Posting Example for Cost of Sales Accounting: Repetitive Manufacturing in fico

Purpose

This process is part of a sequence of processes that show cost of sales reporting for the profit and loss statement using the special purpose ledger. The processes for repetitive manufacturing and their effect on the profit and loss statement are demonstrated. The other processes deal with the following topics:

• In the process
Posting Example for Cost of Sales Accounting: Sales Order Processing, you sell the product that you manufacture in this process.
• For other examples, see the process
Posting Example for Cost of Sales Accounting: Other Financial and Controlling Examples

In this production process, you manufacture a product (a PC component) in repetitive manufacturing. First of all, you analyze the master data of the product cost controller. This forms the basis for updating the costs. You then produce the production line memory chips that you report at various reporting points. You analyze the costs on the product cost controller. Due to a production error, you have to scrap some of the components. The finished products are then transferred to stock. You calculate the overhead costs, the work in process (WIP), and the variances.

The following diagram reflects the procedures in this process:

Special Notes

• If several demonstrations are being run simultaneously, your example could become confusing, since several users will be posting to one run schedule header. If you do not want to be affected by other users while you are carrying out this example, you have the following options:

- Select a run schedule header with a different date.

- Create new materials.

- Execute this example in a client where you are the only active user.

• This is a complex process. In order to ensure that it is carried out successfully, you must follow the steps exactly.
• The values used in this process are valid for fiscal year 2000. If your activities, materials, and cost centers in the future are no longer identical to those for the year 2000, the values described will be different when you execute this process. The content of the process however will remain the same.

For more information about this process, see .

Process Flow

You can find the data for this process under .

Generating the Initial Data for the Process

Displaying Material Master Data

Displaying Bills of Material

Displaying Routings

Displaying Product Cost Collectors

Preliminary Costing of Product Cost Collectors

Backflushing for the First Reporting Point

Displaying Goods Issue Documents

Creating the Profit and Loss Statement Using Cost of Sales Accounting (I)

Analyzing Costs for the Product Cost Collector

Entering Scrap for Reporting Point 2

Displaying Material Documents

Creating the Profit and Loss Statement Using Cost of Sales Accounting (II)

Backflushing for the Second Reporting Point

Displaying Material Documents (II)

Creating the Profit and Loss Statement Using Cost of Sales Accounting (III)

Calculating Overheads

Determining WIP

Determining Variances

Settling the Product Cost Controller

Creating the Profit and Loss Statement Using Cost of Sales Accounting (IV)