materials I was editing and understanding the types of BOM's I was working with.

6. Document everything! Unfortunately standard SAP COGI does not keep a record of COGI's. So after they are deleted or cleared, you have no record of the quantity or type of errors at a given time. I exported the COGI errors for each plant every hour for the first day, and twice a day for four or six weeks after go live. I had several charts showing the decline of COGI's after go live that were circulated around the team and to leadership. COGI count was a good KPI after go live! You'll also want to document what you did to resolve COGI's for auditing purposes and to save time when you see the same error again!

**Note that if someone is viewing a record in COGI, it will be locked. Also note that if a user selects all records and saves, that users name will show as resolving that COGI error... even if another user actually resolved it.

COGI Status:

Unit of Measure conversion error: The conversion of the UOM shown in the COGI error to the base UOM in the material master is missing.  The plant will need to review the error and insert the correct conversion in the material master Units of Measure table. You can also avoid UOM errors by using a universal measurement for materials. For example, measuring string or tape by feet/meters/inches instead of rolls because rolls can differ between vendors.

Not executed - Transfer posting failed: Stock in vendor owned is available to fulfill consumption requirement but when quantity is rounded to next whole base UOM there is not enough stock in vendor owned to fulfill movement.

Multiple vendor records error: Only one consignment vendor may be assigned to a plant/material.  The plant must review their consignment vendors for the plant/material and mark one consignment price record for deletion (MSK2).  If there is stock from the vendor marked for deletion it must be reconciled, either by purchasing the inventory or returning the inventory to the vendor.  This reconciliation should be done before the consignment price record is marked for deletion.

Insufficient stock or No retry due to deficit: This is a very common error shown when there is not enough company or vendor owned stock to fulfill the requirement.  Usually this error is caused because a raw material has not been received at the plant or a semi-finished good material production order has not been confirmed at the plant.

Material locked:  The material is locked at the plant and any material movement transaction will fail.  Once the material is press save in COGI to clear the COGI error.

COGI failed:  Inventory quantity is available to cover the requirement but was received at a later date than the error was encountered.  During the month this overlap of dates is not a problem, but when a COGI error occurs in a previous month than when the inventory is received the system will not process the COGI error.  The plant must manually clean up these errors using the COGI transaction and overlay the date.

Completed: COGI error was corrected.

Common Error Messages:

This is a small sampling of the basic COGI errors you may see. This could be a 10 page blog if I added every error I saw, especially some of the more complicated errors!

M7 021; Deficit of unrestricted stock: Not enough inventory to backflush in the storage location specified. If inventory exists, make the necessary goods receipts (receive stock transfer or purchased goods).

M7 022; Quantity moved exceeded by x: The over delivery tolerance for the production order has been exceeded. If an over delivery tolerance is not set in the material master on the work scheduling view, set one up.  If the over delivery is valid, create a second production order to handle to over-produced good.

F5 286; Period A is not open for account type X: Production confirmations have been entered during closing before the next accounting period has been opened. Once the accounting period is open, select and save the failed records.

M7 018; Enter storage location: This common error is caused when the Issue Storage Location is blank on the Work Scheduling view of the material master. Double click and edit the record in COGI with the correct storage location, then press the Save button.  After correcting the record, update the Issue Storage Location field on the material master with the correct storage location to avoid future errors.

M7 121; You have no authorization for this transaction with movement type XXX: Have a user with the correct authorizations open this COGI and save to clear the error. Ensure that the user that tried to make this movement initially has the correct level of authorization if required.

M7 053; Posting only possible in period XXXX/XX and XXXX/XX in Company Code XXXX: This is not likely something you will see in a Production client, only in test systems, that is unless someone forgot to open the accounting period for accounting and material postings (tsk tsk). Change the posting date if incorrect by opening the COGI or open the correct periods, then save the COGI.

I think what I enjoyed most about my experience with COGI's was the feeling of accomplishment and pride when that total number dropped below 2000 and then 1000... and those days we saw zero! There was even a healthy competition during my second deployment between the three plants! I really enjoyed being the go-to person for such functionally integrated and fun problems. I hope you get the chance to be a COGI King or Queen!

Product Costing, part of the Controlling module, is used to value the internal cost of materials and production for profitability and management accounting. Product Costing is a niche skill. Due to costing's high integration with other modules, many people avoid it due to the complexity. In my last blog series, I simplified Product Costing into 5 parts. I think an important follow up to that blog series is diving in to some of the configuration that support product costing.

In my blog on Cost Center Accounting, I discussed that you need to enter plan total dollars and quantities in each Cost Center in a Plant.

• Cost Center dollars are planned by Activity Type and Cost Element in Transaction KP06. Variable and fixed dollar amounts can be entered.
• Cost Center activity quantities are planned in by Activity Type in Transaction KP26. You can also manually enter an activity rate based on last year's actual values.
• Statistical Key Figures are planned by Cost Center in Transaction KP46. SKF's can be used in cost allocations.
  

When planning Cost Center dollars, activity quantities or rates, or SKF's it's important to ensure that your planning profile and layout are suitable for your requirements. For example, the default layout uses the Controlling Area currency. If your Company Code currency is not the same as the Controlling Area currency it will be confusing for users to convert currencies for planning purposes. You may also choose change your layout to make mass cost center planning possible rather than one sheet per cost center.

Below is the step by step process to create Planning Profiles and Layouts including best practices and tips.

1. KP34 Define User-Defined Planner Profiles

If you need to make changes to planning layouts, you will need to edit the Planner Profile. It is a best practice to create a new Planner Profile if changes need to be made instead of editing a SAP Planner Profile. You can use one Planner Profile with multiple Planning Layouts, or separate layouts into different Planner Profiles. To create: Click New Entries, enter the Profile, Description, and save.

2. Select the Planning Profile and click General Controlling. Drop down on Planning Areas and select the relevant planning that should be included in this Planning Profile. You can enter multiple Planning Areas in the same Planner Profile. Once entered, save. We will come back later to add more details.

3. KP65 Create Planning Layouts for Cost Element Planning

Enter the Planning Layout and description. You can also copy from an existing layout. It is best practice to copy from and create a new Layout if necessary. Click Create. The Report Painter screen shows the Planning Layouts for Cost Element Planning and the Planning Layout just created. Double click on any header field to change the column field or column description. Make any necessary changes to the fields in the layout and save.

Double click on any header field to change the column field or column description. Make any necessary changes to the fields in the layout and save.

4. KP34 Define User-Defined Planner Profiles 

Select your previously created Planner Profile and click General Controlling. Select the Planning Area previously created and click Layouts for Controlling. Select the layout you created. Click the Overview and Integrated Planning check boxes. The overview option allows users to write over the default parameters on the selection screen. This usually makes sense to select. The Integrated Planning option allows the user to plan in an Excel sheet in SAP, or save an Excel file into SAP. We can deselect this later, but we need it to get our file description. Enter and save.

5. Select the layout and click Default Settings. You will be taken to the selection screen where Cost Element Planning is done. You can enter default parameters for any of the fields. For now, you must enter a Version, From Period, To Period, Fiscal Year, Cost Center and Cost Element. You can change defaults later.

6. Click the Overview button (F5). A popup will say 'File description 0X_XPX_XXXX_XXXX has been generated'. Click enter. An excel upload template will appear. Copy and paste text to an excel file to save for users to upload. Click Save file description. If you click Save file layout, the layout on screen will appear for users when they enter planning. Some users may prefer this view. I find that users prefer the more structured standard layout versus the excel layout.

7. Green arrow back to the Default Parameters screen. Correct any default parameters and save. Green arrow back to the Layouts for Controlling screen. Deselect the Integrated Planning check box if desired. Notice that the File Description is now populated. Save.

8. Repeat steps 2 - 7 for any other Planning Layouts:

KP75 Create Planning Layouts for Activity Type Planning

KP85 Create Planning Layouts for Statistical Key Figure Planning

9. Now that this configuration is in place, users can upload an excel file or file directory instead of manually typing planning in SAP.

Go to KP06, KP26, or KP46. Extras-> Excel Planning-> Upload. Select Import single file or file directory. Enter the file path on your desktop. Enter the file description from configuration. Select the proper decimal notation and separator. Execute. The excel upload function is very finicky, but when it works, it can save a lot of time for users.

When we run Actual Costing in the system, sometimes we found "Not Distributed" item that in Material Price Analysis (CKM3). This is some example how we can analyze Not Distributed Price Differences with Value Flow Monitor (CKMVFM).

For some documentation about this issue please revers to:

1. SAP Note 908776 - Not included/not allocated and not distributed

2. SAP Note 744090 - Value Flow Monitor: Explanation and recommendations

This is some example about not distributed price differences case:

Open CKM3N and insert Material, Plant and Period/Year

Open CKMVFM in another session

Fill in:

1. Company Code

2. Material

3. Plant

4. Period

5. Year

6. Display Material, choose With Not Distributed/Included Differences

7. DB Extract>Read Extract choose Write Extract and specify the Name

Run the report.

After that choose the material and click on Not Distributed Icon to get the Detail View: Not Distributed Price Differences

This is the formula

Now we know where the Not Distributed Price Differences coming from.

Visit us at the SAP Financials conference in Las Vegas March 19-22

General information about the conference can be found at http://www.financials2013.wispubs.comwww.http://www.financials2013.wispubs.comfinancials2013.wispubs.com. Key sessions are:

March 18th (pre-conference)

• 2:00 PM How to accelerate financial and managerial accounting processes using SAP HANA  -  Peter Himmighoefer, Birgit Starmanns

March 19th

• 8:30 AM ...Keynote Address: Driving Business Transformation through Technology Innovation  -  John Schweitzer
• 10:15 AM ... A new way to improve the end-user experience with SAP ERP Financials - Carsten Hilker
• 12:00 PM ... An updated guide to planning solutions from SAP  -  David Roberts
• same time ... Live demo: Latest innovations for SAP ERP usability  -  Carsten Hilker

March 20th

• Maximize the value of your product costing functionality and its integration within SAP ERP  -  Birgit Starmanns
• 2:30pm ... Performance management techniques for finance line of business managers  -  Pete Graham
• same time ... The mobile revolution is here: How SAP mobile applications for finance can help your organization thrive  -  Birgit Starmanns
• 4:30 PM ... 2013 overview and roadmap for SAP financial solutions  -  Martin Naraschewski
• same time ... A step-by-step guide to reconciling CO-PA to the SAP General Ledger  -  Paul Ovigele, Ovigele Consulting

March 21st

• 8:30 AM ... A detailed guide to new financials functionality delivered in SAP enhancement package 6  -  Winfried Schmitt

• 5:30 PM ... Case study: How McKesson implemented CO-PA on SAP HANA for improved financial reporting  -  Ross Wilson, McKesson

I came across a very special requirement from my customer site to add just one field for storing tax registration numbers. This such a simple requirement for any one of us worked in SAP for few years. Huuu ... don't stop just here . My customer was too picky ... The list of requirements went on adding like they wanted this field be dependent on the country as this is a tax registration number for a given country. Means this field should not show up for other countries. This field should not be editable by any one in production system as they are very critical for legal reasons. This field labels need to have the custom label meant for each country. The number of these fields can keep increasing on time to time for each country as per tax legislations. However the values under this field is required only to be printed on our custom built invoices. The only place I felt that I had smooth let go was this registration number was not used in any functionality driven by reports or tax calculations etc delivered by SAP out of box solutions. Me lucky here.

In this context ... My Gurus what will you recommend? No matter whichever table we append with fields we can not be driven by country. It was not an option to add Z-fields for any table. In my SAP carreer this was the first time I came across such a requirement and was puzzling me to find the right place in ECC. After some research I found a way out to match the above requirements and wanted to share with you all ... Again unleash the power of SAP and proved it's SMART again.

After refering some of the OSS Notes found a easy go ... Made use of the Global Data for Company Code which we need to make use while defining company code for each country specific legal entity. Added the additional data parameters which needs no code changes or development effort .... isnt it cool? I am sharing you the steps I followed to add these fields.

Go To SE16 and Enter Table name as T100I (company code - parameter types). and Hit F5 to navigate to Table Insert page. Key in the values like parameter type, parameter length, ISO country code, Description. Then Save. One record inserted in T100I table.

Now we can see this parameter in OBY6 - additional data page. Save the value in the table.

Entering any value for this parameter will be stored in T100Z. This is the home of new parameter introduced just now.

To perform this activity we need to open the client for modification mode.

Thats for today, share if you have a better way to handle such requirement. Thank you My Seniour who was so particualr and made me to explore this option.

Hi Experts,

While we trying to see the asset value (AW01N) or run the depreciation/posting the unplanned dep./posting additional value for this asset etc we are getting below error.

"Transaction in area 01 contradicts the net book value rule"

Asset Detail:

Status  Per Ord. dep. Uplnd dep. Reserves Revaluat

Posted    1     1.37-      0.00           0.00      0.00

Posted    2     1.37-      0.00           0.00      0.00

Posted    3     1.37-      0.00           0.00      0.00

Posted    4   101.11-      0.00          0.00      0.00

Posted    5    98.37       0.00          0.00      0.00

Posted    6     1.37-      0.00           0.00      0.00

Posted    7     1.37-      0.00           0.00      0.00

Posted    8     1.37-      0.00           0.00      0.00

Posted    9     1.37-      0.00           0.00      0.00

Planned  12    12.33       0.00         0.00      0.00

                      0.00       0.00          0.00      0.00

Wrongly we have done the GRN on 11.07.2013 for 29921.00 for this asset, then 31.07.2012 transfer that asset to new assets.

Can you know the reason, 1. Why the system is not calculating planned dep. for period 10 and 11. 2. it is showing as positive value for the period 12. 3. it is trying to make 0.00 depreciation for this year (FY: 2012-2013)

(we don't want to do the changes in the Dep. Area i.e. ALLOW ALL VALUES for posting the depreciation)

Kindly provide me the suggestion on this it is very urgent we have to run the depreciation for the month.

Thanks

Regards,

John

Applies to:

All releases of SAP for Financial postings made from a various applications like SAP-Logistics, SAP-Financials, etc for more information, visit the Enterprise Resource planning homepage

Summary

Automatic assignment occurs during postings in external accounting (with in the FI, MM, or SD components) if you did not enter a CO account assignment object (cost center, order, or project) for a cost accounting relevant posting. This is always the case if the R/3 System automatically created the posting row in question.

This paper highlights an alternative approach where standard default account assignment (OKB9) based on Valuation area or Profit Center is not sufficient and a default account assignment based on Valuation area and Profit center is required.

Author:             Raheem Baksh

Company:        NovelERP Solution Pvt.Ltd.

Created On:      Apr 2013

Standard SAP – Default Account Assignment (OKB9)

The standard SAP offers to specify a default account assignment (Cost Center/Internal Order)

1. Per company code
2. Per Business area
3. Per Profit Center
4. Per Valuation area

In cases, where a default account assignment is to be specified below the company code, then “Account Assignment Detail” field in OKB9 is used to specify a default CO object per Business area or Profit center or Valuation area.

But system does not determined Default cost object from OKB9 for automatically generated lines that reference the entire document and not individual items.

For More Information Read SAP Notes 105024, and 32654

Example: Key-

"DIF" (minor differences)

"UPF" (unplanned delivery costs)

"KDT" (tax exchange rate difference)

“OFF” (GTA)

"KDR" (exchange rate rounding)

Default Account Assignment in OKB9

You can define automatic account assignments In OKB9 or  defaults in the cost element masters data record .The cost element master data record can determine these assignments per controlling area, and the IMG per company code, business area, and/or valuation area.

Transaction Code - OKB9

Here it is mandatory to set Minimum One Combination to call Default Account Assigned Object

1. Valuation Area is mandatory
2. Business Area is mandatory
3. Profit center is mandatory

Here we have set as “1”Valuation Area is mandatory

Here whenever Prerequisite met from your Transaction System will pickup default cost center as per Valuation area.

Define Substitution OKC9

In substitution, the SAP System checks whether particular input values satisfy one or more user-defined conditions. If the condition is fulfilled, the values are automatically replaced by other values.

Standard settings

The following callup points are defined in the standard SAP System for Controlling:

• 0001 - Document row : Used for all CO-relevant postings in external accounting as well as for manual postings in CO.
• 0010 – Order: Used for order background processing and irrelevant for account assignment checks.
• 0100 - Document header: Used for manual postings in CO, such as reposting costs or activity allocation.

Activities

1. 1. Determine in which controlling area you want to substitute values.
2. 2. Create a substitution.

Proceed as follows:

a) Choose the "New entries" function.

b) Enter the controlling area in which the substitution is to be executed.

c) Enter a callup point.

d) Save your entries

e) Choose "Environment -> Substitution".

f) Enter a name and a callup point for the substitution.

You can use an existing substitution as a reference.

g) Change the model data to meet your specifications, or copy them without changes.

h) Save your entries.

i) If you do not use a reference, proceed as follows:

j) Verify your entries by freeing the data for release.

k) Enter a description of the substitution.

l) To define the substitution steps, choose "Insert entry".

m) Choose the substitution fields in the dialog box that appears.

You can choose "Exit only" or database fields. "Exit only" ensures that all fields allowed for substitution are available only in this USER-EXIT. Otherwise, you can replace one field only, using a value defined in the USER-EXIT.

n) Transfer one or more of the displayed substitution fields.

o) Enter a description of the substitution step.

p) Enter one or more conditions under "Prerequisites".

Use the function "Fields for conditions" to do so. You may also maintain rules by choosing the corresponding function.

q) Enter constant values for the fields to be substituted, or store a substitution exit.

r) Save the substitution steps.

s) Return to the initial screen.

t) Enter the substitution's name for your controlling area and set an activation level.

Activation level "1" ensures that the substitution is active in the correct controlling area.

u) Save the substitution.

Note on transport

To transport substitutions, a separate function is available in the IMG for "General Controlling"

Transaction Code - OKC9

Substitution-

Prerequisite – Company code =1000 and Controlling area =1000

If Prerequisite is met substitute by User exit UOKB0

Check Client specific user exit GCX2          

Transaction code: GCX2

Here you need to check assigned program for the Application Area GBLS.

You need to some change in Program, First copy from Existing program RGGBS000.

Copy from Exiting program SE38

Copy from Existing program and change in Z Program, Ask technical guy if you are not familiar on Program, for copy or change new program you need to developer ID.

Change in Z Program as below-

Note : see below changes are based on organization structure here you need to determine which field you can enter to get Cost center, if you are using Business area so OKB9 can be determine by Business area .

We have made OKB9 account assignment as per Valuation Area, but here system does not determine profit center and Valuation Area for auto generated line item,

Our Business Place and Section Code is equal to Plant (Valuation Area)

*&----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------*
*&      Form  UOKB9
*&---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------*
*       text
*-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------*
FORM UOKB9 .


if COBL-WERKS is INITIAL AND COBL-BWKEY is INITIAL.
COBL-WERKS = bseg-bupla.
COBL-BWKEY  = bseg-bupla.
ENDIF.

DATA:
LD_KOSTL LIKE COBL-KOSTL,
LD_AUFNR LIKE COBL-AUFNR,
LD_PRCTR LIKE COBL-PRCTR,
LD_PAOBJNR LIKE COBL-PAOBJNR.

CHECK COBK-VRGNG = 'COIN'.

CHECK NOT COBL-HKONT IS INITIAL.

CALL FUNCTION 'RK_KSTAR_READ'
EXPORTING
DATUM           = COBK-BUDAT
KOKRS           = COBK-KOKRS
KSTAR           = COBL-HKONT
IMPORTING
V_CSKB          = CSKBV
EXCEPTIONS
KSTAR_NOT_FOUND = 1.
CHECK SY-SUBRC = 0.

CALL FUNCTION 'K_ACCOUNT_ASSIGNMENT_GET'
EXPORTING
BUKRS     = COBL-BUKRS
WERKS     = COBL-WERKS
BWKEY     = COBL-BWKEY
GSBER     = COBL-GSBER
KSTAR     = COBL-HKONT
I_COBL    = COBL
IMPORTING
KOSTL     = LD_KOSTL
AUFNR     = LD_AUFNR
PRCTR     = LD_PRCTR
E_PAOBJNR = LD_PAOBJNR.

IF  COBL-KOSTL IS INITIAL              "*!
AND NOT LD_KOSTL IS INITIAL.
COBL-KOSTL = LD_KOSTL.
ENDIF.

IF  COBL-AUFNR IS INITIAL              "*!
AND NOT LD_AUFNR IS INITIAL.
COBL-AUFNR = LD_AUFNR.
ENDIF.

IF  COBL-PRCTR IS INITIAL              "*!
AND NOT LD_PRCTR IS INITIAL.
COBL-PRCTR = LD_PRCTR.
ENDIF.

IF  COBL-PAOBJNR IS INITIAL            "*!
AND NOT LD_PAOBJNR IS INITIAL.
COBL-PAOBJNR = LD_PAOBJNR.
ENDIF.

ENDFORM.                                                    "UOKB9

*&----------------------------------------------------------------------------*

Assign Z program in to Client specific user exit GCX2

Steps:

1. Create Planning Layout: Tcode KP65

Example:

Planning layout: Z1-103EXCEL

Copy from layout: 1-103

2. Change Planning Layout: Tcode KP66

a. Chosse your new layout

b. Go to Edit / Gen. Data Selection / Gen. Data Selection

- Choose Period field in the left list, and remove it to the right list.

- Then click "Confirm"

Result:

c. Double click on 'Plan Fix Costs' Column in layout, choose the Period in the right side and move it to the left side

- Enter the value 1

- Then click "Confirm"

- Change the name of this column by putting the cursor at this column, choose 'Change text' button, enter the new name, example: Plan cost 1

Result:

d. Copy Plan cost 1 column to another one and change text, change value of period to 2, 3, 4 until 12.

Note that the copied column is created in the left side of current column.

e. Delete some unnesessary columns like Plan Consu., Dist (atfer Plan consu. column), Uni, Q

f. Save the layout.

Result:

3. Assign the layout to Planning profile:

Path: SPRO > IMG > Controlling > Cost Center Accounting > Planning > Manual Planning > Define User-defined Planner Profiles

- Choose the Profile you're using (or you can create new Profile), go to "General Controlling" tab

+ If Planning Area "Cost ctrs: Cost element/activity inputs" exists, choose it and go to "Layout for Controlling"

+ If Planning Area "Cost ctrs: Cost element/activity inputs" doesn't exist, create new and choose it and go to "Layout for Controlling"

- In "Layouts for Controlling" tab:

Create new entry with assigning the new layout, check on Overview and Integrated Excel box.

Result:

Choose it and go to "Default parameter" tab:

- It goes to the same layout, enter some example parameter:

- After that, the message is appeared:

- Click "Overview screen" button, the message is appeared, choose "Enable Macros":

- Then, click on "Save file description"

- Besides that,save as this file to another excel file to make it as temple for uploading.

- Go back, the file description is creared and updated automatically

Result:

4. So now, you prepare the data in the excel file and save it as .txt

- You can change to another cost center and add more cost element.

But you need to copy correct name of cost center and cost element.

Example: I have an upload file:

5. Upload planning data: tcode KP06, specify the layout your created.

- Go to menu Extras > Excel Planning > Upload...

- One screen is display, specify the location of upload file, choose the correct file description has been assigned to your layout

- Execute it.

- The log is appear if successful like this:

End.

The period sequence shows incorrectly while uploading file via T-code:7KEX.
The period sequence is changed.

For example:
period displayed in excel file as the following:
1  2 3 4 5 6 7 8 9 10 11 12

After upload, the period changed to the following:
12 11 10 9 8 7 6 5 4 3 2 1

But the correct period sequence should be 1 2 3 4 5 6 7 8 9 10 11 12.

The reason of the problem due to the file description is inconsistent.

Please delete the assignment of the file description in T-code: KP34PC
Then run the report RKCDPREO and delete the file description
(after deletion the file description is not listed in RKCDPREO anymore).
Then create the file description in T-code:KP34PC in the usual way.
Afterwards it should work.

Scenario: We have a scenario to reverse ONLY the documents posted in CO.

By mistake, a cost element was created for a GL account. This GL account was a normal account without a cost element till the above incident happens.
Because of the reason that a primary cost element was created, system started creating the CO documents for 2-3 days. (Controlling doc, PCA doc and COPA documents were created automatically during posting from SD or MM).

Now, business realized the issue and they blocked the old GL account and created a new GL account without Cost Element. Then all account determination tables for SD and MM were changed to avoid any impact of postings from logistics processes.

Now, there are posting in COEP table and around 25137 line item entries are posted here with the wrong cost element (these postings are NOT supposed to be created). Business want all these unwanted documents from CO (only from CO and not FI) to be reversed.

There are many tcodes available from respective areas to re-post or reverse documents in CO. But, these will reverse the FI document as well.

As the requirement  is to reverse ONLY the line items which are posted to above cost element which was created by mistake.

document line items with Cost element xxxxxxxx
controlling area XXXX
operating concern XXXX
posting period 1
Fiscal Year 2013

By following the below steps we can reverse  CO documents (Like CO Line item document, CO-PA document and PCA document).

1) Reverse of the CO line items through t-code KB61.

2) Reverse of the CO-PA document through t-code KE4S00

3) Reverse of the PCA Document through t-code 9KED.

4) Delete the cost elements through t-code KA04

Symptom: You find the relevant job of settlement executed quite a long time and in worse case, it even cannot complete. You have no idea how to do to improve the performance for these processings.

Your current issue is a typical period-end closing performance issue.

Resolution Steps：

1. Note search with your system's SAP APPL support package with keyword such as: CO88 and performance.

        Extract all the program error notes and implement them to your system

  2.   Follow the common recommendation for all the CO month-end processing transactions:

• During period-end closing, the system will select all the production orders in the system unless the deletion flag has been set on the orders. Please check if you can set deletion flag on any of your orders The most efficient way is recommended to set deletion flag to the orders  which are not used or not relevant for processing. This will save a lot  of time.
• Please consider to limit the selection via program RKO7CO88. You can split the current job into small packages like execute each order group with a new single job.
• Please check note 309588 for more information about object selection in period end closing and see if you can reduce the selection.
• Please review SAP note 393686 for more information on how to improve the performance of period-end closing including settlement.
• Check the details of SAP note 38855 Info on settlement: Performance improvements
• Parallel processing can be considered basing on SAP Note 386508.

After the above steps are exeucted, the performance should be improved significantly.

One of my favorite memories during my first SAP deployment was the task to resolve COGI errors after go live. After I was assigned this role, I remember scouring the web, searching 'What are COGI's?' and 'Tips for resolving COGI errors' hoping to enlighten myself prior to go live. Not surprisingly, my search turned up mostly forum posts about specific error messages and seemingly helpful articles that required payment. I'm not sure that scanning a few articles would have helped much for the puzzles that lie ahead. Luckily I had an incredible mentor and strong functional teammates to learn from. I even had a plant resource assigned solely to help me resolve COGI's! By the end of the week, I was jokingly referred to as the 'COGI Queen'.

My hope for this blog is to provide a useful resource with best practices and common error messages as well as my insights from experience. Ultimately, I think this should be a wiki, and I'd appreciate any advice on where to place this and your insights and comments. Note that this blog will be particularly relevant for a manufacturing environment.

Let's start with the basics. COGI stands for Controlling Goods Issued and is a standard SAP transaction which shows a report of automatic goods movement errors. Automatic Goods Issues are carried out by the production confirmation if the Backflush indicator is set on the MRP 1 View.

• Backflushing is a goods issue of materials to the production line.
• The quantities for backflushing are controlled by the component quantities on the BOM.
• The storage location from which the components are issued is controlled by the Issue Storage Location on the MRP1 View of the Material Master.

When the master data for finished goods is set up properly, the automatic goods issue will execute without error whenever a production confirmation (partial or final) is entered. The automatic goods receipt may fail for one of the following reasons:

• The Issue Storage Location field on the material master is blank.
• The storage location is blocked for that material (eg. during a physical inventory).
• There is an insufficient level of inventory in the system for the component(s) back flushed.

Now let's lay the ground rules:

1. Start by viewing COGI in summation view by plant (default view). If you're viewing this for the first time after go live, relax. You will likely see a very large number of errors, but hopefully many are multiples of the same error. Note that records are grouped by material, movement type, and error message with the number of errors for each record after the error message code. If you dare, try viewing the COGI's in individual records display (select radio button at bottom of selection screen). Here you will see each error as an individual record. This view is ideal when troubleshooting errors and not for an overall summary. Drill in to a COGI by double clicking on the record. You can navigate right from the COGI error to view the material master, order, stock, and stock/requirements list (depending on your SAP version). Note that transaction COGI is just the starting point for resolving COGI's. You will need to view and edit material masters, Production/Process Orders, Vendor Masters, post inventory movements, view stock, view stock requirements list, etc. Be ready to dig deep!

2. As a best practice, DO NOT DELETE COGI errors!! This is your only (or at least the easiest) indication that there is an issue with stock that needs to be addressed. Make sure your key users know and live by this rule. It will bite you later if you delete a COGI without addressing it first. There are a few cases where you can delete a COGI after resolving the issue. Typically, pressing the save button and/or refresh button after resolving an error does the trick.

3. Check the COGI report on a daily basis. During go live, this report is a great representation of the accuracy of BOMs. For example, a BOM with the incorrect amount of a material, the wrong material, or the wrong amount of scrap can cause a COGI. Resolving these issues requires correcting the BOM and correcting stock with a physical inventory count. Never let a COGI sit for more than a week. Resolving these errors is very important because it keeps the integrity of orders and stock in SAP.

4. Before cancelling a Production Order confirmation, correct the COGI errors from the original confirmation to avoid creating additional errors.

5. A big part of resolving COGI's is understanding the story behind the error. The best way to understand is to get in the plant and talk to the people that do the confirmations and can show you and explain what happened. I learned so much about resolving errors by actually seeing the materials I was editing and understanding the types of BOM's I was working with.

6. Document everything! Unfortunately standard SAP COGI does not keep a record of COGI's. So after they are deleted or cleared, you have no record of the quantity or type of errors at a given time. I exported the COGI errors for each plant every hour for the first day, and twice a day for four or six weeks after go live. I had several charts showing the decline of COGI's after go live that were circulated around the team and to leadership. COGI count was a good KPI after go live! You'll also want to document what you did to resolve COGI's for auditing purposes and to save time when you see the same error again!

**Note that if someone is viewing a record in COGI, it will be locked. Also note that if a user selects all records and saves, that users name will show as resolving that COGI error... even if another user actually resolved it.

COGI Status:

Unit of Measure conversion error: The conversion of the UOM shown in the COGI error to the base UOM in the material master is missing.  The plant will need to review the error and insert the correct conversion in the material master Units of Measure table. You can also avoid UOM errors by using a universal measurement for materials. For example, measuring string or tape by feet/meters/inches instead of rolls because rolls can differ between vendors.

Not executed - Transfer posting failed: Stock in vendor owned is available to fulfill consumption requirement but when quantity is rounded to next whole base UOM there is not enough stock in vendor owned to fulfill movement.

Multiple vendor records error: Only one consignment vendor may be assigned to a plant/material.  The plant must review their consignment vendors for the plant/material and mark one consignment price record for deletion (MSK2).  If there is stock from the vendor marked for deletion it must be reconciled, either by purchasing the inventory or returning the inventory to the vendor.  This reconciliation should be done before the consignment price record is marked for deletion.

Insufficient stock or No retry due to deficit: This is a very common error shown when there is not enough company or vendor owned stock to fulfill the requirement.  Usually this error is caused because a raw material has not been received at the plant or a semi-finished good material production order has not been confirmed at the plant.

Material locked:  The material is locked at the plant and any material movement transaction will fail.  Once the material is press save in COGI to clear the COGI error.

COGI failed:  Inventory quantity is available to cover the requirement but was received at a later date than the error was encountered.  During the month this overlap of dates is not a problem, but when a COGI error occurs in a previous month than when the inventory is received the system will not process the COGI error.  The plant must manually clean up these errors using the COGI transaction and overlay the date.

Completed: COGI error was corrected.

Common Error Messages:

This is a small sampling of the basic COGI errors you may see. This could be a 10 page blog if I added every error I saw, especially some of the more complicated errors!

M7 021; Deficit of unrestricted stock: Not enough inventory to backflush in the storage location specified. If inventory exists, make the necessary goods receipts (receive stock transfer or purchased goods).

M7 022; Quantity moved exceeded by x: The over delivery tolerance for the production order has been exceeded. If an over delivery tolerance is not set in the material master on the work scheduling view, set one up.  If the over delivery is valid, create a second production order to handle to over-produced good.

F5 286; Period A is not open for account type X: Production confirmations have been entered during closing before the next accounting period has been opened. Once the accounting period is open, select and save the failed records.

M7 018; Enter storage location: This common error is caused when the Issue Storage Location is blank on the Work Scheduling view of the material master. Double click and edit the record in COGI with the correct storage location, then press the Save button.  After correcting the record, update the Issue Storage Location field on the material master with the correct storage location to avoid future errors.

M7 121; You have no authorization for this transaction with movement type XXX: Have a user with the correct authorizations open this COGI and save to clear the error. Ensure that the user that tried to make this movement initially has the correct level of authorization if required.

M7 053; Posting only possible in period XXXX/XX and XXXX/XX in Company Code XXXX: This is not likely something you will see in a Production client, only in test systems, that is unless someone forgot to open the accounting period for accounting and material postings (tsk tsk). Change the posting date if incorrect by opening the COGI or open the correct periods, then save the COGI.

I think what I enjoyed most about my experience with COGI's was the feeling of accomplishment and pride when that total number dropped below 2000 and then 1000... and those days we saw zero! There was even a healthy competition during my second deployment between the three plants! I really enjoyed being the go-to person for such functionally integrated and fun problems. I hope you get the chance to be a COGI King or Queen!

                                                                            Creation of Planning Layout

Go to t.code: KP65

Click on Create

Select the Version, Period and Fiscal year in the General Data Selection in the Menu Bar Edit --> Gen data selection --> Gen data selection

Create the 3 Leading columns.

Double click on the 1^st Leading Column for Cost Centers

Double Click on the 2^nd Leading Column for Cost Elements

Double click on the 3^rd Leading column for Activity types

Double click on the next row key figure with characteristics

If you would like to add the more key figures you need to add the another row for the same.

                                                                      Creation of Planner Profile

Go to the t.code: KP34

Go to the New Entries

Double Click on the General Controlling on the Left hand side

Go to the New Entries

Select the Cost Ctrs: Cost Element / activity inputs

Double click on the Layouts for Controlling on the left side

Go to the New Entries

Select the Layout, Integrated Excel check box and File Description

Double Click on the Default parameters on the left side

Click on the overview on the application menu bar

Click on the Save file description, Save excel  layout and save the file format in the your Desktop.

                                                                 Upload of File

Fill the data according to the file format and convert in text (Tab delimited) format.

Go to the t.code: KE13 (This particular transaction code can be used for any excel upload in CO like KP26, KP06,KP46 etc.,)

Specify the File path and file description and execute

Execute or F8

File uploaded successfully.

With ST-A/PI 01Q* several new exception key figures were introduced for different areas (e.g. SAP ERP sales, SAP CRM sales & services, SAP APO). The feedback of first customers in our Business Process Improvement projects was overwhelming as root cause analysis becomes a quick and straightforward task. Hence we decided to provide further such key figures in the future. In my previous blog about exceptions during Period End Closing I already gave some heads-up that we will develop further such key figures in the area of Controlling. Now with the shipment of support package 1 for ST-A/PI 01Q* several new monitoring objects and key figures are available in the area of CO-PC. In Business Process Monitoring and Business Process Analytics you can find now some new application area Controlling for filtering. Under this application area you find some "old" monitoring objects like Cost Estimates and Schedule Manager Monitor that were already available in the application area Fincancials (where they still resides as well). But now we also provide new objects and key figures in Controlling.

In product cost planning (CO-PC-PCP) you can find now the new monitoring object Exceptions in Costing where you find two new key figures. One key figure is Exceptions during costing run which checks for alle error messages (no matter if it happened during the selection, costing, marking or releasing process) that were raised during any costin run in the defined reference period.

The other key figure is Exceptions during cost calculation CK11N which checks fr errors during costing itself that were performed in dialog mode.

In the are of cost object calculation (CO-PC-OBJ) one new monitoring object Exceptions in Cost Object Controlling was introduced with two new key figures Exceptions in WIP calculation

and Exceptions in Variance calculation

Finally in the area of actual costing (CO-PC-ACT) we introduced one new object Cost Calculations from Confirmations with the new key figure

Incorrect Cost Calculations from Confirmations which lists all cost posting errors that happened during order confirmation (no matter if it comes from a production, process or maintenance order etc.)

Further reading

Frequently Asked Questions about Business Process Monitoring and Business Process Analytics are answered under http://wiki.sdn.sap.com/wiki/display/SM/FAQ+Business+Process+Monitoring and

http://wiki.sdn.sap.com/wiki/display/SM/FAQ+Business+Process+Analytics respectively.

The following blogs (in chronological order) provide further details about Business Process Analytics and Business Process Monitoring functionalities within the SAP Solution Manager.

• New Business Process Monitoring functionalities in SAP Solution Manager – ALE / IDoc Monitoring
• New Business Process Monitoring functionalities in SAP Solution Manager – qRFC Monitoring
• New Business Process Monitoring Functionalities in SAP Solution Manager - functionalities For Inconsistencies in SAP Solution Manager
• SAP Business Process Monitoring within SAP Solution Manager
• New Business Process Monitoring functionalities in SAP Solution Manager - BPMon Trend Analysis Reporting
• Best Practice: Business Process Monitoring for Manufacturing
• Best Practice: Business Process Monitoring for Procure to Pay  
• Best Practice: Business Process Monitoring for Order to Cash
• Business Process Monitoring - Template configuration available for download
• FAQs about Business Process Monitoring
• Typical Use Cases for Business Process Monitoring in SAP Solution Manager
• New Business Process Monitoring functionalities in SAP Solution Manager - Customer Exit
• New key figure catalog for Business Process Monitoring available
• Why SAP offers different tools for Business Process Monitoring & Business Process Optimization
• Create your own auto-reaction messages in Business Process Monitoring via BAdI exit
• Protect your SAP ERP investment & improve your core business processes
• Refresh Solution Landscape cache for Business Process Operation Work Center
• Create your own customer-specific key figure for Business Process Monitoring within 5 minutes
• Best Practice: BW Process Chain monitoring with SAP Solution Manager - Part 1
• Best Practice: BW Process Chain monitoring with SAP Solution Manager - Part 2: Setup Example
• New key figures for Business Process Monitoring in SAP Solution Manager, especially for CRM Marketing
• New functionality "Business Process Analytics" - how to improve your business processes
• New key figures for Business Process Monitoring in SAP Solution Manager, especially Lead Time measurements
• Traditional Business KPI approach vs Business Process Monitoring
• Systematic errors vs real exceptions or improving efficiency vs effectiveness
• Before you get started with SAP HANA...you should also consider cleaning-up your backend system first
• Best Practice: Business Process Monitoring for CRM Sales
• SAP Business Process Operations Extensions at SAP TechEd 2011
• Business Process Operations dashboards - ALL AT A GLANCE
• Business Process Operations dashboards - behind the scenes
• Customer testimonials on Business Process Analytics
• Customer Exit: Create your own key figure for BPMon AND Business Process Analytics
• Heads-up: Setup environment of BPMon & Analytics changes with SolMan 7.1 SP5
• New key figures for BPMon & BP Analytics, especially for working capital improvement
• New Business Process Monitoring functionalities in SAP Solution Manager - BPMon Alert Reporting Analysis
• New Business Process Analytics features with SAP SolMan 7.1 SP5
• New Business Process Analytics - The filter sequence makes the difference
• New key figures: Analyzing/Monitoring exceptions during delivery due processing
• New key figure: Analyzing/Monitoring exceptions during billing due processing
• Enhanced key figures: Analyzing/monitoring SD invoices not transferred to FI
• New key figures: Analyzing/monitoring exceptions in CRM Sales or Service documents, Business Activities or Tasks
• New keyfigures: Analyzing/monitoring exceptions from APO planning runs
• New key figures for BPMon & BP Analytics - new exception and automation rate key figures for ERP plus new content for FSCM, APO and CRM
• New key figures: Analyzing/monitoring exceptions during Period End Closing

Symptoms

• You execute a drilldown report with output type "object list" (ALV - SAP list viewer). The report has too many columns (eg. more than 999 columns), the error message KH615 is displayed.

Environment

• SAP R/3 Releases
• SAP ERP Releases

Causes

• This is standard limitation and customer specific requirement.
• The error message is displayed due to the ALV tool you try to call don't support so much columns. Please see the message long text.

Steps to reproduce the error

1. KE30 -> 0-SAP01

 
2. Execute

3. Go to Menu -> Navigate -> Switch to Drilldown

4 . Click

5.  Screen is pop up

  
6. On pop up -> Select the characteristics

7. Click

8. On the status bar show information error

Resolution/Workaround

You can hide columns before you call the "Export" -> "Object list". Please mark a column (e.g. you click on "Sales Quantity") and use 'Edit' -> 'Column(s)' ->'On/Off' to deselect columns you don't want to be exported to the object list.

See Also

• This error could also be happened on other drilldown transaction eg KE80, S_ALR_87012078, CJE0
• SAP note 368974

Search term/Key Words

Drill-down, ALV call (object list)

Hi!

I was reading some post about valuate stocks at actual cost at Period End Closing, and most PPL say the only way to do that is with Material Ledger.

OK, The standard way to do that is activating Material Ledger. The 1st implementation of ML in my country (Peru)  was in 2001. But  there are some oldest implementations 1999 / 2000 in version 4.0  This manufacturing companies want to valuate at actual cost (average monthly) their production. In this days the consultancy create Ztcodes to "calculate" and valuate stocks is this way. sound difficult, but its real, i know 3 companies that did this stuff, i guess there are lot more.

One year ago i have the oportunity to replace the Zcosting in one company implementing Material Ledger. Letme tellyou what this Z do, its quite amazing!

1.  FERT and HALB are valuated at V .. yes, V!

2. Production Order GR is valuated at external value. This external value was a Standard Cost calculated daily, in order  to decrease the price difference between the GR and the theoric cost of the order at settlement (this work if no activity revaluation is done at actual cost)

3. they did activity calculation and production order revaluation.

4. At settlement, the unit cost become a mess, the problem is described in note Note 81682 - Pr.contr.V for semi-finished and finished products

5. They create a Z that do the multilevel exposion (the theoric, not the actual) and based on this explosion calculate the multilevel actual cost.

6. Based on the GI in SD and the stock, calculante the proportional amount that correspond to both.

7. Post FI COGS vs Price Difference

8. MR21 to revaluate (correct) Stocks vs Price Difference. They did the Close the 2nd day of the month, and the Z consider the GM done in the month.

9. The Customer say they try to calculate WIP at actual cost but they never accomplish this requirement.

9. This customer say that their process wasnt 100% accurate, but enough to face their requirement.

Well, this is history because they now have ML active!

Arturo.