Month End Closing

Are the MONTH END CLOSING processes followed properly in SAP Costing module? If no or need improvements, then this is the Right post for you. don’t miss it.
Why it is important: –
•To get the under and over absorption of conversion cost
•To monitor the capacity utilization for each of the plants and processes
•To get the actual cost of production at the order level & plant level
•To monitor the variances such as: Price variance, Quantity Variance etc.
•To get the final profitability at the Product / Brand / Customer level

Steps to carry out in SAP Costing Module : –
1.Settlement of Maintenance order (T.Code KO8G)
2.Re posting / Reclassification of expenses (T.Code KB11N or FI JV)
3.Allocation of cost from service/overhead cost center to production cost center (T.Code KSV5 or KSU5)
4.Splitting of actual cost (T.Code KSS2)
5.Actual activity type price calculations (T.Code KSII)
6.Revaluation of production orders with actual prices (T.Code CON2)
7.Actual Overhead calculations (T.Code CO43)
8.WIP Calculations (T.Code KKAX)
9.Variance Calculations (T.Code KKS1)
10.Settlement of order (T.Code CO88)
11.Marketing cost allocations to COPA (T.Code KEU5)
12.COPA Profitability report matching with Finance (T.Code KE30)

Why it is not being followed: –
Though the benefits of month end closing in SAP Costing is very high and important as well but still due to following reasons it is not being followed in most of the companies.

1.Awareness of the benefits of these processes not known
2.Configurations settings are missed as not being tested properly
3.Training is not given to the users in the current role
4.The MIS reports being prepared in Excel at high level
5.Fear of getting the unexpected result from system

Call To Action: –

If you want to streamline your month end activities of SAP CO module and want to get the immediate benefits and key reports for this then you should immediately connect with us