Tag Archives: sap fico certification training

Attend a Live WEBINAR about SAP FICO Training on Apr 18, 2016 @7:00 p.m. CST

SAP FICO Training

Time : Wednesday May 18th, 2016 @ 7:00 pm CST

You are most welcome to join our upcoming batch, details of the same are as follows:

Attend a Live Demo Session Sign up for SAP FICO Webinar
Batch Start Date : May 23, 2016 @ 07:00 p.m. CST
For More Information
SAP FICO Course Details
Class Schedule : Mon-Wed-Fri @ 07:00 p.m. CST, 3 hrs each session 

Contact : Kavya @ 515-978-9042, Email : [email protected]

Demo Session by Trainer Sumit

Attend a Live WEBINAR about SAP FICO Training on 18-May-16 @7:00 PM CST. Register Link  – http://goo.gl/JOXUjS

Attend a Live WEBINAR about SAP FICO Training on 08-March-2016 @7:30 PM CST ‪#‎ZaranTech‬

SAP FICO Training

Time : Tuesday March 08th, 2016 @ 7:30 pm CST

You are most welcome to join our Upcoming batch, details of the same is as follows:

Attend a Live Demo Session : Click here to Register
Batch Start Date : 11th March, 2016 @ 7:30 pm CST
For More Information
: http://goo.gl/LCuft
Class Schedule : Mon-Wed-Fri 7:30 pm CST 3 hrs each session

Contact : Kavya @ 515-978-9042, Email : [email protected]

Demo Session by Trainer Chandra

Attend a Live WEBINAR about SAP FICO Training on 08-March-16 @7:30 PM CST. Register Link  – http://goo.gl/JOXUjS

Five Steps to Understand Product Costing in SAP FICO

In controlling module, product costing is used to value the internal cost of materials and production for management accountability and accounting. Many people avoid due its complexity, as integration of high cost with other modules.

The five steps in understanding product costing in SAP FICO are:

product costing

Now let learn each step of product costing in detail.

Step #1: Cost Center Planning

Cost center planning is the elementary step in understanding product costing. The main objective of this phase is to plan total dollars and quantities in each cost center plant.


  • Company codes and plants in organizational structure are planned.
  • Master data for profit centers, cost centers, primary and secondary cost elements and activity types.

In transaction KP06, cost center dollars are scheduled by Activity type and cost element. Fixed and variable dollars can be entered. User can plan costs in production cost centers which wind up through allocations. In transaction KP26, the cost center quantities are planned by Activity type. Based on the earlier year’s actual values, activity rate can be manually entered. Planning activity quantities based on useful installed capacity accounts for interruption is the best practice.

Step #2: Activity Rate Calculation

The main aim of this phase is to estimate the rates of each activity plan in each cost center in a plant.


  • Cost Center Plans are entered: Plan costs in KP06 and Plan activity units in KP26

Once we plan our cost center dollars and quantities, it’s time to calculate the activity rates which are implemented to value internal activities to produce products. We can also use a blended approach and plan rates for few cost centers and activities and to calculate other rates based on the last activities.

Once we plan costs for all cost centers, we can avoid the next step of plan allocations. Use plan assessments and distributions to allocate costs when the planned costs acquired in overhead cost centers.

The key dissimilarity between assessments and distributions is that distribution keeps the primary cost element (Identity) of the cost. Assessments are secondary cost elements which act as a cost shipper to move costs. We can use assessments, distributions or blended approach of both. The plan assessments and distributions are created in Transactions KSV7 and KSU7 and executed in KSUB and KSVB transactions.

Once the costs are assigned, we must review the Cost center Actual/Plan/Variance report. Now, execute the cost center plan which rips cost when we have more than one activity type. The cost has to be ripped based on the activity quantity and other source. Using Transaction KSPI, activity type rates are calculated. If the cost is adverse, you can revise the cost plans and recalculate the rates.

Step #3: Quantity Structure

This step helps you to estimate the components of manufactured goods, cost of sold goods based on the BOM and Routing.


Master data is created:

  • Material Masters (including MRP, Accounting and Cost views)
  • Bill of Materials (BOM)
  • Work Centers (Cost Centers and Activity Types)
  • Routings (Product Planning) or
  • Master Recipes (Production Planning – Process Industries)
  • Production Versions
  • Product Cost Collectors (Production Planning Repetitive Manufacturing)

Quantity Structure is a key concept. It is a fundamental integration point between Finance and Logistics modules. There are several components of Quantity Structure namely:

  • In a product, a material master with a distinctive fit/form in a plant. It contains many views such as Material Resource Planning (MRP) views, accounting views and costing views. Procurement type and special procurement are the two key fields in costing. The procurement field refers to a material which is created internally, purchased or both. Whereas special procurement refers to a material which is sub-contracted, purchased from another plant.
  • Bill of Materials (BOM) is created for each internally produced material. The BOM list contains the component materials and quantities required to produce a semi-finished or finished good. Depending on the price control with standard or variable average price of the BOM components, the material cost of the product is calculated.
  • A work center identifies a machine or work area where a production process is performed. In addition to BOM, a routing is created to indicate the processes necessary to produce a material. In production planning, a routing has series of operations which also includes work centers and activity quantities.
  • A master recipe is used for batch-oriented process manufacturing. Rate routings and product cost collectors are used in repetitive manufacturing. Product cost collectors are created for each production version.

Production versions refer to a combination of a BOM and master recipe or routing required for material production.

Step #4: Costing Run

Costing run is used to cost mass volumes of materials in a particular company code. This allows user to select materials, detonate quantity structure, cost, analyse, mark and release.


  • Material Masters (MRP, Accounting and costing views)
  • Quantity Structure (BOM, Master Recipe or Routing and Production versions)
  • Condition types and production Information records
  • Configuration
  • CO Master Data

Materials are costed for the duration of the annual or monthly costing process. To execute costing runs, analyse results, mark and release costs transaction CK40N is used. This can be formed using controlling area, costing version, costing variant, company code and transfer control. Therefore, costing run can only be made for one company at a time. It has also created for a specific range of date.

The costing run as 6 steps namely:

  1. Selection
  2. Structure Explosion
  3. Costing
  4. Analysis
  5. Marking
  6. Release

After executing each step, error log has to reviewed and resolved. Execute each and every step after resolving the errors. If in case the results do not update after execution, press the refresh button.

Step #5: Actual Cost

This is determined through actual expenses, purchase price and conformed production quantities. These costs are matched to the standard costs through variance analysis to identify profitability and make decisions on management.


  • Material Masters (MRP, Costing and Accounting views)
  • Quantity Structure (Routers/Master Recipe, BOM and Production versions)
  • Configuration (WIP, Variance or settlement)
  • CO Master Data (Activity types, Actual and Primary and secondary cost elements)
  • Assessment/Distribution Cycles, Actual Statistical Key Figures

The production confirmation includes, product cost by order, actual production yield, scrap, and activity quantities. The production costs are composed on the production orders for review and settlement. In product cost by period, product cost collectors are used to calculate WIP, variances, and settlement instead of the planned orders.

In repetitive manufacturing, the quantities established based on the target cost created on the valuation variant for WIP or scrap. In discrete manufacturing, WIP is the dissimilarity between debit and credit of an order.

The variance analysis of input and output side is offered by SAP Finance training.  Finally, we must settle our orders or product cost collectors. Product Cost Collectors and orders are debited within actual costs during production.

For SAP FICO Training needs, visit:

http://www.zarantech.com/course-list/sap/finance-controlling. Call  515-978-9036 or email  [email protected]

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Attend a Live WEBINAR about SAP FICO Training on 13-December-2015 @7:30 PM CST ‪#‎ZaranTech‬

SAP FICO Training

Time : Sunday December 13th, 2015 @ 7:30 pm CST

You are most welcome to join our Upcoming batch, details of the same is as follows:

Attend a Live Demo Session : Click here to Register
Batch Start Date : 19th December, 2015 @ 7:30 pm CST
For More Information
: http://goo.gl/LCuft
Class Schedule : Sat-Sun 7:30 pm CST 3 hrs each session

Contact : Kavya @ 515-978-9042, Email : [email protected]

Demo Session by Trainer Pradeep

Attend a Live WEBINAR about SAP FICO Training on 13-December-15 @7:30 PM CST. Register Link  – http://goo.gl/JOXUjS

Attend a Live WEBINAR about SAP FICO Training on 01-October-2015 @7:30 PM CST ‪#‎ZaranTech‬

SAP FICO Training

Time : Wednesday October 01th, 2015 @ 7:30 pm CST

You are most welcome to join our Upcoming batch, details of the same is as follows:

Attend a Live Demo Session : Click here to Register
Batch Start Date : 07th August, 2015 @ 7:30 pm CST
For More Information
: http://goo.gl/LCuft
Class Schedule : Mon-Wed-Fri 7:30 pm CST 3 hrs each session

Contact : Kavya @ 515-978-9042, Email : [email protected]

Demo Session by Trainer Chandra

Attend a Live WEBINAR about SAP FICO Training on 01-October-15 @7:30 PM CST. Register Link  – http://goo.gl/JOXUjS

SAP FICO Roles and Responsibilities

SAP FICO consultant is mainly responsible for designing, building and deploying SAP-based ERP solutions; leading analysis and design in the SAP FI/CO area, often in close cooperation with the clients finance team; Conducting structured testing internally and with users; Ensuring stabilization of the solution and continuous improvements.

Responsibilities of FICO Consultant include:

  • Understanding the business requirement of the organization
  • Preparation of Blue print for implementing the project.
  • Implementation of the project.
  • Validate the reports requirements
  • Validate any changes in customize.
  • Provide training to end-user.
  • Sort out day to day queries of end users.
  • Enhancement of the SAP for end user based on requirement.


  • Attend meetings with the client.
  • Gather Information on their current business processes and prepare a document.
  • Gather information on their business requirements and prepare.
  • Data Mapping-Mapping the source data element for each data element in the target environment.
  • Gap Analysis-finding the gap between As-Is and To-Be processes.
  • Document on requirements gathered during workshops which is nothing but Business Blueprint.
  • Functional testing and Integration Testing.
  • Configure Global settings and Enterprise structure settings.
  • Configure G/L, A/P, A/R, Asset Accounting.
  • Prepare End user training Document.
  • Prepare workflow which is nothing but sequence of business processes flow to complete the project within defined scope, budget and time.
  • Production support after the product goes Live


Top 10 reasons why people are so mad for SAP Certification

SAP Certification is the most sought after certifications in the Information Technology (IT) world. In every nook and corner of the world, it has created tremendous buzz among the IT professionals. Probably, SAP Certification is one of the most criticized certifications, but at the same, it is one of the biggest dreams for number of individuals. Many people have criticized in many ways by writing blogs, articles and even books. But, nobody can rule out the craze that it has created in this fast moving IT world. SAP Certification is one of the most successful IT certifications in the recent past. Either directly or indirectly, it has given employment to millions of people across the globe. Though, there are many contenders for the top certification position from Microsoft, Cisco, Sun and Oracle, but still people go so mad for this SAP Certification. SAP Certification is undoubtedly the number one product based IT certification in the current market trend. If you see the number of people enrolling for SAP Certification across the globe is a benchmark for other certifications.

Though there are number of restrictions and hurdles kept by SAP policies for people in particular regions, still it has not lessen the interest for this SAP Certification. Personally, I am not in favor of the SAP discriminatory policies for appearing SAP Certification based on their region. Not just me, many of the professionals from APAC region are not happy with these rigid rules framed by SAP. As a global company and equal opportunity employer, SAP should have made the similar kind of rules in allowing the people for appearing the SAP Certification. Unfortunately, they have different rules for people residing in UK, USA and people in APAC region. If a person from APAC region comes to UK, USA for short term visit, then they can still escape those weird rules of implementation experience and letters from employers etc. There are people even intending to cross the border in order to write the SAP Certification (even I had to cross the border to write my SAP BW Certification. In this context, my question to SAP is, why cannot you have the same policy across the globe and what is the reason for this discrimination?

SAP should have made the same rules for any human being on this earth. If they have the knowledge, then they are going to pass, otherwise, a simple fail. This is as simple as that. But, I do not understand what is there in SAP Education policy makers mind. I see this policy is also not commercially viable option for SAP. If they make the fair rules across the globe (remove restrictions in APAC region), it would generate more than one million SAP Certification enrolments in a year in India alone. This small policy change can easily
earn SAP half a billion dollars per annum from India alone. If SAP has the “one globe” policy, then the number of enrolments from India alone will be definitely more than double the number of enrolments from the rest of the world. For me it looks, just to protect the commercial interests of some SAP Education Partners in APAC region, they have come up with these discriminatory policies. Unfortunately, these policies are being further discriminated by local SAP to decide their own rules on case to case basis and undue preference has been to the employees working with their local partners. Anyway, we can easily understand how the people are going mad for SAP Certification. Please do not think that this craze for SAP Certification is only in India. It has the same madness across the globe. I would like to point out some of the reasons for this madness. There could be million reasons, why people are doing SAP Certification, but these are my Top 10 reasons why people are getting so mad for SAP Certification.

1.  Job

This is the most primary reason that most people are enrolling for SAP Certification is with a hope that it will get them a decent job in SAP arena. There are number of precedents, where numerous people have achieved decent career in SAP based on their SAP Certification. Finally, their stories are turned out to be the most successful stories. Many of these people have achieved professional success and served number of top Global Companies. SAP Certification has helped them to move from remote areas to one of the world’s top most cities. Their friends, juniors, colleagues and others are motivated by this and they are also hoping to repeat the same success stories. Most of the people still believe that they can get a decent job in SAP arena and that job will turn their and their next generations’ fortunes. It is the reason why there are people ready to leave their jobs even with more than 20 years of domain experience and wanted to do the SAP certification in order to break into SAP world.

2.  Money

Many of the people who are enrolling for SAP Certification still believe that it is a good way of long term investment. They are hoping that this SAP Certification still able to fetch them a reasonably good amount of returns on their investment. Some of the people still believe that SAP Certification can be a Euro Million Jackpot in their lives. It may be true to a certain extent as number of consultants have seen rapid growth in their professional careers, even it has given them the more than thousand percent of growth and money. The markets are very volatile and the ever increasing demand for quality people, still some of the employers believe that SAP Certification is a good way of measuring the knowledge of the people. With this intention, they are still looking for knowledgeable SAP Certified consultants. The hope of getting good amount of money from those employers is one of the best motivator for people doing the SAP Certification.

3. Reputation

SAP Certified Consultants will have a incredible reputation by their employers of being certified. They will enjoy this special reputation from their employers, colleagues, friends and family members. They will visualize this kind of reputation in the society and still motivate themselves to a greater extent in order to become Certified Consultants. The precedents of reputation that is being enjoyed many number of people is one of the main encouraging factor in order to do the SAP Certification. Everybody would like to see themselves as successfully reputed individuals and professionals in their lives. Nobody is an exception to this rule. This is the basic and fundamental human psychology and it is one of the main encouraging factors why people would go for SAP Certification.

4. Recognition

SAP Certified consultants will enjoy a special recognition with their employer and the prospective employers. Many prospective employers still publish their jobs by stating that “SAP Certification is mandatory / value added advantage”. You will see there are number of jobs in the market with this kind of statements. These statements will drive the number of SAP job hoping aspirants to get them certified.  For those employers, SAP is a third party, which is certifying that the said individual has adequate knowledge in a particular area at that point of time. They have to believe the certification from SAP as a third party and consider that as one of the yard stick in selecting the candidates. In addition, SAP is also serving Logos, ID cards (not sure whether ID Cards are discontinued) to the individuals who have passed the SAP Certification. People still have same craze for these logos and ID cards to put on their CVs and show ID Cards to the public. These logos are still fetching the good amount of recognition from the recruiters. (These logos are just .jpg files, which can be easily used any unscrupulous people; I still wonder how SAP is taking steps to prevent this misuse). Individuals enrolling for SAP Certification are still hoping that they are being recognized by these employers.

5. Prospects

SAP Certification gives the people a special cushion in their career and opens up with many prospects. Just before certification, nobody even bothered to talk about them, but as soon as they are certified, their marketability has increased tremendously. Everybody, talks about their stupendous success. This is just like a person who received their ‘driving license’ and they are recognized to drive on the road. People still believe that one such opportunity will turn their future. They can utilize that opportunity to their advantage in professional career, by working further hard to achieve their professional goals. They believe that the SAP Certification can give them number of prospects, could be one of the intending reasons to go mad for SAP Certification.

6. Promotion

Decent number of employers has promoted the certified consultants in their organizations, particularly in the initial booming days of SAP. In those days, everybody, who has certified by SAP has reaped number benefits from their employers and used SAP Certification a spring to reach the top hierarchies at a faster rate. But, on day by day, within the market, the number of certified consultants is increased on a larger scale. However, organizations in remote areas find difficult to get good quality consultants, are still encouraging their employees to do the SAP Certification. Many of them who want to grow their career in that organization will go for the SAP Certification to their own mark with that company.

7. Self-Respect

SAP Certification is a confidence booster and it gives a lot of self-respect for them. The recognition and reputation among the people make them feel special. To visualize this feeling make they much stronger and they believe that they are not inferior to anybody. There are many ways of developing one’s self respect, but when they are being certified by reputed organization like SAP, it gives them a strong sense of responsibility and self-respect. This kind of self-respect is one of the strongest motivating reasons to enroll themselves for SAP Certification.

8. Prestige

Some people believe having BMW car is a symbol of prestige, some believe having Sony 70″ 3D LCD TV is a symbol of prestige, some believe having Nikon high end DSLR is a symbol prestige and  some believe having a posh bungalow is prestige etc. In the similar way, there are many number of people believe that having SAP Certification also gives them the similar kind of prestige in their life. If you see physically, it is just a piece of A4 size paper. But, still there are number of people believe that A4 size paper from SAP is a prestige symbol. You cannot resell unlike other luxury products, still there are people who has strong emotional bond for SAP Certification. You will still find number of parents and family members proudly say that their sons / daughters / brothers / sisters are certified by SAP. This symbol of prestige is still a stronger reason for somebody to get the invaluable A4 size paper from SAP.

9.  Prove

There may be some employers / bosses, who neglect their invaluable employees or miserably failed to treat them with respect. Sometimes, people might have worked with such unfortunate and adamant bosses, who never care about the human relations. Those employers and bosses might have used every small opportunity to de-motivate the individual to the maximum extent. In an indirect way, these types of employers or bosses are also strong motivators. The people will make it a point to prove that they are not less to anybody. In order to prove themselves something special, they would opt for SAP Certification. People may find this is a strange reason for going to be certified. But, if you observe the individual with a close human look, you will definitely find large number of such certified people.

10. Benefits

People luckily find some benevolent employers, who sponsor the employees’ education. They will take every effort, even in a most depressed economic situation, to allocate training budget and train their employees on the key skills. Some employers will reimburse the certification costs (unfortunately, I am yet to find one. You will find many people who will never be motivated if their own money is to be invested for education. If somebody is else is ready to invest for them, then they will be amazingly inspired and wonderfully motivated to get them certified. The prime reason being, mentally they never intended to miss that free deal. In their opinion, if it is a free deal, they will go and grab like an Olympic gold medal. You will find such lucky employees working with such lovely employers, gets easily motivated at a faster rate to grab the reimbursement benefits for passing the SAP Certification.

How to Become a SAP FICO Consultant?


Becoming a SAP FICO functional consultant is not a straightway process. While the remuneration of the SAP consultants is well known by its attractiveness, you should not expect earning such salary in the first few years. Very often the only reason for many to enter this field is the lucrative incomes, but they lose themselves in the sea of the SAP resources.   You should invest a lot of time and probably money before you could have chances to find a good job in this field.

In last few years consulting companies are looking for experienced applicants which could immediately enter into projects and start adding value to the team. It has pure economic sense to behave that way. The risks they face when they hire a SAP fresher are huge. They should invest a lot of money and expensive senior time before the employee starts to add value to the team or the company as whole.

This process will take at least 6 months, but after that the employee will have good opportunities to find a job with descent salary. You could imagine the risks that consulting companies face when they hire a fresher.

If you are a professional with substantial financial background you will again need almost the same training before you start adding value. After that those professionals with a domain experience (in our case those with Financials background) will be rewarded very well, but the initial period will be almost the same.

Everything that I’ve mentioned so far is to present you the true picture of the market that you are intending to enter. You will face a lot of obstacles before you’re really find the job that you dream of and most probably it will take several years. The only fuel that you will have is the passion. If you don’t have passion about providing solutions to business people and support them in their day-to-day tasks, then you will most certainly fail at some point.

If computers are not your hobby and you don’t like to play with the operating systems & software that you are familiar with, then you will struggle with the tasks that you are going to have as SAP Consultant.

I am going to create “how to” series about “How to become a SAP FICO Consultant” with intentions to cover first steps in entering into the SAP world and in particular SAP Finance and Controlling. You will most probably find a lot of resources in and outside the internet, but you will get annoyed and lose passion. They will make huge mess in your head.

Don’t make the mistake to directly enter into tutorials which will show how simple is to create Company, Company code, Create and Assign Fiscal Year and, Charts of Accounts, etc. You will be not prepared for that and again you could get annoyed and lose passion.

Before you enter into the next parts of this series you should have following skills and knowledge:

  • Financial & Management Accounting knowledge
  • Familiar with the business processes
  • Passions in providing solutions and supporting the business people
  • Configuration, researching and testing skills
  • Be a patient person

If you don’t have accountancy background it will be great advantage for you if you are able to get into accountancy job in company using SAP. It will not only familiarize you with SAP software, but more importantly you will understand and feel the end-users needs.

Attend a Live WEBINAR about SAP FICO Training on 12-August-2015 @7:30 PM CST ‪#‎ZaranTech‬

SAP FICO Training

Time : Wednesday August 12th, 2015 @ 7:30 pm CST

You are most welcome to join our Upcoming batch, details of the same is as follows:

Attend a Live Demo Session : Click here to Register
Batch Start Date : 24th August, 2015 @ 7:30 pm CST
For More Information
: http://goo.gl/LCuft
Class Schedule : Mon-Wed-Fri 7:30 pm CST 3 hrs each session

Contact : Kavya @ 515-978-9042, Email : [email protected]

Demo Video by Trainer Sagar

Attend a Live WEBINAR about SAP FICO Training on 12-August-15 @7:30 PM CST. Register Link  – http://goo.gl/JOXUjS

Attend a Live WEBINAR about SAP FICO Training on 02-June-2015 @7:30 PM CST ‪#‎ZaranTech‬

SAP FICO Training

Time : Tuesday June 2nd, 2015 @ 7:30 pm CST

You are most welcome to join our Upcoming batch, details of the same is as follows:

Attend a Live Demo Session : Click here to Register
Batch Start Date : 13th June, 2015 @ 9:00 am CST
For More Information
: http://goo.gl/LCuft
Class Schedule : Sat-Sun 9:00 am CST 3 hrs each session

Contact : Kavya @ 515-978-9042, Email : [email protected]

Demo Video by Trainer Sagar

Attend a Live WEBINAR about SAP FICO Training on 02-June-15 @7:30 PM CST. Register Link  – http://goo.gl/JOXUjS