SAP CO: Material Ledger with Inter and Intra company posting

Name: SAP CO: Material Ledger with Inter and Intra company posting
Rating: 4.7 (26 reviews)

Group Valuation-Additive cost with "Inter company" and Profit center Valuation-"Transfer Pricing" with "Intra company"

Highest Rated

Created byKaranam Sreedhar : SAP S/4 HANA Controlling-Subject Matter Expert

Last updated 1/2023

English

What you'll learn

Material Ledger Setup with Legal Valuation, Group Valuation and Profit center Valuation
Material Ledger Setup-Group Valuation-Inter company transaction with Markup say as Additive Cost
Material Ledger Setup-Profit center Valuation-Intra company transaction with Markup say as Transfer price
Group valuation - Mark up: PO & SO transaction for Inter company (Company code to Company code)transaction
Profit center valuation - Transfer price -STO for Intra Company (Plant to Plant)within the company code

Course content

3 sections • 27 lectures • 6h 56m total length

Introduction of Material Ledger with Inter and Intra company & Org Structure29:33
Controlling Area Setting and Versions with Legal,Group & Profit center Valuation29:26
Configure a controlling area across company codes and set legal, group, and profit center valuation versions. Set up currencies and number ranges, and enable inter and intra company postings.
Cost component structure with Delta Profit Company Code & Profit center17:55
Explore building a cost component structure for intercompany and intra company postings, linking delta profit company code and delta profit center with material, labor, and factory overheads.
Costing Variant & Costing types explanation for Group & Profit center valuation15:16
Variance calculation and Settlement configuration18:37
Configure variance calculation and settlement for product costing in SAP CO, covering period closing, production order actuals, goods issue, goods received, and intercompany postings and intra company postings.
Material Ledger-Legal, Group and Profit center Valuation Configuration24:59
Operating Concern Creating and Assign/Mapping6:39

New Company code setup for Cross company code transaction15:53
Set up a new company code for cross company code transactions, copying or manual creation. Assign to the controlling area and define plant, storage, purchasing, and sales in enterprise structure.
New Company Code's Plant Material Ledger Activation5:04
Activate and configure the new company code plant material ledger, covering currency type, price determination, actual costing, and number ranges, including cross-company code setup and initial testing.
Intercompany Business partners-Supplying Plant-Vendor & Delivery plant-Customer14:28
Create plant-specific vendor and customer master data linked to sending and receiving plants to enable intercompany and intra company postings and cross-plant deliveries.
Master data-Profit center-Cost center-GLs-Activity types preparation & OBYC26:49
Configure SAP CO material ledger for inter and intra company postings by defining master data, profit centers, cost centers, GL accounts, activity types, valuation class, and OBYC integration.
Material Master creation for the Both Plant with SPK15:58
Create a material master for plants 00 and 20, configure special procurement keys K1 and K20, and extend to plant 20 with bom, routing, and material ledger for multiple valuation.
Standard Cost estimation for both plants-- with Markup adding by additive cost29:49
Production Process of Sending (Suppling )Plant's material20:34
Learn to execute the production process for transferring material between plants, including standard cost estimation, production order creation, issue and goods receipt, and variance calculation and settlement.
Intercompany-Stock Transport Order Config for ML-Group Valuation testing purpose5:55
Configure intercompany stock transport orders for ml-group valuation by setting shipping data, cross-company links, and one-step delivery creation, with defined delivery types, availability checks, and document types.
PO & Delivery with PGI, with Accounting flow of Legal, Group valuations23:27
explains inter- and intra-company stock transfer in sap co with material ledger, detailing po creation, cross-company delivery, pgi, and the accounting flow for cogs, inventory, and price variances.
Transfer Posting-Configuration-301-cross company code11:10
Configure cross-company transfer postings in sap co by setting inventory clearing accounts, transfer price internal revenue, and trading partner mappings, and learn debit and credit entries for intercompany transfers.
Testing with transfer posting and Explained both scenarios impact of ML point13:55
Explore inter and intra company transfer postings in material ledger, detailing moment type 3.1 stock transfers, accounting entries, price differences, including inventory clearing account.

New Plant Creation for Plant to plant transfer posting12:02
Create a new plant for plant-to-plant transfer posting by copying existing intra- and intercompany configurations, and activate the material ledger after assigning sales organization, distribution channel, division, and shipping points.
New Plant Material Ledger Activation4:18
Business partner and Material Master creation for Intracompany transfer posting15:46
Explain intra company transfer posting within same company code by creating vendor and customer business partners, extending material KK1 to sending and receiving plants, and applying a transfer price markup.
Standard cost release and Production Process11:55
Explore standard cost estimation for inter- and intra-company postings, transfer pricing configuration with markup, stock transfer, BOM and routing, and production order accounting with profit center valuation.
Transfer Price Configuration and Transfer price (Markup) added14:23
Standard Cost estimation for receiving plant and explain the PC valuation of TP10:38
Intracompany transfer-Configuration6:03
Internal Revenue GL Configuration4:56
Configure a transfer price internal revenue GL account without a cost element, assign it to the valuation class and intra-company posting, and set up account determination for internal goods movement.
Transfer Price: Intra Company- Stock Transport order-Profit center valuation11:07
Explore intra-company stock transport orders and transfer pricing, contrasting intra with intercompany postings, and explain how replenishment deliveries between plants influence profit center valuation and group valuation through markup.

Requirements

SAP CO-Product Costing with Material Ledger Knowledge required.

Description

The integration of the "Material Ledger with Inter (Cross) and Intra-company transactions" provides an enhanced insight into the valuation and transfer pricing mechanisms within SAP S/4 HANA. Here's an elaboration on the two scenarios you've pointed out:

1) Inter (Cross) Company Transactions with Markup by Additive Cost

Scenario Overview: This involves transferring materials across two different company codes (intercompany). Typically, such transfers may carry a markup to reflect the profit margin of the selling entity.

Steps and Considerations:

a) Delta Cost Component - Company Code: This is the additional cost or markup that gets added during intercompany sales. This delta captures the difference between the manufacturing cost and the sales price.

b) Costing Type and Costing Variant: You'd need to define a specific costing type for intercompany markups and associate it with a costing variant. This allows for the proper capture of the additive costs during cost estimates.

c) Special Procurement Key: It's crucial to set up a special procurement type for intercompany transfers. This ensures the system knows how to treat these transactions during MRP (Material Requirement Planning) runs.

d) Additive Cost Creation: This is the step where you'd define the markup or additional cost. It's typically a percentage over the cost of production or a fixed amount.

2) Intra (Within) Company Transactions with Markup by Transfer Price

Scenario Overview: This involves transferring materials between plants within the same company code. Transfer pricing comes into play when these plants are treated as profit centers.

Steps and Considerations:

a) Delta Cost Component - Profit Center: Just like in the intercompany scenario, here too, we have a delta, but it's linked to the profit center to capture the transfer price between plants.

b) Costing Type and Costing Variant: You'd need a specific costing type for intracompany transfers. It would be associated with a costing variant to capture the transfer pricing during cost estimates.

c) Special Procurement Key: This would be for intracompany stock transfers, helping in recognizing the transaction type and ensuring proper treatment during MRP runs.

d) Transfer Price: This is the price at which one plant sells the material to another plant within the same company code. It's often used to evaluate the performance of different segments of the business (profit centers).

In Conclusion:

Both intercompany and intracompany transactions play a crucial role in modern organizations that are spread across regions and have multiple manufacturing units. With the Material Ledger, SAP S/4 HANA provides a comprehensive tool to capture these transactions with the necessary valuation layers, thereby offering greater transparency and accuracy in financial reporting

Who this course is for:

CPA , CMA , ACCA , CA , MBA , M Com, B Com students and Professionals, SAP FICO Consultants and End Users.

SAP CO: Material Ledger with Inter and Intra company posting

What you'll learn

Explore related topics

Course content

Introduction of Material Ledger with Inter and Intra company & Org Structure7 lectures • 2hr 22min

Material Ledger- Group Valuation with Intercompany transaction: Cross Company11 lectures • 3hr 3min

Material Ledger- Profit center Valuation with Intra company transaction9 lectures • 1hr 31min

Requirements

Description

Who this course is for: