
Explore the steel manufacturing process from raw material preparation to primary steel. Compare basic oxygen furnace and electric arc furnace routes, including sintering, hot metal, casting, and co-product costing.
Define the enterprise structure for a steel company by creating the company, plants (steel manufacturing, coke, sinter), sales, distribution, divisions, storage locations, purchasing organization, and shipping points.
Learn to configure financial accounting settings in SAP S/4HANA for steel manufacturing, covering chart of accounts, account groups, secondary cost elements, retained earnings, and posting periods.
This lecture guides you through creating a controlling area in SAP S/4HANA, configuring its ledger, currency, and chart of accounts, and linking it to financial accounting.
Explain the steel cost component structure, detailing inputs, materials, and activities for basic oxygen and electric arc furnaces, including byproducts, overheads, and split valuation options.
Map cost component structures to materials and cost elements in SAP S/4 HANA. Define fixed and variable costs, roll up costs, and assign byproducts and manufacturing costs.
Configure costing variant PPC1 to enable standard cost calculation by setting valuation, costing type data, and quantity structure for accurate material cost estimation and activity cost.
Explore PPP1 and PPP2 costing variants for preliminary and simultaneous cost calculation, showing how preliminary cost uses planned quantity times standard cost, and simultaneous cost uses actual production data.
Master variance calculation and settlement configuration in SAP CO product costing for steel manufacturing, including allocation structures, settlement profiles, and cost elements for production orders.
Design profit centers and cost centers based on the steel manufacturing process, mapping revenue generating units to profit centers and expenses to cost centers, and align work centers for production.
Learn to configure cost splitting in SAP CO by mapping cost elements to production activity types within a splitting structure that allocates expenses from cost centers to production costs.
Explain prerequisites for activity type calculation, distinguish dependent from independent activity types, and show how to split plan costs into activity type rates using plan vs actual cost data.
Configure the material ledger and ledger configuration, set currency types and price determination, and activate actual costing for a three-plant production startup (center, coke, steel).
A). For Sinter (material) Mfg Process , Input materials are Iron Ore and Lime stone materials creation
B). For Coke(material) Mfg Process, Input material is Coal material creation
A). For Sinter (material) Mfg Process , BOM , Work center and Routing creation
B). For Coke(material) Mfg Process, BOM , Work center and Routing creation
A). Standard Cost estimation, Marking and Release for initial manufacturing material "SINTER" in Sintering Plant.
B). Standard Cost estimation, Marking and Release for initial manufacturing material-"COKE" in coke plant.
a). Business partner creation with BP role vendor
b). Purchase order, Goods Receipt done for the input materials
For Sinter (material) Mfg Process , Input materials are Iron Ore and Lime stone
For Coke(material) Mfg Process, Input material is Coal
Learn to model and execute the sinter and coke production processes in SAP S/4HANA, including production versions, routing, planning, goods issue, confirmation, and variance analysis for accurate cost reporting.
Learn how to use sap co product costing in steel manufacturing by creating hot metal inputs, bills of materials, work centers, and routings, with cross-plant special procurement.
Create a hot metal standard cost estimate from routing and work centers, integrate bill of material and material master data, and apply production cost calculations across digital plants.
Learn SAP CO product costing for steel manufacturing, focusing on DRI material-bom and routing, including iron ore and coal inputs, EAF and BOF processes, and cost estimation workflows.
Demonstrate standard cost estimation and production planning for steel in SAP CO costing on S/4 HANA, using iron ore, coal, and a bill of materials.
Learn to create primary steel material and manage by-products and co-products, including slag and dust, using two bills of materials and two routings in basic oxygen furnace and arc furnace.
Learn primary steel material costing in SAP CO product costing, including co-products and byproducts, mixing ratios for BOF and EAF, and cost estimation with BOM and routing.
Create slabs, blooms, and billets as co-products in SAP CO Product Costing for steel manufacturing, detailing material creation and cost estimation via MRP and production orders.
Explore SAP co-product costing in steel manufacturing by modeling slabs, blooms, and billets as co-productions, using a single production order to allocate costs to outputs.
Configure make-to-order in sap s/4 hana, implement sales-order costing for fg materials, create mto materials, and set assembly and costing variants per customer.
Demonstrates make-to-order steel plates production in SAP S/4HANA using sales costing, linking production orders to customer requirements and a three-material bill of materials.
Explore the finished product make-to-order flow in SAP S/4 HANA steel manufacturing. See how rails-blooms and zelada materials drive sales, production orders, inventory, and delivery planning.
Explore how fi expenses are booked to a common cost center, then allocated to production cost centers using planned and actual rates, activity hours, and cost elements in sap co.
Explore SAP CO product costing using SKF data to allocate expenses from common cost centers to production cost centers, establishing an assessment cycle and production-based cost allocation.
Create assessment cost elements and an assessment cycle to allocate common expenses to production cost centers, using category 42 primary cost elements and sender-receiver key figures.
Execute the KSU5 assessment cycle to transfer common expenses to production cost centers based on cost elements. Verify no errors before posting allocations and confirm absorption.
Master co-product settlement and variance calculation in SAP CO for steel manufacturing, performing preliminary settlements for co-products, then executing order settlement and price difference postings.
Steel manufacturing involves a plethora of steps, and product costing for this industry is intricate. SAP CO provides the necessary tools and functionalities to enable accurate product costing, aiding steel manufacturing enterprises in efficient costing processes.
Let's elaborate on the SAP CO implementation for product costing in the steel manufacturing sector:
1. SAP Implementation in Steel Industry: Implementing SAP in the steel industry requires an in-depth understanding of industry-specific processes. The complexity of the steel manufacturing processes requires a tailored SAP solution to ensure that the processes are efficiently mapped and executed in the system.
2. Course Structure: This course, beneficial for consultants aiming to implement SAP in the steel sector, should be structured with practical live scenarios, taking into account industry best practices and the specific nuances of steel manufacturing.
3. Manufacturing Processes in Steel Industry:
Iron Making:
Iron ore, limestone, and coke are processed in a blast furnace to produce sinter.
Sintering is a vital process as it provides a rich raw material for iron making while reducing waste.
Coke, produced from different grades of coal, acts as a reducing agent in the blast furnace.
Primary Steel Making:
The produced hot metal is then combined with scrap steel.
Two primary processes are:
Basic Oxygen Furnace (BOF): Uses hot metal from the blast furnace and steel scrap. This is a widespread method.
Electric Arc Furnace (EAF): Uses Direct Reduced Iron (DRI) and scrap metal. This method is increasingly becoming popular due to its environmental benefits.
Depending on the client's requirements, mixed costing processes might be utilized, combining both BOF and EAF methods.
Secondary Steel Making:
This process forms SLABS, BILLETS, and BLOOMS, which are fundamental materials used in various applications.
4. Month-end Closing in Costing:
F-02: Book all the financial expenses to a common cost center. This captures all costs, ensuring they are allocated in subsequent steps.
KB31N: Enter statistical key figures (SKF) data for production cost centers, which aids in accurate overhead allocation based on actual production data.
KSU1: Create assessment cycles. These cycles define how internal costs are distributed among various cost objects.
CPTD: Allocate actual overheads using templates. This ensures overheads are distributed based on predefined standards or patterns.
KSU5: Run the assessment cycle. This step allocates the costs from sender cost centers to receiver cost objects based on the rules defined in the assessment cycle.
KSS2: Split costs based on activities. This distributes costs based on actual activity consumption.
KSII: Calculate actual activity rates. This updates the plan rates with actual rates, providing more accurate costing.
CON2: Revaluate orders based on the updated rates. This ensures that order costs are aligned with the most recent costing data.
CO8B: Settle the costs of co-products. Co-products often share production costs, and this step ensures that costs are distributed fairly based on predefined rules.
KKS1: Calculate variances. This step identifies any differences between planned and actual costs.
CO88: Finally, settle production orders. This moves costs from production orders to finished goods, closing the loop on the production costing process.
Overall, implementing SAP CO for product costing in the steel industry provides an integrated approach to capturing, allocating, and analyzing production costs. When correctly configured and utilized, SAP CO enables steel manufacturers to get insights into their costs, thereby aiding in cost optimization and better decision-making.