SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA

SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA 2021 - Complete Process

4.65 (13 reviews)
Udemy
platform
English
language
SAP
category
SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA
60
students
6.5 hours
content
Sep 2022
last update
$34.99
regular price

What you will learn

Explain the concept of SAP CO: Activity Based Costing

Configuration of Activity Based Costing. Master data setup

Integrated with template allocation for Business Process

Activity Based Costing: Monthend closing

Why take this course?

Activity-Based Costing (ABC) in SAP provides a more accurate way of allocating overhead costs based on the actual activities that contribute to overhead. SAP CO-OM-ABC, especially in S/4 HANA, offers a streamlined way of handling this. Let’s break down your steps for understanding:

  1. Activate Activity-Based Costing in Controlling Area: Here you activate the ABC functionality for a specific controlling area.

  2. Maintain Business Process Standard Hierarchy: Set up a standardized hierarchy for business processes in your controlling area.

  3. Cost element creation-43 category: Cost elements of category 43 are created to capture the expenses related to activity types.

  4. Activity type-Labour -Master Data: This is the creation of labor activity types that you will use for ABC. Activity types represent the kind of work being performed.

  5. Production Cost center -Master data: Cost centers are departments or units where costs accumulate.

  6. Cost center with Activity type planning: Here you plan costs for activity types at specific cost centers.

  7. Template Allocation-BP Environment Creation: This is the setup of the environment where business processes and their associated costs can be modeled.

  8. Business Process creation -Master data: Define individual business processes.

  9. Assign Template to all Business Process: Use templates to allocate costs consistently across business processes.

  10. Business Process Group Creation: Group related business processes together.

  11. Business Process Planning-Cost Element wise: Plan costs for each business process based on specific cost elements.

  12. Business Process Planning-Activity type wise: Plan costs for business processes based on activity types.

  13. Business Process & Activity type rate calculation: Calculate rates for business processes and activity types based on your planning.

  14. Template Allocation-001 Environment: This step might be about initializing the standard allocation environment.

  15. Material Master creation: Define the materials that will be used in your processes.

  16. Bill of Material (BOM): This lists all the components/materials required for a product.

  17. Work Center: This defines where work gets done (machines, labor groups, etc.)

  18. Routing: This outlines the path that production takes, including steps and their associated costs.

  19. Production Version: Defines the specific combination of BOM and routing for production.

  20. Cost estimation & Release: Calculate estimated costs for production and release them for further processing.

  21. Production Order creation: Create a specific order to produce a certain amount of material or product.

  22. Activity Confirmation: Confirm the actual labor hours and machine hours consumed during production.

  23. Template Allocation -Execution of Business Process: Apply the template allocations to the actual business processes.

  24. FI Expenses to Direct Cost centers: Post financial accounting expenses directly to cost centers.

  25. Creation of Distribution Cycle: Cost spilt to Business Process: Define how costs will be distributed or split across different business processes.

  26. Execution of Distribution Cycle: Run the distribution cycle to allocate the costs.

  27. Actual Business Process Rate Calculation: Calculate the actual rates based on incurred costs.

  28. Revaluation of Production Order: Adjust the values of the production orders based on the actual rates.

  29. Variance Calculation: Determine differences between planned and actual costs.

  30. Settlement: Distribute any variances to appropriate accounts or objects.

In essence, SAP's ABC model in CO-OM-ABC lets you move from traditional cost center accounting, where costs are often allocated based on simplistic measures, to a more detailed view where costs are allocated based on actual business processes and activities. This gives management a more accurate view of product costs and can highlight areas for potential efficiency gains or cost reductions.

Screenshots

SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA - Screenshot_01SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA - Screenshot_02SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA - Screenshot_03SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA - Screenshot_04

Reviews

Sadik
April 2, 2023
Conceptual wise it is good session, but not given more details about different type of business processes, it is only one with Employee Activity group, is expecting more business processes to understand ABC costing. Overall it is good course

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4881898
udemy ID
9/14/2022
course created date
9/23/2022
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