500 results

  1. What Are Target Costs in Cost Center Accounting and Why Should You Calculate Them?

    Many reports that monitor cost center performance are incomplete because they account for the planned output rather than the actual output of the cost center. The author demonstrates how to use adjusted costs called target costs. Calculating target costs will provide you with a report that more accurately reflects the performance of your cost centers…....…

  2. Include Actual Costs in COGS with Material Ledger in Release 4.7

    Reading time: 14 mins

    Does your cost of goods sold (COGS) figure match your actual costs? Learn how to use new functionality in the material ledger to complete the value flow through R/3 and assign price differences to the cost of sales accounts to ensure that the COGS reflects the actual costs. Key Concept SAP uses the term “actual…...…

  3. Quality Management Order Functionality Helps You Manage Quality Defect Costs More Efficiently

    Reading time: 14 mins

    Discover how using Quality Management order functionality in SAP ERP Central Component effectively helps you record, track, and manage the costs resulting from quality defects. Key Concept Discover how using Quality Management order functionality in SAP ERP Central Component effectively helps you record, track, and manage the costs resulting from quality defects. Traditionally, organizations use…...…

  4. Capture Service and Maintenance Costs at Operation Level from SAP Enhancement Package 5 for SAP ERP 6.0

    Reading time: 12 mins

    Learn the settings to activate the enhanced table design functionality in SAP enhancement package 5. Discover its effect on your settlement options and the Financials reports you see. Looking at the costs per operation allows you to see the costs for each task performed for the order. Previously, all costs were assigned to the order…...…

  5. Understand Your Project Costs in an Engineer-to-Order Manufacturing Environment

    Financials/SCMIn the engineer-to-order manufacturing process, a product with the exact specifications desired by a company’s customers does not yet exist. Instead, you design and then produce the product specifically for that customer, using Project System (PS). As you collect costs and bill the customer, an accounting entry is made at each step; some of these…...…

  6. Use Templates to View Costs in Different CO Applications

    The Activity-Based Costing (ABC) module was first introduced in R/3 with Release 4.0 to allow users to access data in several other modules and to transfer costs or quantities from one to the other. This is accomplished with templates. Many users think that templates can only be used in the ABC module. However, from Release…...…

  7. Ask the FI/CO Expert: “How Can You Segregate the Expected Inbound Freight Costs in Manufactured Goods’ Standard Cost Estimates?”

    You can highlight estimated inbound freight costs in a Product Cost Estimate without having to do convoluted workarounds. The solution is the standard R/3 option called “Delivery Costs.” Learn what the Delivery Costs option is and how you can activate it. Key Concept   This month’s “Ask the Expert” question is one that several people…...…

  8. Improve Profitability by Monitoring Rework and Failure Costs with Failure Cost Processing

    Learn how to use failure cost processing for substandard or damaged finished goods rework. You can capture costs and view reports for better monitoring and control of the rework. Key Concept In manufacturing environments, rework operations are usually carried out with two traditional approaches: costs are collected in the same order or in a separate…...…

  9. Make Inventory Valuation More Accurate by Manually Adding Actual Costs to Materials

    In product cost controlling-based standard costing, various options exist to add additional costs to a product cost estimate, such as the use of an overhead costing sheet, an additive cost estimate, or statistical pricing conditions. Understand the solution to add actual costs manually to a material that is subjected to actual costing in the material…...…

  10. Calculate Actual Costs Across Multiple Company Codes Using a New Business Function in SAP Enhancement Package 5 for SAP ERP 6.0

    The material ledger records the flow of goods from the initial purchase of the raw material to the final sale of the finished product. It assigns any price differences incurred during purchasing and production to the product sold — or at least it does provided that the goods flow remains within a single company code…....…