SAP FICO

When Should You Use / Not Use Product Cost by Order?

When Should You Use Product Cost by Order?

For individual or lot-related production. It is typically used for order-related production or for batch-related process manufacturing. Production is based on orders for which production and the cost analysis of a certain lot size are the priority.

For test production/start-up production (for planned repetitive manufacturing) for the exact determination of planning data (for example, variance analysis)

When you want to calculate WIP at actual costs

When you want to allocate your lot-size-independent costs

When you want to schedule your orders accurately.

When Should You Not Use Product Cost by Order?

For repetitive manufacturing (stable and continuous production), since the production of one material is the main priority over a long period of time

When you want to calculate WIP at target costs

When you want to calculate WIP (at target costs) and variances at the same time.

Difference between ECC 6.0 vs 4.7EE - SAP FI / SD / MM / ABAP (Functional & Technical)

ECC means Enterprise Central component.

SAP R/3 4.7 is based on the 3-tier architecture. SAP is continuously upgrading the software, which is called as release versions for example SAP R/3 4.6C, SAP 4.7....

Now SAP evolved into using the Internet technology and is called as service oriented architecture (SOA). There are lots of functionalities available in ECC 5.0 and ECC 6.0 compared to R/3 in integrating with other systems. Probably to understand the specific release dependent changes, you can go thro the help documentation. For example to understand the diff between ECC 6.0 and ECC 5.0 please go thro the link:

Release Notes for SAP ERP Central Component (English) – Click here

Some of the differences in SD Module are:

1. Document Flow

In ECC 6.0, the flow of sales documents is seen much better and improved as compared to 4.6C. Once you look at the screen, you will clearly figure out the difference.

2. Sales Order Look and Feel

There are more tabs in ECC 6.0 for Item Level Details.
The Sales Doc. appears as supremely perfect.

3. ECC 6.0 is built on Net Weaver Technology (that possess SOA i.e. service oriented architecture), Hence more reliable and improved as compared to previous one.

Release Notes for SAP ERP Central Component (English) – Click here

Some of the differences ABAP Module side:

For installing ECC 6.0 you required a solution manager key. With out solution manager key you cannot install ECC6.0.
ECC 6.0 is called net weaver component here you have ABAP+JAVA stack & for installing 4.6 you don't require solution manager key. It only having ABAP stack.
ECC6.0 supports UNCODE & 4.6C supports NONUNICODE.
Major difference is ECC6 is net weaver product having WASJAVA+ABAP - secondly support Unicode apart from this we have other diff. you can get from master guide from service.sap.com/instguides.

5. In terms of ABAP some function modules are obsolete in 4.7. e.g. WS_UPLOAD, WS_DOWNLOAD etc. You can find the list of obsolete FMs in the table RODIR. These need to be replaced in the ECC System.

6. Also ECC is very strict in case of EPC Errors. You need to check the EPC and remove the call function interface errors where it says SLIN observes catching of a runtime error. These might work with no issues in 4.7 but will short dump in ECC.

7. If you are doing to a Unicode conversion also. You need to check the transaction UCCHECK for Unicode errors. You also need to replace obsolete statements like >< and => , =< etc.

8. If you want to know more ABAP changes go to transaction ABAPDOCU and there is a node ABAP Changes by Release. You can see more ABAP Changes version by version here.

9. ECC is more towards OOPS concepts, ECC is very developer friendly

10. It has new debugger.

11. New Enhancement Framework is introduced in ECC.

12. It is more efficient to use Adobe forms in ECC.

13. 5.0 ECC - Build in Net Weaver Platform & 6.0 ECC - Build in Net Weaver Platform with Solution Manager

14. ECC has new options in BADIs where you can create your own badis and implement it.

15. You have new concept called Implicit and explicit source code plugins in ECC.

16. Has webdynrpo component accessible from SE80 transaction Itself.

Some of the differences FI Module side:

1. ECC 6.0 enables Business area posting - Segment reporting made easy.

2. Profit center accounting is through new GL.

3. Document splitting: Split of entry to post assets and liabilities to respective profit centers. (Balance sheet items)

4. Enables commitment of FM, improved CRM feature & Mobile sales feature

Here are the list of Transactions not their in ECC 6.0

QAS1 Download Insp. Specs. (Obsolete)
QAS2 Download Basic Data (Obsolete)
QAS3 Upload Results (Obsolete)
QAS4 Upload UD (Obsolete)

WLF1K Report used to generate WLF1K is: SAPLWLF1
O07C Report used to generate O07C is: SSFPSEMAINT

Check the below links to download the PDF files for the release notes of MM Module:

ECC 5.0 - MM Module Release notes

SAP R/3 MM Module Release notes

Some of the differences Basis/Technical Module side:

If you're "Basis/Technical", focusing on the underlying technical "Basis" or "NetWeaver" versions will help you stay on the right track. Technically, ECC 6.0 is 2 "technology" versions higher. Following is the terminology/version information for the last 3 ERP product versions:

SAP R/3 Enterprise (4.7x)
SAP BASIS 6.20

SAP ERP 2004
SAP NetWeaver 2004 (BASIS 6.40)
ECC 5.0

SAP ERP 2005
SAP NetWeaver 2004s (BASIS 7.00)
ECC 6.0

The main technology feature delivered with NetWeaver is the integrated J2EE engine (Web Application Server Java).

You can use the below link for finding the differences between the 2 versions.
http://solutionbrowser.erp.sap.fmpmedia.com/

Can find the difference in release notes of each SAP version. Here are the links.

http://help.sap.com/saphelp_47x200/helpdata/en/fc/e3003deddfae4de10000000a114084/frameset.html

http://help.sap.com/saphelp_scm50/helpdata/en/28/b34c40cc538437e10000000a155106/frameset.html

http://help.sap.com/saphelp_erp2005/helpdata/en/43/68805bb88f297ee10000000a422035/frameset.html

SAP - FI ECC 6.0 New GL Functionality Config

Activate the New General Ledger Accounting by a single click on the clock icon. You will reach to change view "activation of New GL A/cg" detail screen and tick the checkbox and save.
After activation of New General Ledger Accounting, you exit the IMG screen when you re-enter, you find that a new node is added Financial Accounting (New)
After activation of New General Ledger Accounting; a new sub node appears in the IMG structure. This sub node is Define Segment The menu path is: SAP Customizing IMG ---> Enterprise Structure ----> Definition --> Financial Accounting --> Define Segment In this IMG activity, you define your segments. If you then define your profit centers, you can enter an associated segment in the master record of a profit center. The segment is then derived from the assigned profit center during posting.
Activation has created a new field in Profit Center Master Record: the SEGMENT
Leading and Non- Leading Ledgers In General Ledger Accounting. You can use several Ledgers in parallel. This allows you to produce financial statements according to different accounting principles. A ledger uses several dimensions from the totals table it is based upon. When defining Ledgers, one must be defined as the Leading Ledger. The Leading Ledger is based on the same accounting principles as that of the consolidated financial statements. It is integrated with all subsidiary ledgers and is updated in all company codes. This means that it is automatically assigned to all company codes. In each company code, the Leading Ledger receives exactly the same settings that apply to that company code: the currencies, the fiscal year variant and posting period variant. You must designate one of your ledgers as the Leading Ledger. It is not possible to designate more than one ledger as the leading ledger. The menu path is: SAP Customizing IMG ----> Financial Accounting (New) -----> Financial Accounting Basic Settings (New) -----> Ledgers --- -> Ledger -----> Define Ledgers for General Ledger Accounting Clicking on the checkbox identifies one of your ledgers as the Leading Ledger.
Activation of Non Leading Ledgers Non Leading Ledgers are parallel ledgers to the Leading Ledger. They can be based on local accounting principle, for example. You have to activate a non- Leading Ledger for individual company codes. Non- Leading Ledgers can have different fiscal year variants and posting period variants per company code to the Leading Ledger of this company code. The menu path is: SAP Customizing IMG ----> Financial Accounting (New) ----- > Financial Accounting Basic Settings (New) -----> Ledgers - ---> Ledger -----> Define and Activate Non --Leading Ledgers
Assign scenarios to ledgers : A Scenario combines Customizing settings from different business views. Each business view specifies which posting data is transferred from different application components in General Ledger Accounting, such as cost Center update or Profit Center update .You assign the desired scenarios to your ledgers. For each ledger, you define which fields are filled with posting data from other application components. SAP delivers a number of scenarios in the standard system. It is not possible to create additional scenarios. The menu path is: SAP Customizing IMG -----> Financial Accounting (New) ----- > Financial Accounting Basic Settings (New) -----> Ledgers - --->Fields -----> Display Scenarios for General Ledger Accounting.
Cost of sales accounting : Cost of sales accounting is a way to create a profit and loss statement (P&L) for a company by comparing the revenues to the costs or expenses incurred to obtain these revenues. The expenses are mainly divided by functional area such as: Manufacturing Administration Sales Research and Development We can activate Cost of Sales Accounting by the following menu path: SAP Customizing IMG -----> Financial Accounting ( New ) ---- -> Financial Accounting Basic Settings (New) -----> Ledgers --->Ledger-----> Activate Cost of Sales Accounting Offsetting Account Report ECC 5.0 Offsetting account report for vendors in ECC 5.0 is possible after implementing the OSS Note 1034354.

SAP Upgrade – Key points to remember

Purpose of this post - to highlight why customers across industry need SAP ERP upgrades & how effectively these upgrade projects can be executed. This document also covers actual upgrade experience of customer XYZ Corp.

Note: Above given points covered in one link only.

SAP : Bank Guarantees Configuration

Bank Gaurantees are normally two stage transactions i.e

When you receive the Bank Gaurantee
When you receive the payment for which it was issued

The configuration for Bank Gaurantee can be done using the T Code FBKP.

You need to assign the GL accounts for the Special GL Indicator "G".In tis process you can do it for Customers or Vendors.

It is a GL Account Assignment to the Reconcilliation Account that is being assined the Customer or Vendor master.

When ever a Bank Gaurantee is received then we enter the data as Noted item.And the amount would be shown as a open item in the Bank Gaurantee GL account.

When the amount is received then in the entry screen for the amount received we also select the Special GL indicator G so that the Open Item gets cleared.

By doing so it would be possible to arrive at the list of the Gaurantees open at any point of time.

The steps are as follows :

1.T Code FBKP for GL Account Assignment to the Reconcilliation Account
2.T.Code F-49 for entering the Bank Gaurantee received as Noted Item.
3.T Code F-28 for Gurantee received from the Customer for the sales invoice. In the first screen in the Open Item Selection segment provide "G" as the Specil GL indicator after providing the Customer No.

The the system would automatically clear the Gaurantee along with the invoice amount.

We will not receive the BG from Customer nor pay to the Vendor. as Security there will be Deposit in our bank account.
the Entry for the same will be

DR FDR with Bank for BG.( % of the BG as deposit (asset)
DR Bank Charges.( % of BG, will be expense)
CR Bank CC A/c ( CC already allot for the client)

In case of delivery fullfillment with customer or after the fixed term the entry will be

Cr FDR with Bank for BG
Cr Intrest Chages ( Income on the Deposit)
Dr Bank cc A/c.