Process: SBS-P-DRTR-02-003 Product Costing



Responsibility area: SBS-P-DRTR-02-004 Internal Control 



Risk

Wrong fixed cost absorption in inventory, plant costing model do not comply with group rules  

Objective

Service Unit Management accounting control plant costing model yearly update

Process description

Costing model is the document which explains the way fixed costs and depreciations are allocated to product costing in order to determine the cost of sales and inventory valuation. FRA are in charge of preparing the costing model based on the budget using the respective template of WP1 or provided by SU MAC (e.g. extract of the cycle structure for PF1). FRA asks for the validation of the GCCO

Control description

Service Unit Management accounting reviews through a checklist, costing models prepared by each Finance responsible assigned (FRA) of his/her zone and the respective update in SAP done by Service Unit Management accounting. SU MAC is making sure that costing model has been reviewed and validated by the GCCO for each plant in the scope of internal control


Scope
WP1 & PF1
Frequency

Due date : January

Control owner

Service Unit Management accounting - Costing user by region

References

 


Control evidences

IAC 01.01 Validation of costing model by RCOM.xlsx

  • Checklist
  • Costing model - Provided by FRA
  • Validation from GCCO - Provided by FRA


OP.104  << >> OP.013 & OP.028


 

 


  Guideline  




   


   


   


 I am informed once the standard rates are calculated in the system  


   


 I inform the requester that the standard rates are in the system  


   




Use transaction ZWFAR600 to extract the cycles for the year that is ending.

Choose the following variant "COSTING MODEL"

Updating the cycles and start date


Cycle should be completed like this:

  • FO01CCCC*: for COPA cycles
  • CHEFCCCC*: for Assessment cycles

Start date, to be completed with the full year that is just ending

And now, transaction can be executed to get the following view



Below see the details of this report:

 


When transction ZWFAR600 is executed and you have the list of all cycles, it is time to extract to excel.

1) Go to List → Export → Spreadsheet

This excel document will be the COSTING MODEL of your company.


1) Send through Freshdesk the COSTING MODEL extracted in previous step to the FRA/Controller to be used in the review of the cycles for the new year


After the review, I receive from FRA the cycle changes for the new year.

  • With the changes highlighted in the COSTING MODEL
  • Or, changes detailed in the freshdesk


Depending on the type of cycle, I use KSU2, KEU2, KSV2 

 


 I inform the requester that the standard rates are in the system