Business Process Integration - II

Exercises

(Version 4.1 – Release July 2007)

Version 4.1 – July 20072007 SAP AG and The Rushmore Group, LLC

Business Process Integration II – (BPI – II)

Unit 1: Business Process Integration I Review

No Exercises for Unit 1

Unit 2: Controlling (CO) –Overview and Organizational Structure

Exercise 1: Create Controlling Area

Purpose of Exercise
This exercise is to create a controlling area with the purpose of tracking costs for Pen Inc. The controlling area is an organizational unit in accounting used to subdivide the business organization from a cost accounting standpoint.
A company code is assigned to one and only one controlling area 1:1 relationship. However, to facilitate cross company code reporting and cost allocation more than one company code can be assigned to a controlling area 1:n relationship.

Navigation

Menu Path / Tools  Customizing  IMG Execute Project
Enterprise Structure DefinitionControlling  Maintain Controlling Area
Trans Code

Doubleclick on Maintain Controlling Area

Enter the following information:

Click on the button.

Click on

Insert Company CodeC_ _ _

Person ResponsibleYour user name

Assignment control Controlling area same as company code

Verify the following settings:

Currency type10 (Company code currency)

CurrencyUSD

Chart of accountsC_ _ _

Fiscal year variantK1

 (Save)

Record the system message:

Message

Exercise 2: Assign Company Code to Controlling Area

Purpose of Exercise

This exercise is to assign the company code to a controlling area. All company codes assigned to a controlling area must use the same chart of accounts and fiscal year variant. More than one company can be assigned to the controlling area.

Navigation

Menu Path / Tools  Customizing  IMG Execute Project
Enterprise Structure  Assignment Controlling
Assign company code to controlling area
Trans Code

Enter the following information:

Click on the line with your Controlling Area

Doubleclick on Assignment of company code(s)

Click on the button.

Enter C_ _ _

 (Save)

Record the system message:

Message

Exercise 3: Create CostCenter Standard Hierarchy

Purpose of Exercise
This exercise is designed to provide a name for your standard hierarchy. Indicated hierarchy of a cost center group in which all cost centers in a controlling area are gathered together. All cost centers are attached to a cost center group which is part of a hierarchy.

Navigation

Menu Path / Tools  Customizing  IMG Execute Project
Controlling General Controlling Organization Maintain Controlling Area
Trans Code

Doubleclick on Maintain Controlling Area

Click on the line with your Controlling area

System Menu: Goto Details

CCtr Std Hierarchy:PENINC_ _ _

 (Save)

Select “YES” to confirm the message

 (Back)

Double Click “Activate components/control indicators”

Click on the button.

Enter the following information:

Fiscal year Current Year

Activate Components

Cost Centers Component active

Order Management Component active

Commit.ManagementComponent active

 (Save)

Record the system message:

Message

Unit 3: Financial Accounting (FI) – Master Data

Exercise 4: Create Raw Materials Inventory Account

Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Raw Materials Inventory account using your trading goods inventory account as the reference model. An inventory account is an asset account located in the Balance Sheet that records the value of the current inventory.

Navigation

Menu Path / Accounting Financial Accounting General Ledger Master Records
G/L Accounts  Individual Processing  Centrally
Trans Code

Enter the following information:

G/L Account:200_ _ _

Company Code:C_ _ _

 (Create)

Type/Description TAB

Control in chart of accounts

Account GroupBalance sheet accounts

Select Radio Button Balance sheet account

Description

Short Text:Raw Materials Inv

G/L Acct Long TextRaw Materials Inventory

Control Data TAB

Account control in company code

Account Currency USD

Select:“Only balances in local crcy”

Account management in company code

Select: “Line item display”

Sort key: 001

Create/bank/interest TAB

Control of document creation in company code

Field status group:ZALL

Select“Post automatically only”

 (Save)

Record the system message:

Message

Exercise 5: Create Finished Goods Inventory Account

Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Finished Goods Inventory account using your trading goods inventory account as the reference model. An inventory account is an asset account located in the Balance Sheet that records the value of the current inventory.

Navigation

Menu Path / Accounting Financial Accounting General Ledger Master Records
G/L Accounts  Individual Processing  Centrally
Trans Code

Enter the following information:

G/L Account:202_ _ _

Company Code:C_ _ _

 (Create)

Type/Description TAB

Control in chart of accounts

Account GroupBalance sheet accounts

Select Radio Button Balance sheet account

Description

Short Text:Finished Goods Inv

G/L Acct Long TextFinished Goods Inventory

Control Data TAB

Account control in company code

Account Currency USD

Select:“Only balances in local crcy”

Account management in company code

Select: “Line item display”

Sort key: 001

Create/bank/interest TAB

Control of document creation in company code

Field status group:ZALL

Select“Post automatically only”

 (Save)

Record the system message:

Message

Exercise 6: Create Raw Materials Expense Account

Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Raw Materials Expense account using your trading goods expense account (721_ _ _) as the reference model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

Navigation

Menu Path / Accounting Financial Accounting General Ledger Master Records
G/L Accounts  Individual Processing  Centrally
Trans Code

Enter the following information:

G/L Account:720_ _ _

Company Code:C_ _ _

 (Create)

Type/Description TAB

Control in chart of accounts

Account GroupProfit and loss accounts

Select Radio Button P&L statement acct

Description

Short Text:Raw Mat. Consp/Exp

G/L Acct Long TextRaw Materials Consumption / Expense

Control Data TAB

Account control in company code

Account Currency USD

Select:“Posting without tax allowed”

Account management in company code

Select: “Line item display”

Sort key: 001

Create/bank/interest TAB

Control of document creation in company code

Field status group:ZALL

 (Save)

Record the system message:

Message

Exercise 7: Create Finished Goods Expense Account

Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Finished Goods Expense account using your trading goods expense account (721_ _ _) as the reference model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

Navigation

Menu Path / Accounting Financial Accounting General Ledger Master Records
G/L Accounts  Individual Processing  Centrally
Trans Code

Enter the following information:

G/L Account:722_ _ _

Company Code:C_ _ _

 (Create)

Type/Description TAB

Control in chart of accounts

Account GroupProfit and loss accounts

Select Radio Button P&L statement acct

Description

Short Text:Fin Goods Consp/Exp

G/L Acct Long TextFinished Goods Consumption / Expense

Control Data TAB

Account control in company code

Account Currency USD

Select:“Posting without tax allowed”

Account management in company code

Select: “Line item display”

Sort key: 001

Create/bank/interest TAB

Control of document creation in company code

Field status group:ZALL

 (Save)

Record the system message:

Message

Exercise 8: Create Labor Expense Account

Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Labor Expense account using your rent expense account (780_ _ _) as a model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

Navigation

Menu Path / Accounting Financial Accounting General Ledger Master Records
G/L Accounts  Individual Processing  Centrally
Trans Code

Enter the following information:

G/L Account:710_ _ _

Company Code:C_ _ _

 (Create)

Type/Description TAB

Control in chart of accounts

Account GroupProfit and loss accounts

Select Radio Button P&L statement acct

Description

Short Text:Labor Expense

G/L Acct Long TextLabor Expense

Control Data TAB

Account control in company code

Account Currency USD

Select:“Posting without tax allowed”

Account management in company code

Select: “Line item display”

Sort key: 001

Create/bank/interest TAB

Control of document creation in company code

Field status group:ZALL

 (Save)

Record the system message:

Message

Exercise 9: Create Production Order Settlement Account

Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Production Order Settlement account using your rent expense account (780_ _ _) as a model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

Navigation

Menu Path / Accounting Financial Accounting General Ledger Master Records
G/L Accounts  Individual Processing  Centrally
Trans Code

Enter the following information:

G/L Account:731_ _ _

Company Code:C_ _ _

 (Create)

Type/Description TAB

Control in chart of accounts

Account GroupProfit and loss accounts

Select Radio Button P&L statement acct

Description

Short Text:Prod Ord Settle Exp

G/L Acct Long TextProduction Order Settlement Expense

Control Data TAB

Account control in company code

Account Currency USD

Select:“Posting without tax allowed”

Account management in company code

Select: “Line item display”

Sort key: 001

Create/bank/interest TAB

Control of document creation in company code

Field status group:ZALL

 (Save)

Record the system message:

Message

Exercise 10: Create Production Variance Account

Purpose of Exercise

The purpose of this exercise to create GL accounts that will be needed to expand Pen Inc. to include both controlling and production. Create a Production Variance account using your rent expense account (780_ _ _) as a model. An expense account is located in the Profit and Loss Statement that records the value of the expenses incurred.

Navigation

Menu Path / Accounting Financial Accounting General Ledger Master Records
G/L Accounts  Individual Processing  Centrally
Trans Code

Enter the following information:

G/L Account:762_ _ _

Company Code:C_ _ _

 (Create)

Type/Description TAB

Control in chart of accounts

Account GroupProfit and loss accounts

Select Radio Button P&L statement acct

Description

Short Text:Prod Var Exp

G/L Acct Long TextProduction Variance Expense

Control Data TAB

Account control in company code

Account Currency USD

Select:“Posting without tax allowed”

Account management in company code

Select: “Line item display”

Sort key: 001

Create/bank/interest TAB

Control of document creation in company code

Field status group:ZALL

 (Save)

Record the system message:

Message

Unit 4: Controlling (CO) – Master Data

Exercise 11: Maintain CostCenter Standard Hierarchy

Purpose of Exercise

The purpose of this exercise is to create the following cost center structure. This will enable you to capture costs in a manner which is meaningful to you. A cost center is an area of responsibility within a company, which causes and influences costs. In this exercise create the Cost centers listed below.

(Please make sure you assign the Cost centers to the correct group of your standard hierarchy.)

PENINC_ _ _ (Standard Hierarchy)
ADMIN_ _ _ (Cost Center Group / Hierarchy Area)
ADMINCost Centers
A005 – Acct-Finance(category = W )
A010 – Administration(category = W )
A015 – Purchasing (category = G )
A020 – Information Tech. (category = H )
SALES_ _ _ (Cost Center Group / Hierarchy Area)
SALESCost Centers
S005 – Sales(category = V )
S010 – Marketing(category = V )
DIST_ _ _ (Cost Center Group / Hierarchy Area)
DISTRIBUTION – PRODUCTION Cost Centers
D005 – Warehouse(category = F )
D010 – Production(category = F )

Navigation

Menu Path / Accounting ControllingCostCenter AccountingMaster Data
Standard Hierarchy  Change
Trans Code

The system may ask you to enter the Controlling area

Enter:C_ _ _

 (Enter)

Enter the following information:

Click on Standard Hierarchy: PENINC_ _ _

Group name Pen_ _ _ Standard Cost Hierarchy

 (Create)

SelectLower-Level Group

Group Name =ADMIN_ _ _

Description = Administration

 (Create)

SelectGroup at Same Level

Group Name = SALES_ _ _

Description = Sales

 (Create)

SelectGroup at Same Level

Group Name = DIST_ _ _

Description = Distribution/Production

 (Enter)

Click on ADMIN_ _ _

 (Create)

SelectCostCenter

Create the ADMIN Cost Centers:

  • A005 – Accounting/Finance(cost center category = W )
  • A010 – Administration(cost center category = W )
  • A015 – Purchasing(cost center category = G )
  • A020 – Information Tech(cost center category = H )

Valid from: 01/01/2007 to: 12/31/9999

Organization Tab(for all Cost Centers)

Currency:USD

Indicators Tab(for all Cost Centers)

Remove the check mark from Commitment update

Click on SALES_ _ _

 (Create)

SelectCostCenter

Create the SALES Cost Centers:

  • S005 – Sales (cost center category = V )
  • S010 – Marketing(cost center category = V )

Click on DIST_ _ _

 (Create)

SelectCostCenter

Create the DIST Cost Centers:

  • D005 – Warehouse (cost center category = F )
  • D010 – Production(cost center category = F )

 (Save)

Record the system message:

Message

Exercise 12: Create Primary Cost Elements

Purpose of Exercise

This exercise creates the primary cost elements. Primary cost elements have a one to one relationship with the PL expense accounts in the GL. The primary cost elements are the link between FI and CO, they are used for entering costs within the entire accounting system, it is a cost that originates outside of the company.

Navigation

Menu Path / Accounting Controlling Cost Element AccountingMaster Data
Cost Element Individual Processing Create Primary
Trans Code

Create Primary cost elements for the listed expense accounts:

Cost Element From table below (e.g.710000)

Valid From:01/01/2007 to: 12/31/9999

Select or (Enter)

Basic Data TAB

CElem category1

 (Save) and repeat for each primary cost element

For Cost Element 770_ _ _ (Information Technologies Expense)
Default Acct Assignmt Tab
Cost Center A020 *** See Below for Accounts that need this ***

Cost ElementDescriptionCost element categoryDefault Account Assign

(Account)

710_ _ _Labor Expense1

720_ _ _Raw MaterialsConsumption Expense1

721_ _ _Trading Goods Consumption Expense1

722_ _ _Finished Goods Consumption Expense1D010

731_ _ _Production order settlement Expense22

740_ _ _Supplies Expense1

750_ _ _Utilities Expense1

760_ _ _Purchase Price Difference Expense1

762_ _ _Production Variance Expense1D010

770_ _ _ Information Technology Expense1A020

780__ _Rent Expense1

781_ _ _Miscellaneous Expense1

790_ _ _ Cost of Goods Sold1D010

Record the system message:

Message

Exercise 13: Create Secondary Cost Elements

Purpose of Exercise

This exercise enables the creation of secondary cost elements. Secondary cost elements are used when the original identity of the cost in not directly related to the transaction.

Navigation

Menu Path / Accounting Controlling Cost Element AccountingMaster Data
Cost Element Individual Processing Create Secondary
Trans Code

Cost elementName/DescriptionCost element category

800_ _ _Labor43 (Internal Activity)

810_ _ _IT Assessed costs42 (Assessment)

820_ _ _Internal Orders Settlement21 (Internal Settlement)

830_ _ _Production Order Settlement21 (Internal Settlement)

For each of the above cost elements enter the following information:

Cost element: Enter number (e.g.800_ _ _)

Valid From:01/01/2007 to: 12/31/9999

Select or (Enter)

Name/Description:see above list

Cost element categorysee above list

 (Save)and repeat for each secondary cost element

Record the system message:

Message

Exercise 14: Create Cost Element Groups

Purpose of Exercise

This exercise is used to create cost element groups. These groups facilitate working with the cost elements. A cost element “group” is an organizational unit consisting of a particular collection of cost elements.

Navigation

Menu Path / Accounting Controlling Cost Element AccountingMaster Data
Cost Element Group Create
Trans Code

For Example:

CodeCost Element Group

TOTAL_ _ _Total Cost Elements for C_ _ _

PCOST_ _ _Total Primary Cost Elements for C_ _ _

SCOST_ _ _Total Secondary Cost Elements for C_ _ _

Create the following Cost element group structure with the following information:

Cost element group:TOTAL_ _ _

 (Enter)

Enter name of Cost Element Group:Total Cost Elements for C_ _ _

Click on :PCOST_ _ _

Description:Total Primary Cost Elements for C_ _ _

Click on :SCOST_ _ _

Description:Total Secondary Cost Elements for C_ _ _

 (Enter)

Click on PCOST_ _ _

Select

Enter value interval 700000 - 799999

 (Enter)

Click on SCOST_ _ _

Select

Enter value interval 800000 - 899999

 (Enter)

 (Save)

Record the system message:

Message

Exercise 15: Create Statistical Key Figure

Purpose of Exercise

This exercise is used to create a statistical key figure that will be used as the basis for distribution of rent and utilities. Statistical key figures can be used in calculations, reports and other internal cost allocation tools like assessment and distribution (e.g. square footage, headcount, personnel count, phones, etc.).

Navigation

Menu Path / Accounting ControllingCostCenter AccountingMaster Data
StatisticalKey Figures Individual Processing Create
Trans Code

Enter the following information:

Stat. key figure:SQFT

 (Enter)

Basic data

NameSquare Footage

Stat. key fig. UnM.FT2

Key fig. cat.Fxd Val.

 (Save)

Record the system message:

Message

Unit 5: Controlling (CO) – Rules

Exercise 16: Create Controlling (CO) DocumentNumberRanges

Purpose of Exercise
This exercise will assign different types of controlling documents to specific number ranges. Since SAP is a document based system, each document must be assigned a number within a given number range made available to the document type being created.

Navigation

Menu Path / Tools  Customizing  IMG Execute Project
Controlling General Controlling Organization
Maintain NumberRanges for Controlling Documents
Trans Code

Press Copy button

From:C999(or US01)

To:C_ _ _

 (Copy)