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ERPCorp SAP FICO Blog
- Category: Blog
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By Paul Ovigele
Introduction
SAP Material Ledger allows you to run Actual Costing with the benefits and without the disadvantages of the two traditional methods of inventory valuation:
- Standard Costing
- Moving Average Costing
Before we explore SAP Material Ledger and Actual Costing, let's analyze these two approaches.
- Category: SAP Controlling
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by Ross Christoph
Goods Receipt/Invoice Receipt (GR/IR) clearing is an important part of the procure-to-pay process in SAP Materials Management (MM) and Financial Accounting (FI). The GR/IR clearing account temporarily records the value of goods received from suppliers until the corresponding supplier invoices are posted.
The purchasing process typically involves three documents:
- Purchase Order (PO): Specifies the materials or services ordered, quantities, and agreed prices.
- Goods Receipt (GR): Records the receipt of materials or services against the purchase order.
- Invoice Receipt (IR): Records the supplier invoice and verifies it against the purchase order and goods receipt.
When goods receipts and invoice receipts are posted, corresponding entries are recorded in the GR/IR clearing account. Matching entries can subsequently be cleared through the financial accounting clearing process.
Outstanding balances may indicate missing invoices, incomplete deliveries, or quantity differences requiring investigation.
In SAP S/4HANA, GR/IR reconciliation helps organizations identify outstanding differences and maintain accurate inventory, purchasing, and financial accounting records.
Read more: SAP GR/IR Clearing: Goods Receipt and Invoice Receipt
- Category: SAP Controlling
- Hits: 29776
By Tom King
Category 2 activity types are for indirect determination and indirect allocation.
Read more: SAP Activity Postings 2: Category 2 Activity Types
- Category: SAP Controlling
- Hits: 65451
SAP Activity Postings 1: Category 1 Activity Types
By Tom King
Next Blog: SAP Activity Postings 2: Category 2 - Indirect determination, Indirect allocation
Previous Blog: SAP Activity Postings: Activity Types Overview
Let's start with activity type category 1 (manual entry, manual allocation) which is the most common. Activity types defined with this category post directly from a cost center to a receiver cost object.
Look at the definition of activity type CATEG1 as shown at the top in Figure 1. In this case, Actl Acty Type Cat. (Actual Activity Type Category) is blank, which means it is the same as the plan activity type category, or 1 in this example.
- Category: SAP Controlling
- Hits: 89834
By Tanya Duncan
I recently used an interesting configuration in the valuation variant to value externally and intercompany purchased materials. My vertically integrated client has unique challenges.
They produce almost every raw material used in their finished goods, including packaging and machinery. The number of intercompany purchases is massive, and we needed a sustainable way to value purchased items and reference the purchasing conditions for intercompany markups and other charges like freight and shipping labor.
This configuration is a multi-step process, but it's fairly simple when all the pieces are configured correctly.
- Category: SAP Financials
- Hits: 90834
By Janet Salmon
This blog explores how changes in SAP Simple Finance will affect SAP Controlling including how accounts and cost elements will merge, what you can expect to see in Reporting and Planning, and how account-based CO-PA has been enhanced to provide better Profitability Reporting with Margin Analysis. Keep reading for a list of frequently asked questions that came up during the webinar on SAP Simple Finance 1503.
- Category: SAP Planning
- Hits: 85169
By Marjorie Wright
SAP Internal Orders are Controlling (CO) cost objects used to plan, collect, monitor, and settle costs for specific activities or purposes. They are commonly used for short-term projects, events, maintenance activities, marketing programs, and other initiatives that require separate cost tracking.
Cost centers typically represent ongoing organizational areas of responsibility, while Internal Orders provide more flexible cost tracking for specific activities, projects, or events.
- Category: SAP Planning
- Hits: 36293
By Mohamed Elshinnawy
Table of Contents
- Introduction
- SAP Planning and Budgeting
- Planning vs. Budgeting: Level of Detail
- Budget Availability Control
- Planning and Budgeting by Controlling Objects
- Glossary
Introduction
SAP planning and budgeting serve different purposes in Controlling (CO). Planning helps organizations estimate future costs, activities, and resource requirements, while budgeting establishes approved spending limits and supports financial control.
Planning can provide detailed information about expected costs and activities. Budgeting focuses on controlling spending against approved amounts, often using availability control to issue warnings or prevent postings when defined limits are reached.
SAP FICO expert and SAP Controlling speaker Mohamed Elshinnawy explains three important differences between planning and budgeting in SAP.
Read more: SAP Planning vs. Budgeting: Key Differences in SAP CO