A) Pre – Go Live activities:
1. Master data Load into Production system
Ensure all the master data is loaded into the production system.
We will broadly cover the master data which needs to be loaded and the module
- Material Master – Basic responsibility MM: All the respective views of the
- material masters the other modules responsible . Ensure that all the required views are uploaded
- GL codes – FI
- Customer Master – FI (accounting view) and SD (sales view)
- Vendor Master – FI (accounting view) and MM (purchasing view)
- Cost elements – CO
- Secondary cost elements – CO
- Profit centers – CO
- Cost center – CO
- Activity type – CO
- Bill of Material – PP
- Work Center/ Resource – PP
- Routing / Master Recipe – PP
- Purchasing Info Record – MM
- Service Master – MM
- Bank Master – FI
- Quality Info Record – QM
- Quality Inspection plan
2. Upload Cost center plan
Cost center plan must be updated through transaction code KP06 or using excel upload.
3. Execute the allocation cycles within cost center accounting
The plan allocation cycles (distribution, assessment) must be executed within the cost center accounting module. This will allocate the costs from the service cost center to the receiver cost center.
4. Update planned activity
After executing of the plan allocation cycles, the production cost centers are now ready with the planned costs. You can now calculate the activity prices through the system or manually update the planned prices by calculating it outside. The planned activity must be updated through transaction code KP26.
5. Calculate Activity prices
Calculate the activity prices using transaction code KSPI.
6. Execute product costing run
The product costing run will be executed for all semi-finished and finished materials in the system using transaction code CK40N. This should be run after all the BOM and Master recipe are uploaded.
The product cost finalization takes a long time and should begin well in advance before the go live date. Normally the product costing run has to be executed again and again (3 – 4 times) since data needs to be corrected and costs have to be compared with the existing legacy cost.
The possible errors in the product costing run are:-
- Moving average prices or planned prices are not correctly maintained in the material masters
- Incorrect quantities in the Bill of Materials, incorrect base unit quantity in the Bill of Material
- Incorrect quantities (hours, KWH etc) for activities in the Routing or Master recipe.
- Incorrect alternate unit of Measure
The product costing is calculated and made ready. The actual Mark and release will happen on after the stocks are uploaded into the system.
B) Pre – Go Live activities:
- Ensure all the customizing request are in the production system
Check that all the customizing request are gone in the system and no major requests are pending. Request relating to reports being developed can be transported as and when the reports are ready.
- Ensure all the number ranges for all the modules have been maintained in the production system
- Ensure that Operating concern has been generated
- Ensure that all the Customer Master data is loaded
- Ensure all material masters (all material types) have been loaded
- Ensure that all the Vendor Master data is loaded
C. Upload transaction data into system:
1.Upload Open purchase orders
Open purchase orders can well be uploaded into the system in advance before the cut off date if no invoices are expected.
2. Stock upload
Stock upload happens in 2 steps:-
⇒Finished goods: The standard prices are first uploaded through MR21 or through an ABAP program which also uses MR21. The stock quantities are uploaded using movement type 561 through an ABAP program which calls transaction MB1C.
⇒Raw Material, packing Material, stores and spare parts: The quantities and values are uploaded at the same time using an ABAP program which calls transaction MB1C.
The stock upload will generate the following entry in the system:-
Finished goods stock a/c Debit
Semi-Finished goods stock a/c Debit
Raw Material stock a/c Debit
Packing Material stock a/c Debit
Stores and spares a/c Debit
Data take over Credit
3. Mark and Release the cost estimate
After the stock is uploaded into the system, the standard cost estimate will be marked and released into the material master using transaction code CK40N.
4. Upload Accounts Receivable and Accounts Payable open items
The Accounts Receivable and Accounts Payable open items are uploaded through LSMW which calls transaction code F-02 GL Account posting. The profit center is captured in the data take over account. Baseline date must be captured, which will determine aging based on number of days mentioned in the payment terms.
The accounting entry for Accounts Receivable open item upload is:-
Customer a/c (not GL) Debit
Data takeover a/c Credit
The accounting entry for Accounts Payable open item upload is:-
Data takeover a/c Debit
Vendor a/c (not GL) Credit
5. Asset Master and value upload
⇒The upload of asset master and values through AS91
This upload of asset masters along with the values will not update the FI General Ledger. The FI – GL entry balance update will be passed through anothertransaction.
⇒Transfer Asset balance into profit center
Once the asset master along with the values is uploaded, the opening balance for the asset needs to be transferred to profit center.The asset balances opening balances are transferred into profit center accounting through transaction code 1KEI.
⇒Remove the GL codes for asset from 3KEH table
Remove the Asset reconciliation codes from the transaction code 3KEH. This is required because a manual FI entry will be passed in the next step, which will duplicate posting into PCA for the assets.
⇒Update the FI entry for asset through transaction OASV.
We give an example of how a GL entry passed for Fixed asset upload:-
Let us take Plant and Machinery
Plant and Machinery a/c Dr 200,000
Accumulated depreciation a/c Cr 60,000
Data takeover a/c Cr 140,000
⇒Reinstate the GL codes for asset in 3KEH
After passing the entry for asset upload update the asset reconciliation accounts in transaction code 3KEH.
6.Upload General Ledger account balances
Finally we upload the remaining General Ledger account balances other than Fixed Assets, Stock, Accounts Receivable and Accounts Payable. This is again uploaded through an LSMW program which calls transaction code F-02 GL Posting.
Let us take an example for the accounting entry passed:-
Data takeover a/c Debit 550,000 (Balancing figure)
Cash a/c Debit 10,000
Bank a/c Debit 50,000
Advances Debit 90,000
Share capital a/c Credit 100,000
Short term Loan a/c Credit 200,000
Long term loan a/c Credit 400,000
The Data takeover will become zero on upload of this entry.