Scribd Logo
Upload

Welcome to Scribd!

  • 160 views

    SAP Manufacturing Accounting: Naeem Arif, SAP Finance Architect, Jaguar Land Rover

    Uploaded by

    Manikandan Vijayan
    This document provides an overview of how Jaguar Land Rover implemented SAP Manufacturing Accounting. Key points include: 1) JLR implemented SAP to capture the cost of manufacturing individual products and sub-assemblies, provide profitability analysis, and aid decision making. 2) Core SAP modules like financial accounting, controlling, and production planning were utilized. Master data like materials, BOMs, work centers, and cost estimates are critical. 3) Product cost planning is used to calculate a standard cost of manufacture based on business rules. Variance analysis is then performed against actual costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    SAP Manufacturing Accounting: Naeem Arif, SAP Finance Architect, Jaguar Land Rover

    Uploaded by

    Manikandan Vijayan
    160 views20 pages
    This document provides an overview of how Jaguar Land Rover implemented SAP Manufacturing Accounting. Key points include: 1) JLR implemented SAP to capture the cost of manufacturing individual products and sub-assemblies, provide profitability analysis, and aid decision making. 2) Core SAP modules like financial accounting, controlling, and production planning were utilized. Master data like materials, BOMs, work centers, and cost estimates are critical. 3) Product cost planning is used to calculate a standard cost of manufacture based on business rules. Variance analysis is then performed against actual costs.

    Original Description:

    SAP PP PDF

    Original Title

    SAP PP

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an overview of how Jaguar Land Rover implemented SAP Manufacturing Accounting. Key points include: 1) JLR implemented SAP to capture the cost of manufacturing individual products and sub-assemblies, provide profitability analysis, and aid decision making. 2) Core SAP modules like financial accounting, controlling, and production planning were utilized. Master data like materials, BOMs, work centers, and cost estimates are critical. 3) Product cost planning is used to calculate a standard cost of manufacture based on business rules. Variance analysis is then performed against actual costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    160 views20 pages

    SAP Manufacturing Accounting: Naeem Arif, SAP Finance Architect, Jaguar Land Rover

    Uploaded by

    Manikandan Vijayan
    This document provides an overview of how Jaguar Land Rover implemented SAP Manufacturing Accounting. Key points include: 1) JLR implemented SAP to capture the cost of manufacturing individual products and sub-assemblies, provide profitability analysis, and aid decision making. 2) Core SAP modules like financial accounting, controlling, and production planning were utilized. Master data like materials, BOMs, work centers, and cost estimates are critical. 3) Product cost planning is used to calculate a standard cost of manufacture based on business rules. Variance analysis is then performed against actual costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    SAP Manufacturing Accounting

    Naeem Arif, SAP Finance Architect, Jaguar Land Rover


    Session Objectives

    • This session is aimed at giving an overview of how JLR


    applied and implemented SAP Manufacturing Accounting
    and share some lessons learned
    SAP at JLR
    • SAP tactical solution covering;
    – Core functions (Acctg, Purch, Sales)
    – Manufacturing
    – CRM
    – Global Trade & Distribution
    Contents
    • Introduction
    • Overview of Solution
    • What are the Key Master Data Objects
    • Product Cost Planning
    • Discrete Manufacturing vs Repetitive Manufacturing
    • Wrap-up
    Business Challenges

    I want …

    I want ….

    I want …
    Business Requirements
    • In summary;
    – Capture the Cost of Manufacturing individual products and sub-
    assemblies
    – Match costs to the activities that incur them
    – Provide Profitability indicators
    – Aid decision making from shop floor to the board room
    – Provide a Cost Recovery mechanism, with flexibility without
    losing power
    – Provide detailed variance analysis to support decision making
    – Ensure dataset is “Fit for Purpose”
    Modules
    Financial Accounting Controlling

    GL AP AR AA CCA PCA IO PS PA PC

    GL CCA IO PC

    PP
    IM
    SAP Orders
    • An Order is SAP can be setup as a Cost Collector for many different
    reasons;

    Overhead Investment Profitability Production Works


    Orders Orders Orders Orders Orders

    Real or Capitalisation Capture Capture Capture cost


    Statistical Revenue vs Production of completing
    Expense Costs an activity
    (e.g. repair,
    service, other
    activity)
    Manufacturing Terms
    Key Master Data Objects
    Material Masters
    BOM – Bill of Materials
    • From a Production Point of view, this is the list of components that
    will be consumed in order to make the material
    Work Center
    • Work Centers are PP objects for planning Production
    Activities on
    Production Overview
    Product Cost Planning
    • CO-PC Planning is the process is calculating a Standard
    Cost of Manufacture
    • The idea is to decide how much it should cost to create a
    widget
    • This is the integral part of the process where all your
    business rules kick in
    Cost Material
    Estimates Cost
    Updates

    Product Cost
    Planning

    Raw Materials Raw Materials Sub Engine Stock Transfer


    Receipt Consumed Assembly Assembly to Vehicle
    Plants

    Receipt into WIP


    Stock & Variance
    Analysis
    Solution Principles
    • Challenges exist around our local (JLR specific) and
    legal/statutory requirements
    • Standard Costing vs Actual Costing ?
    • Batch production or Mass production?
    Discrete vs Repetitive
    • Making Tins of Beans vs
    High Specification,
    serialised component
    products
    • Integration of your shop
    floor systems with the
    transaction recording
    system (SAP)
    • Fit for Purpose?
    Accounting?
    Discrete Repetitive

    • Specific Production Order • Specific product


    accounting accounting
    • Capture costs per • Capture cost per product
    run/batch • Variances / WIP per
    • Variances / WIP per Period
    Order

    • Reliant on SAP BO/BI to deliver Finance KPI reporting


    Summary
    • Developing a “state of the art” manufacturing facility is
    reliant on a “state of the art” ERP system to support it
    • Standard SAP does not roll-out of the box to meet all our
    business requirements
    • Be clear in your understanding of Discrete vs Repetitive
    and which is Fit for Purpose

    You might also like