Controlling Costs and Profits

CONTROLLING
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*If any suggestions about this book please mail to Bhagiradhap@gmail.com
INDEX CONTROLLING
BASIC OVERVIEW OF CONTROLLING...............................................................................................5
CONTROLLING.........................................................................................................................................5
CONTROLLING AREA............................................................................................................................5
COST ELEMENT........................................................................................................................................5
PROFITABILITY ANALYSIS..................................................................................................................5
OPERATING CONCERN........................................................................................................................5
INTERNAL ORDER MANAGEMENT................................................................................................7
PROFITCENTER ACCOUNTING........................................................................................................8
PERIOD ACCOUNTING.........................................................................................................................9
COST OF SALES ACCOUNTING .........................................................................................................9
FLOW OF VALUES TO PROFIT CENTER ACCOUNTING......................................................10
INTRODUCTION.........................................................................................................................................11
COSTING....................................................................................................................................................12
COSTING TECHNIQUES .....................................................................................................................12
COMPONENTS OF CONTROLLING...............................................................................................13
CONTROLLING OBJECTS...................................................................................................................20
COSTING DATA......................................................................................................................................20
COMPANY CODE RELATIONSHIP WITH CONTROLLING AREA.....................................21
CONTROLLING OBJECTS...................................................................................................................21
VERSIONS..................................................................................................................................................22
BASIC SETTINGS.........................................................................................................................................25
MAINTAIN CONTROLLING AREA..................................................................................................25
MAINTAIN NO. RANGES ....................................................................................................................26
MAINTAIN VERSION............................................................................................................................27
COST ELEMENTING ACCOUNTING..................................................................................................28
PRIMARY COST ELEMENT.................................................................................................................30
SECONDARY COST ELEMENT.........................................................................................................30
CREATION OF PRIMARY COST ELEMENT.................................................................................31
AUTOMATIC CREATION OF COST ELEMENT..........................................................................31
REPORTS FOR COST ELEMENT ACCOUNTING.......................................................................33
OBJECT CLASS..............................................................................................................................................34
PERIOD-END CLOSING ......................................................................................................................36
FUNCTIONAL AREA.............................................................................................................................37
ACTIVATE COST OF SALES ACCOUNTING................................................................................38
DIRECT COST AND INDIRECT COST............................................................................................38
ACCOUNT ASSIGNMENT LOGIC ....................................................................................................39
COST CENTER ACCOUNTING..............................................................................................................42
DEFINE COST CENTER CATEGORIES .........................................................................................44
DEFINE COST CENTER GROUP......................................................................................................46
CREATE COST CENTER ......................................................................................................................47
STATISTICAL KEY FIGURES..............................................................................................................48
ACTIVITY TYPE ......................................................................................................................................50
RESOURCES..............................................................................................................................................56

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COST CENTER PLANNING.....................................................................................................................57
COST CENTER PLANNING SCOPE.................................................................................................57
PLANNING SEQUENCE PROCESS FLOW ....................................................................................59
PLANNING LAYOUTS ..........................................................................................................................60
DISTRIBUTION KEY.............................................................................................................................63
ACTIVITY PLANNING..........................................................................................................................64
ACTIVITY INPUT PLANNING...........................................................................................................66
PLAN RECONCILIATION....................................................................................................................68
COST PLANNING ...................................................................................................................................68
ACTIVITY DEPENDENT COST PLANNING ...........................................................................68
ACTIVITY INDEPENDENT COST PLANNING ......................................................................71
ACCRUAL CALCULATION..................................................................................................................74
ALLOCATION METHOD .....................................................................................................................76
DIFFERENCE BETWEEN ALLOCATION METHODS..........................................................77
DISTRIBUTION METHOD..............................................................................................................78
INDIRECT ACTIVITY ALLOCATION.........................................................................................82
SPLITTING STRUCTURE......................................................................................................................85
COST CENTER BUDGETING.............................................................................................................88
ACTUAL DATA POSTINGS TO COST CENTER ..........................................................................89
POSTING FROM MM.........................................................................................................................89
POSTING FROM FI............................................................................................................................90
DEFINE ACTUAL INDIRECT ACTIVITY ALLOCATION..................................................100
COMMITMENT MANAGEMENT....................................................................................................102
PROFITABILITY ANALYSIS...................................................................................................................114
MAINTAIN OPERATING CONCERN............................................................................................115
VALUE FIELDS ASSIGNMENT........................................................................................................118
ASSIGN QUANTITY FIELDS ............................................................................................................118
MAINTAIN PA TRANSFER STRUCTURE FOR DIRECT POSTING.....................................119
ASSESSMENT CYCLE Of CO-PA......................................................................................................120
CREATE CO-PA REPORTS.................................................................................................................121
CREATE FORM..................................................................................................................................124
CREATE REPORT.............................................................................................................................125
COPA PLANNING FRAMEWORK ..................................................................................................126
CREATE TRANSPORT REQUEST OF CO-PA.........................................................................128
PROFIT CENTER ACCOUNTING........................................................................................................129
BASIC SETTING FOR PROFIT CENTER ......................................................................................134
DEFINE DUMMY PROFIT CENTER..............................................................................................134
DEFINE PROFIT CENTER ................................................................................................................135
DEFINE NO. RANGES FOR LOCAL DOCUMENTS.................................................................137
MAINTAIN AUTOMATIC ACCOUNT ASSIGNMENT OF REVENUE ELEMENT.........137
CHOOSE ADDITIONAL BALANCE SHEET AND P&L ACCOUNTS..................................138
TRANSFERRING SELECTED BALANCE SHEET ITEMS .......................................................139
CREATION OF TRANSPORT REQUEST OF PCA .....................................................................140
PLANNING OF PCA.............................................................................................................................144
ACTUAL DATA FLOW TO CO-PA &PCA......................................................................................146
CREATE SALES ORDER.................................................................................................................146

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OUT BOUND DELIVERY..............................................................................................................146
BILLING DOCUMENT....................................................................................................................147
GENERAL POSTING.......................................................................................................................147
EXECUTION OF ASSESSMENT CYCLE .......................................................................................148
PRODUCT COST CONTROLLING ......................................................................................................158
PRODUCTION PLANNING DATA.................................................................................................162
CREATE BILL OF MATERIAL......................................................................................................162
CREATE WORK CENTERS ...........................................................................................................163
CREATE ROUTING PROCEDURE.............................................................................................164
OVER HEAD COSTING......................................................................................................................165
DEFINE COSTING SHEET ...........................................................................................................165
COSTING SHEET..............................................................................................................................170
DEFINE COST COMPONENTS STRUCTURE........................................................................170
COSTING VARIANT: COMPONENTS.......................................................................................171
DEFINE VALUATION VARIANTS.............................................................................................172
DEFINE QUANTITY STRUCTURE CONTROL ...............................................................173
ESTIMATION OF COST WITH QUANTITY STRUCTURE.................................................174
PRICE UPDATION ...........................................................................................................................175
REPORTS FOR PRODUCTION PLANNING...........................................................................177
PRODUCT COSTING WITH ACTUAL DATA..............................................................................178
PRODUCTION BY ORDER COSTING ......................................................................................180
CONTROLLING SETTINGS..........................................................................................................182
DEFINE COSTING VARIANT......................................................................................................182
WORKING IN PROCESS SETTINGS..........................................................................................183
VARIANCE CALCULATION.........................................................................................................187
DEFINE VALUATION VARIANT FOR WIP AND SCRAP (TARGET COSTS)..............188
PRODUCT COSTING BY SALES ORDER.....................................................................................207
OUT BOUND DELIVERY..............................................................................................................218
BILLING DOCUMENT....................................................................................................................218
REPORT FOR COST OBJECT BY ORDER OF PC..................................................................221
INTERNAL ORDER ACCOUNTING...................................................................................................223
INTERNAL ORDER..............................................................................................................................225
MAINTAIN INTERNAL ORDER TYPE.....................................................................................225
MAINTAIN NO. RANGES FOR SETTLEMENT DOCUMENT..........................................226
DEFINE INTERNAL ORDER.......................................................................................................232
PLANNING THE ORDER...................................................................................................................232
BUDGETING TO ORDERS................................................................................................................233
ACTUAL POSTING to INTERNAL ORDERS ...............................................................................233
GOODS ISSUED TO INTERNAL ORDER................................................................................233
GENERAL POSTING.......................................................................................................................234
SALES INVOICE POSTING...........................................................................................................235
SETTLEMENT OF OH INTERNAL ORDER................................................................................235
OVER HEAD COSTING......................................................................................................................236
DEFINE COSTING SHEET ...........................................................................................................236
DEFINE % OVER HEAD RATES ................................................................................................237
DEFINE CREDITS............................................................................................................................237

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COSTING SHEET..............................................................................................................................238
ASSIGN COSTING SHEET TO ORDER....................................................................................240
OVERHEAD CALCULATION.......................................................................................................241
ASSET UNDER CONTRUCTION CAPITALIZATION (LINE ITEM SETTLEMENT).....247
BUDGETING TO ORDERS...........................................................................................................249
ENTER COMMITMENT ITEMS...................................................................................................249
ACQUISITION OF ASSET..............................................................................................................250
CAPITALIZATION OF ASSET UNDER CONSTRUCTION ................................................252
SETTLEMENT OF ASSET UNDER CONSTRUCTION INVESTMENT MEASURE....253
INTERNAL ORDER..............................................................................................................................253
MAINTAIN INTERNAL ORDER TYPE.....................................................................................253
OKOC DEFINE TOLERANCE LIMITS FOR AVAILABILITY CONTROL ....................254
BUDGETING TO ORDERS...........................................................................................................255
ENTER COMMITMENT ITEMS...................................................................................................255
F-02 POST INVESTMENT EXPENSES TO INTERNAL ORDER ......................................256
AS02 FOR MAINTENANCE OF USEFUL LIFE.......................................................................259
TRANSACTION CODES..........................................................................................................................264

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BASIC OVERVIEW OF CONTROLLING
CONTROLLING
Controlling, we are using to prepare “INTERNAL REPORTS”, this internal reports.
Information will be helpful for management to take managerial decision in critical
condition. With controlling we can monitor, what are the cost incurring within the
organization. So, that easily identifies the unnecessary expenditure incurring in the
Organization.
CONTROLLING AREA
It is used to monitor cost (Controlling) report. Is the control cost unit within the CO.
module. It is representative of a contained Cost Accounting.
Ex: where Costs & Revenues can be managed
COST ELEMENT
It is an origin of cost & revenue, which is having expenditure & income in nature that is
called Cost Element.
PROFITABILITY ANALYSIS
CO-PA is helpful to the management to provide information regarding market segments,
So, that based on this sales segment information. The Management can make decision.
Compare to PCA the profitability analysis can provide more information to the
management. It means in-depth analysis is possible in PA.
OPERATING CONCERN
The combination of “Characteristics” and “value fields” are called as operating concern.
It we want to analyze the market at a time is difficult, so that to avoid this
inconvenience that total sales market divided into small segments in parallel. So that
each and every segment wise analysis is possible, so that entire organization market
analysis is also simplify due to this “Operating Concern” .
CHARACTERISTICS
On which basis the organization wants to go for profitability analysis
Ex:- Product wise, Customer wise, Sales Employee wise, sales area, distribution
channel, sales org etc.
VALUE FIELDS
The values are associated with a characteristics are called Value fields.
Ex:- Sales Quantity, Revenue, Cost of Goods Sold etc.
VALUATION METHODS IN PROFITABILITY ANALYSIS
These are two Methods:-

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a) Account Based Method
b) Cost Based Method
S NO Account Based Cost Based
1 It Reconcile between FI & CO
2 Here we considered all Expenditure
A/c & Revenue A/c to calculate
Profitability
Here we considered all cost elements &
revenues elements to calculate
Profitability
3 Here we are not having value field
only we have “Characteristics”
Here we used both Characteristics and
value fields for Profitability Analysis.
4 Here we cannot get “ upto date
report
Here we can get upto date reports
SAP recommended to used cost based
CO-PA
Flow of Values into CO-PA
S No Module Through Closed Values
1 Sales & Marketing (SD) Billing Doc. Quantities, Revenues, Sales,
Deductions & Cost of Sales
2 CO-Product costing (CO-
PC)
Cost
Estimate
Variable Cost of goods Manufacture/
Fixed Cost of goods Manufacture
3 Finance (FI) G/L A/c
Posting
Rebates & Frights
4 CO Overhead (CO-OM) Cost Center,
Order
&Process
Sales, Admin & Marketing Cost &
Variance
5 Project System WBS
Element
Research & Development Cost (Ex.
Tooth Powder to Tooth Paste
6 CO-Production Cost
Object
Production
Order
Production Variances
7 Profitability Analysis
(CO-PA)
Additional
Cost
Accrual Discounts, Accrual Rebates

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INTERNAL ORDER MANAGEMENT
It is a tool to collect and monitor the cost incurring of a particular ‘short term job’ or
‘task’. After completion of that particular job or task, we can settle the cost of that
order into several cost object.(cost center/profit center)
OBJECT CLASS OF INTERNAL ORDER
OVERHEAD COST ORDER
INVESTMENT ORDER
ACCRUAL/DIFFERAL ORDER
COST BASED REVENUE ORDERS
OVERHEAD COST ORDER
Overhead cost orders monitor the cost of shortterm jobs &tasks. This order cost we can
settle into cost object but we cannot capitalize this expenditure.
Ex: Painting work for Building and Maintenance expenditure

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INVESTMENT ORDER
Here we can monitor the cost incurring to Asset Under Construction/Capital Work
In Progress. After finishes that particular Asset Under Construction/Capital Work
In Progress. We can settle into particular asset(capitalized of asset).
ACCRUAL/DIFFERAL ORDER
It is used to monitor the cost incurring of seasonal business(periodic). After finishing
that period we can settle into respective cost object.
Ex: Employee bonus payment
COST BASED REVENUE ORDERS
It is used to monitor the cost of particular Production Order/Maintenance Order.
TYPES OF INTERNAL ORDERS
TRUE ORDERS STATISTICAL ORDER
We can settle the time order cost to
respective cost objective
We cannot settle the statistical order to
respective cost objective
Which define the order we should not
select statistical order
Which defining if we select statistical order
check button
It is not only information and for
settlements aslo
Mainly it is used for information purpose
only
Status True value Statistical values
Cost center
Internal order(statistical)
Profit center(statistical)
Cost center
Internal order
Profit center
Cost center
Internal order
Profit center
Internal order
Cost center
Profit center
Profitability segment
Profit center
Internal order
Cost center
Profitability segment
Profit center
Internal order
Cost center
PROFITCENTER ACCOUNTING
PROFITCENTER
It is a small organizational unit, it is used to find out operating profit within the
organization because if we want to analyze the entire organization at a time is some
what difficult, so what the entire organization. We can split it into small organization
unit each and every organizational unit is called profit center.

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Profit center we can define as product wise, geographical wise and responsibility wise.
Method of calculating profit in..
 Period accounting
 Cost of sales accounting
PERIOD ACCOUNTING
We consider particular period expenditure incurred and particular period collections of
revenue then we can come out with operating profit. Here unsold quantity expenditure
also included.
COST OF SALES ACCOUNTING
Here we consider sold quantity expenditure and sold quantity revenues. So that we can
gets accrual operating profit. It means we won’t consider unsold quantity units

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FLOW OF VALUES TO PROFIT CENTER ACCOUNTING

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INTRODUCTION
Organization
Objective
Producing a
product
Providing service
An Activity
Carryout
Operational
Process
Departments
Production Dept. Service Dept.
Producti
on plan
Finance Store Purchase SalesMech
-1
Mach
-2
Costing dept
(Controlling)

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COSTING
1. It calculates the cost per unit of product/service
 Help in fixing price
 Valuating stock
 Calculating WIP
 To determine cost of Goods manufacture or sold
2. Cost analysis and cost control and management decision making
Cost information
Costing: It refers to the process and technique of ascertainment of cost of particular
thing
Thing =A product / Group of product /process/ operation /contract/ job / order/ any
objects (All Called as Cost Units)
Cost Unit = A unit for which cost is to be ascertained
COSTING TECHNIQUES
1. Classification and collection of expenditure according to cost element.
2. Allocation and apportionment of expenses/ cost to cost centers /cost unit
Cost: Any expenditure incurred (or) attributed (or) identifiable on a particular object.
Cost center: an area which cost is ascertaining in particular area.
Cost Center for
 Allocation
 Apportionment
 Adjustment
In costing:
Material cost xxxx
Process/operation cost xxxx
Overhead cost xxxx
Total XXXX

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COMPONENTS OF CONTROLLING
1. Cost and revenue element accounting (CO-OM-CEL)
2. Overhead cost controlling (CO-OM)
 Cost center accounting (CO-OM-CCA)
 Internal orders (CO-OM-OPA)
 Activity based costing (CO-OM-ABC)
3. Product cost controlling (CO-PC)
 Product cost planning
 Cost object controlling
 Actual costing /material ledger
4. Profitability management
 Profitability analysis (CO-PA)
 Profitability center accounting

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COST AND REVENUE ELEMENT ACCOUNTING
1. Cost Element
A cost element classifies the organization-valuated consumption of production
factors with in a controlling area. A cost element corresponds a cost relevant
item in the chart of accounts.
2. Revenue Element
An object t that records the value of operating sales within one controlling area.
Each revenue element corresponds to a revenue account in chart of accounts.
3. Cost element accounting
A component of controlling that collects and summarizes postings that arise
within co in a reconciliation ledger.
OVERHEAD COST CONTROLLING
1. Cost center
An organization unit within a controlling area that represents a defined location
of cost incurrence the define based on
 Financial requirement
 Allocation criteria
 Physical location
 Responsibility for cost
2. Cost center accounting
Cost center accounting let you analyze the overhead costs according to where
they were incurred within the organization.
3. Internal Orders
Internal orders are normally used to plan, collect and settle the costs of internal
jobs and tasks. Internal orders are categorized as either
 Order used only for monitoring objects in cost accounting (Such as
advertising or Trade fair orders)
 Production: Productive orders that are value added that is order can be
capitalized (Such as in-house construction of an assembly line.
4. Activity based Accounting
Activity based costing analyzed cross departmental business process. The goals
of the whole organization and the optimization of business flours are prioritized.

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PRODUCT COST CONTROLLING
Product cost controlling calculates the cost that occurs during manufacture of a product
or provision of a service. It enables you to calculate the minimum price at which a
product can be profitability marketed.
Product cost planning
Product cost planning is an area within product cost controlling. Where you can plan
cost for materials without reference to orders and set price for materials and other cost
controlling objects.
You can use production cost planning to analyze the cost of your company’s
product such as
 Manufactured materials
 Service
 Other intangible goods
Cost object controlling
Cost object controlling is an area in cost accounting that assigns the cost incurred in
production of company activities such as internally manufactured materials. To those
activities cost object controlling supports you in
 Reaching make or buy decision
 Determining price floors
 Performing complex cost analysis such as target/actual analysis
 Determining inventory values
Purpose
The cost object controlling components is designed to answer the question , the
components assigns the cost incurred in the company to the company output. The
output of a company can consist of material manufactured in house, individual orders,
or intangible goods.
The cost objects controlling components enables you to determine the cost of goods
manufactured or the cost of goods sold for the manufacturing or service output of the
company.
You can:-
1. Establish planned cost(Budgeted costs)
2. Record actual costs for the cost objects
3. Compare actual cost with target cost and with planned cost and analyze
variances
4. Determine price floors for products or individual orders.

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Actual cost /Material cost
The application component actual costing material ledger fulfills two basic objectives.
The ability to carry materials price in multiple currencies/ valuations and actual costing.
PROFITABILITY ANALYSIS (CO-PA)
Profitability Analysis (CO-PA) enables you to evaluate market segments, which can be
classified according to products, customers, orders or any combination of these, or
strategic business units, such as sales organizations or business areas, with respect to
your company's profit or contribution margin.
The aim of the system is to provide your sales, marketing, product management and
corporate planning departments with information to support internal accounting and
decision-making.
The two forms of profitability analysis in CO-PA are:
 Costing-based profitability analysis
 Account-based profitability analysis
Profitability analysis in CO-PA is based on the cost of sales accounting method
Two forms of Profitability Analysis are supported: costing-based and account-based.
 Costing-based Profitability Analysis is the form of profitability analysis that groups
costs and revenues according to value fields and costing-based valuation
approaches, both of which you can define yourself. It guarantees you access at
all times to a complete, short-term profitability report.
 Account-based Profitability Analysis is a form of profitability analysis organized in
accounts and using an account-based valuation approach. The distinguishing
characteristic of this form is its use of cost and revenue elements. It provides
you with a profitability report that is permanently reconciled with financial
accounting.
PROFITABILITY SEGMENT (CO-PA)
An object within Profitability Analysis to which costs and revenues are assigned.
A profitability segment corresponds to a market segment. You can calculate the
profitability of a profitability segment by comparing its sales revenues against its
costs.A profitability segment in an operating concern is defined by a combination of
characteristic values. Characteristics can be concepts already available in the SAP
System (customer, product, sales organization, and so on), or you can define your
own concepts (such as "order size class").

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 Example
 Profitability segment 1: Product "Prod-1132"/ Customer "100267"
 Profitability segment 2: Industry "Chemicals"/ Country "USA"/ Product group
"Laboratory instruments"
PROFIT CENTER ACCOUNTING
An organizational unit in accounting that reflects a management-oriented structure of
the organization for the purpose of internal control.
Operating results for profit centers can be analyzed using either the cost of sales
approach or the period accounting approach.
By analyzing the fixed capital as well, you can expand your profit centers for use as
investment centers.

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(PRICE) COSTING SHEET
Machine consumption *******
Labour *******
Machine ******
--------------------------
Primary cost ********
Production overhead ****
-------------------------
Works cost *********
Work in process ******
Administration cost *****
--------------------------
Cost of production **********
I.F.G. In *****
Add sold cost *****
----------------------
Cost of goods sold **********
-----------------------
Profit *****
________________
Cost of Sales **********
________________

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CONTROLLING OBJECTS
1. Cost center
2. Internal orders
3. Activity type
4. Cost objects
i. Cost element accounting
ii. Cost center accounting
iii. Activity based costing
iv. Internal orders accounting
v. Production cost controlling
vi. Profitability analysis
vii. Profit center accounting
COSTING DATA
Company code
Data
Financial accounts
Costing
dept.
Organizational
units in
controlling
Controlling Area
Company code
Business area
Plant

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COMPANY CODE RELATIONSHIP WITH CONTROLLING AREA
 Assign controlling area to company code
 One controlling area for one company code or many company code
cost accounting
 For cross company codes are maintain same chart of accounts and
same fiscal yr. but currency may be different in one controlling
area.
 Controlling area must be activate a particular fiscal yr.
CONTROLLING OBJECTS
i. Cost center
ii. Internal orders
iii. Activity type
iv. Post object
v. Sales order
vi. Commitment items
vii. Profitability segments and profit center
Set in controlling for a F.Y(Fiscal yr.)
Controlling
area
Must be
activate a
particular
fiscal yr.
Actual Data Controlling
Objects
Planning
Data
Data flowed
from
FI OVER HEAD
AADEPRECIATION
MMRAW MATERIAL
SDRECOVERY
HRPERSONAL COST
PPPRODUCTION PLAN

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NO. RANGES
Controlling document for various business transaction in controlling(Not a Year
Dependent)
VERSIONS
 Version enables you to maintain different sets of parallel data for the same
controlling area.
 Versions also provide fiscal yr dependent parameters to controlling area.

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Activity Price
Like Plan = ----------------------
Period (or) Average

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BASIC SETTINGS
MAINTAIN CONTROLLING AREA
SPROIMGCONTROLLINGGENERAL CONTROLLINGORGANIZATION
MAINTAIN CONTROLLING AREA
 Select controlling area = company code
 Specify company code
 then enter
 Company code controlling are
 Other settings
Cost center standard hierarchy:
Document type:
Enter 
Select button and then save
2. Select assignment of company codes:-
Specify company codes
Save
3. Select activate components/control indicators:
i. Fiscal year –From
ii. Activate components
 Cost center = Activate
AA activity type = (AA= Allocation activity)
 Order management= Activate
 Commitment Mgt= Activate
PBR
2. Cross- company code costs
accounts
PBRSH
SA
YES
PBR
2000
OKKP

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 Activity based costing =1 component active for parallel cost
Select:
Profit center accounting
Projects
Sales orders
Cost objects
Co. commitment management
Variance
Save
Back to menu Item 
MAINTAIN NO. RANGES
PROIMGCONTROLLINGGENERAL CONTROLLINGORGANIZATION
For copy standards
 Enter Controlling Area
 Select copy as button (F7)
 Then enter your controlling area
For Your own Creation:-
 Enter your controlling area for creating our no. ranges
 Select Button
 Go to menu: select group - insert
Text:-XXXXXXXXXXXX
No: from 1 to 10000
Enter and then save
In the dialogue box ------ choose
 Keep the cursor on coin co. position from FI then
 Go to edit menu
Select element F2
KANK
0001
PBR

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Select controlling area for your company
Go to edit menu
Select assign element group (F5)
Save.
MAINTAIN VERSION
 Select 0 version
 Select controlling area settings
 Again select 0 version
 Select setting for each fiscal year
 Select current FY. 2007 for Integrated , Copying Allow 
 Select current FY Row then detail button
 Change exchange rate type
 Select Price calculation tabs
  Purely iter. Price (purely iterative price)
 Revaluation : Own business Transition
 ECPA Procedure type = ( Overhead cost)
OKEQ
D
M

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COST ELEMENTING ACCOUNTING

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i. To maintain cost element
ii. To display summarized balance of cost element
 Reconciliation ledgers
Cost element: - is used to record the valuated consumption of resources
Describe the origin of cost
Primary cost element used to allocation their primary containing other application
components
Here the P & L GL a/c (FI) = Original cost element (CO)
Cost Element
FI OVER HEAD
AADEPRECIATION
MMRAW MATERIAL
SDREVENUES
HRPERSONAL COST
Primary cost
element
Secondary
cost Element
Internal
adjustment
purpose in CO
Data Flows
from Other
application
component

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PRIMARY COST ELEMENT
For allocation purpose we have to use primary cost element
For technical purpose system categories primary costs:
11 –Revenue
01 –Primary cost/cost reducing/revenues
03-Accrual calculation- % method
04-Accrual calculation-Debit=Actual
Ex: - Bonus. By forget the data then it will used
12-Sales deductions
Ex:- External settlement- In cost accounting
The cost related to cost object
Sometimes we also maintain monitoring capital expenditure, after
competition of cost within controlling. Internal whatever cost collects for
controlling object for a particular object we finally settlement in external
AA
90- Statistical cost element for balance.
SECONDARY COST ELEMENT
It is used for internal adjustment purpose
Internal adjustment categories:
21- Internal settlement
31-Result/project analysis
41-Overhead rates
42-Assignment Costs
43-Interanal Activity allocation
50-Project incoming order- revenues
51- Project incoming order-Other revenues
52- Project incoming order-Cost
61- Earned Value.
Note: Cost Element Categories for System defined. Usher Creation is not possible

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CREATION OF PRIMARY COST ELEMENT
Manual Creation:
AccountingControlling-Cost elementAccounting-Master DataCost element
individual processing
KA01 Create primary
 Cost element : 300000
 Valid from : 01.01.2000
Enter 
 Controlling area : PBR
 Cost element category : 11-Revenue
If you wants to maintain cost element qty details
Select Indicators Tab
Record qty
Unit measure: Save
AUTOMATIC CREATION OF COST ELEMENT
Requirements:
Edit chart of Accounts
Select your chart of accounts then double click
Here change controlling integration
Save
MAINTAIN DEFAULT SETTINGS:
SPRO-IMGCONTROLLINGCOST ELEMENT ACCOUNTINGMASTER DATA COST
ELEMENTS AUTOMATIC CREATION OF COST ELEMENTS
MAKE DEFAULT SETTINGS.
Enter your chart of Accounts –
Accounts from To Category
400010 499999 1
300001 399999 11
Save
PC
2. Automatic creation of cost element
NEW ENTRIES:
OB13
OKB2
PBR

CONTROLLING
32
CREATE BATCH INPUT SESSION
Controlling Area :
From Date : To
To Date
Session name : Bhagiratha
Execute
EXECUTE INPUT SESSION
Select your section
Process (F8)
Select display errors
Process
CREATE A GL A/C
GL a/c - :
Copy from any expense account
Change the description= Sales Deductions
If you change Basic Data Tab
Cost Element Sales deductions
Save
12
OKB3
PBR
01.01.2000 31.12.9999
SM35
FS00
426000
Edit Cost Elements

CONTROLLING
33
REPORTS FOR COST ELEMENT ACCOUNTING
Accounting ControllingCost element accountingInformation Systemsreports for
cost and revenue element accountingmaster data information
-KA23 Cost element master data reports
Select all cost Elements
Execute
You Have Reports for Cost Element Accounting

CONTROLLING
34
OBJECT CLASS
DEFINITION
The object class is used to classify controlling objects such as cost centers, orders, and cost
objects, and to display the cost flows within CO from a business perspective. The classification
is made according to the SAP R/3 function list.
STRUCTURE
The following object classes are defined by SAP:
 Overhead costs (GKOST)
 Investments (INVST)
 Production (FERTG)
 Profit and sales (ERGEB)
The assignment of the cost center, cost object, sales order, and profitability segment to
an object class is fixed by SAP, but you can assign other objects as you require.
The table below shows an overview of the objects in CO with fixed assignments, and
the objects that can be freely assigned. If you do not assign an object, then the default
setting applies.

CONTROLLING
35
The objects not assigned to an object class can be assigned in the respective master
data records. For example, in each set of master data, you can assign orders in the
general parameters to control the object class.
You assign a cost object to an object class regardless of its cost object type.
Assignments between cost object and object class is predefined according to cost object
type. The following assignments apply
Cost Object Type Object Class
01 Cost object hierarchy FERTG
02 General cost objects GKOST
03 Product group FERTG

CONTROLLING
36
Note that once you make an assignment, you cannot change it if transaction data
for an object already exists. Subsequent changes to the assignment can cause
inconsistencies in the reconciliation ledger.
PERIOD-END CLOSING
Once all postings for CO period-end closing are completed, and thus all allocations have
been made, the following situations should apply:
 Cost centers and internal orders are completely credited
 Objects in the "Investment" class are still debited with values for works under
construction
 Objects in the "Production" class display "Work in Process" (WIP)
 Objects in the "Profit" class display the operating profit.
The requirements are listed in the table below:
Use
The object class is used in the following applications:
 Cost Element Accounting
o As a characteristic in the information system for the Cost Elements: Object
Classes in Columns report.
o As selection criteria for the definition of rules for account determination

CONTROLLING
37
 Profit Center Accounting
In Profit Center Accounting, the SAP R/3 System updates the object class in the
transaction data if the corresponding posting contains the object class. You can use the
object class as a characteristic in the information system.
Object Type
Object type determines which type the posting document belongs to the following
object type maintain by the system.
Object type Object name
CTR Cost center
ORD Order
FXA Fixed Assets
GL GL Accounts
PSG Profitability segments
WBS Work breakdown structure
NTA Network analysis
NTW Network
BE Business Work
RE Real Estate object
COB Cost Object
FUNCTIONAL AREA
Functional are break down corporate expenditure into different functions in line with the
requirements of cost of sales accounting.
These functions are:
 Production
 Administration
 Sales and Distribution
 Marketing
 Research and Development.
For primary and secondary postings the functional area is derived according to fixed
rules and is included in FI or Co documents and in the totals tables of the reconciliation
ledger and profit center accounting.
OKBD

CONTROLLING
38
ACTIVATE COST OF SALES ACCOUNTING
SPRO IMG FA (NEW)FA GLOBAL SETTING(NEW) LEDGERLEDGER
ACTIVATE COST OF SALES ACCOUNTING
 Select your company code
Select Activate status
Save.
CHANGE GL ACCOUNTS TO ASSIGN FUNCTIONAL AREA: -
 Enter Exp A/c Purchase of Goods A/c
 Select Change button
 Specify functional area manufacturing
Save.
Note: Like that you can specify functional area for every P&L Accounts as per
requirements.
DIRECT COST AND INDIRECT COST
Cost incurred by the organization may be direct cost or indirect cost.
The direct cost assigns to cost object or cost center.
Indirect cost are assigned to cost center. Indirect cost also called overheads for overall
management purpose the system maintain the over head cost controlling for planning
common monitoring and analyzing.
The following components to planning cost:-
1. Cost element accounting
2. Cost center accounting
3. Activity based costing
4. Internal order accounting acting
For allocation and apportionment of overheads the system uses the above components.
0100
PBR
FS00
40100
0

CONTROLLING
39
The system maintains the following cost accounting method. For allocation of
overheads
 Assignment method
 Over head rate
 Static standard costing
 Marginal costing.
ACCOUNT ASSIGNMENT LOGIC
For external posting via GL accounts defined as a cost element . the system require an
account assignment object
For this purpose the system distinguish the controlling object as “True controlling
object” and Statistical controlling object.
True controlling Statistical Controlling
Cost center (Cost) Cost center (revenue)
Internal order(True) Internal Order(Statistical)
Project (True) Project (Statistical)
Profitability segment Profit center
Real estate object Cost element if a true a/c
assignment object already exist.
Sales order
Network
Work break down structure
Business Process
Cost object
Statistical to collect internal order only
Statistical object are used to analyzing true controlling object.
Statistical object are used for assignment for further canalization purpose of true
controlling area object in the line item.
Rules for assignment
1. You need to specify a true controlling object in each posting row

CONTROLLING
40
2. In each posting row, you can specify upto three more statistical
controlling objects as well as the true controlling object.
3. You can not assign to more than controlling object of the same type in
one posting row.
4. You can not specify the same controlling object as being true and
statistical in the same posting row.

CONTROLLING
41

CONTROLLING
42
COST CENTER ACCOUNTING
Every organization is three main centers
i. Cost center
ii. Profit center
iii. Investment center
COST CENTER
We are using this tool we can
1. Plan the cost
2. Collect the cost
3. Analyze and control the cost
In SAP system we can implement standard cost maintaining plan data to cost center.
Cost center is an area used for the assignment of cost for the purpose of analysis and
cost control.
It’s may be a functional area
Ex:- a person or group of persons fiscal year location or any other allocated units.
Cost centers are two types:
1. Production cost center
2. Service cost center
Production cost center
Production cost centers are those directly involved in carrying the activates of the
production process.
Ex: - Any operations are process machine department/section/packing and
assemble section
Service cost center
Service cost centers are those which render service to production cost center in the
process of manufacturing a product or providing a service.
Ex: Administration department, purchasing department, sales dept,
marketing dept, research and development and cost center are service

CONTROLLING
43
Utility cost centers
Ex:- light canteen , wellness center, time keeping, watch and ward, repairing and
engineering section, quality control, telephone, power etc.
After allocation of cost which is attributable or identify to that cost centers, we need to
do apportionment or distribution. If such cost center resources are utilized by other cost
center.
The resource may be allocated based on cost or based on activities performed by cost
center used.
Statistical key figures, operating rate, activity based.
The cost based allocation may be made by specifying fixed amount for each receiving
object or % or values posting to the receiving objects are resources or services utilized
(sender object or receive object).
For allocation basing on services is resources utilization. We need to maintain certain
values (Tracing factors) to receiving objects to maintain these values in R/3 system the
system defines or maintain statistical key figures.
SAP system figures represents a cost center which is used for allocation and determine
the operating rate of cost center.
To maintain or specify and classify the activities performed or produced by a cost center
on business process. The system defines activity type which are used for activity
allocation.
RESOURCE
Resources are goods or services provided to an organization to produce a business
activity.
COST CENTERS
To the cost centers we can maintain the following types of data.
1. Quantity details
2. Plan primary cost
3. Plan secondary cost
4. Plan revenues
5. Actual primary cost
6. Actual secondary cost
7. Actual revenues
8. Commitment items

CONTROLLING
44
To the control to data flow to the cost center to specify the type all activities of cost
center. The system categories the cost center with cost center categories.
DEFINE COST CENTER CATEGORIES
SPROIMGCONTROLLINGCOST CENTER ACCOUNTINGMASTER DATACOST
CENTER
DEFINE COST CENTER CATEGORIES.
i. Cost center categories
ii. If you want to hide for not allow for this like quantity , actual price,
actual consumption and actual revenue, plan price, plan secondary
cost, plan revenue, commitment upto date
iii. Functional area
Save
OKA2
XXXX

CONTROLLING
45

CONTROLLING
46
DEFINE COST CENTER GROUP
ACCOUNTING CONTROLLING MASTER DATA COST CENTER GROUP
CREATE
Enter cost center by standard hierarchy
 Enter
Select
Enter description
To create sub groups
 Keep cash on main group
 Select button or Contrl+F3
Enter 1000 corporate office
To create same level
Select Button or shift+F5
Enter Group No. Group name
1000 -Production dept,
2000-Administration
3000 – Material Management
4000- Sales and Distribution
5000- Research and Development
6000-Service / utility cost center
Save
Yes
Cost center reporting structure
Lower level
Same level
KSH1
PBRSH

CONTROLLING
47
CREATE COST CENTER
ACCOUNTINGCONTROLLING COST CENTER ACCOUNTING MASTER DATA
INDIVIDUAL PROCESSING
KS01 Create
Cost
Cent
er General Name Description
Person
Responsib
le
Departme
nt
Cost
Cente
r
Categ
ory
Stand
Hierarch
y Area
Busines
s Area
Curr
enc
y
Key
100
Managing
Directors
Managing
Directors Ravikanth Admin W 2000 PBR INR
1100 Materials Materials Sridevi
Productio
n F 1000 PBR INR
1110 Wages Wages Sridevi
Productio
n F 1000 PBR INR
1120 Direct Exp Direct Exp Sridevi
Productio
n F 1000 PBR INR
1130 Production Production Sridevi
Productio
n F 1000 PBR INR
1200
Machine
Section-1
Machine
Section-1 Sridevi
Productio
n F 1000 PBR INR
1300
Machine
Section-2
Machine
Section-2 Sridevi
Productio
n F 1000 PBR INR
1400 Assembling Assembling Sridevi
Productio
n F 1000 PBR INR
2100 Administration
Administrati
on Rambabu Admin W 2000 PBR INR
3100
Materials
Management
Materials
Manageme
nt Sravan MM M 3000 PBR INR
4100
Sales &
Distribution
Sales &
Distribution Venkat SD V 4000 PBR INR
6100
Human
Resource
Human
Recourse Chandra HR H
6000
PBR INR
6200 Stores Stores
Gangadh
ar Admin W
6000
PBR INR
6300 Welfare Welfare
Prasad
Red Admin W
6000
PBR INR
6301 Canteen Welfare
Prasad
Red Admin W
6000
PBR INR
6500 Repair & Main.
Repair &
Main. Tirupathi Mech. H
6000
PBR INR
6501 Repairing Hrs
Repair &
Main. Tirupathi Mech. H
6000
PBR INR
KS01

CONTROLLING
48
6600
Quality
Control
Quality
Control Benrjee QC H
6000
PBR INR
6700 Energy Energy Srinu Electric H 6000 PBR INR
6800 Electricity Electricity Gouse Electric H 6000 PBR INR
6900 Telephone Telephone Rambabu Admin W 6000 PBR INR
6910 Rent Rent Rambabu Admin W 6000 PBR INR
6920 Projects Projects
Bhagirad
ha Admin W
6000
PBR INR
Display cost center information
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGINFORMATION
SYSTEMREPORTS FOR COST CENTER ACCOUNTINGMASTER DATA INDEXES
COST CENTER MATER DATA REPORT
Select all Cost Centers
Execute
*If your want to Delete for Particular Period a Cost Center Go to
Try to Execute with Test run. If No Error then Deselect Test Run again Execute
Like that we can delete any time dependent master data in Controlling
STATISTICAL KEY FIGURES
DEFINITION
figure representing a cost center activity type, orders, business process, profit center,
real estate objects.
You can use them as the basis for internal allocations such as distribution and
assessment.
Ex: Telephone calls, no. of employees, material requisition.
This may be categories as one “Fixed Value” and “Total Value”.
Total Values: key figures for every current month we have to maintain values.
Fixed values: key figures the system automatically carry forward to the subsequence
month
These figures may be update manually or automatically.
KS13
KS04

CONTROLLING
49
CREATION OF STATISTICAL KEY FIGURES
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGSTATISTICAL KEY
FIGUREINDIVIDUAL PROCESSING
KK01 CREATE
Statistical
key figures
Description Unit /
measure
Category
1000 No. of employees Ea Fixed Value
2000 Telephone call Ea Total value
3000 Power in kilo wats Kw Total Value
4000 Area occupied FT2 Fixed Value
5000 Repairing hours H Total value
6000 Testing items H Fixed value
7000 Production units PC Total value
8000 Material requisition EA Total value
To link to “Logistic information system
Select
Select search information structure
Production planning processing industries> master data> process order> operations>
scheduling >
Define time units.
LIS
Continue
KK01

CONTROLLING
50
ACTIVITY TYPE
DEFINITION
Activity types classify activities produced in cost centers within a controlling area.
YRK: A unit in a controlling area that classifies activities performs in a cost center.
Ex:- Activity type in production cost centers are machine hours or finished goods.
Machine Department Activity
Calculation
Activity Type
Specify
Measures
In the
Records
For activity
unit
Activity
output
Units in
Hours,
SQM etc
Machine Activity
Labour Activity
Setup Activity
Maintenance V 10000
Rep. & Depreciation F 2000
Salary F 5000
Power V 5000
Store & Spares V 1000
Wages V 20000
43, 0000
Expenses
Machine Main
Activity Types
Mach.
Hrs:1000
Setup Hrs:50
Labour Hrs:05
F = Fixed Cost
V= Variable Cost
M.Hrs=60*220 =13200
L.Hrs =30*400= 12000
S.Hrs= 03*200 = 600
Total: 25800
M.Hrs=40*220 =8800
L.Hrs =20*400= 8000
S.Hrs= 02*200 = 400
Total: 17200
Product-A
Product-B
Working
Activity Calculation
Machine Hours = F.Hr+V.Hr/Mach. Hr.
2000+5000+10000+5000
100 100
= 70 + 150 =220
Labour Hours = F.Hr+V.Hr/Labour Hr.
20000
50
Set-Up Hours = F.Hr+V.Hr/Setup. Hr.
1000
5
=400
=200

CONTROLLING
51
Plan price indicator
1 Plan price, automatically based on activity
2 Plan price, automatically based on capacity
3 Determined manually
Actual price indicator
4 Actual price, automatically based on activity
5 Actual price, automatically based on capacity
6 Manually determined for actual allocations
Activity Type Categories for Plan and Actual Allocation
Activity Type
Categories
Description Use
1 Actual activity is entered and
allocated directly
Allocation of measurable
activities; actual quantity 
plan price
2 Actual quantities result from the
total of the activity inputs,
calculated using tracing factors on
the individual receivers
Indirect calculation of activity
quantities using receiver
tracing factors
3 Actual activities are allocated using Automatic allocation of

CONTROLLING
52
indirect activity allocation activity quantities using
receiver tracing factors
4 Activity types are not allocated This activity type can be
used only to record
quantities (no values) on the
sender cost centers
Activity Type Category for Actual Allocations
Activity Type
Categories
Description Use
5 Target=actual activity allocation Actual allocation of the
activities using
target=actual activity
allocation This activity
type category can only
be used for actual
allocations Planning can
be executed using
activity type categories
1, 2, or 3. Category 1 is
most commonly used.
 Activity type category 1: Manual entry, manual allocation
You plan activity quantities manually for activity types in this category.
You enter actual activity quantities in internal activity allocation, based on
business transactions.
Plan activities are allocated using activity input planning on the receivers. It may
be necessary to reconcile the plan sender quantities and the plan scheduled
activities.
 Activity type category 2: Indirect calculation, indirect allocation
For activity types of this category, you plan activity types on the sender cost
center.
You can calculate the plan and actual activity quantities for activity types of this
category as follows:

CONTROLLING
53
Automatically, using receiver tracing factors, which you can value with
weighting factors and are defined for each sender, or
Using a fixed quantity, which you define in the segment definition of the
indirect activity allocation (see: Indirect Activity Allocation).
The R/3 System automatically reconciles the plan and scheduled activity
quantities.
 Activity type category 3: Manual entry, indirect allocation
To enter the actual activity quantities by business transaction, access the Cost
Center Accounting menu, and choose Actual postings Sender activities (see:
Entering Sender Activities). You cannot enter receiver objects here.
Plan and actual activity quantities are allocated automatically using defined
sender/receiver relationships. The R/3 System calculates the activity quantity to
be allocated to each receiver, based on the relationship of the tracing factors to
all receivers. Manually planned or posted activity quantities are further allocated
in full to the receivers. This means that the activity types in the plan are always
reconciled following the activity allocation.
 Activity type category 4: Manual entry, no allocation
To enter the actual activity quantities by business transaction, access the Cost
Center Accounting menu, and choose Actual postings Sender activities (see:
Entering Sender Activities). You cannot enter receiver objects here.
You cannot allocate to other objects.
 Activity type category 5: Calculation and allocation through target=actual
activity allocation
You require activities of this activity type category when you carry out
target=actual activity allocation. Target=actual activity allocation is a special
from of indirect activity allocation, where the planned input of an activity is
transferred as an actual value, in accordance with the operating rate (see:
Target=Actual Activity Allocation).

CONTROLLING
54
Target=actual activity allocation is used only to allocate actual values. Therefore,
activities participating in target=actual allocation must be assigned different
activity type categories for planning and actual allocation.
Actual allocation requires activity type category 5. Planning requires activity type
categories 1, 2, or 3. Category 1 is most commonly used.
DEFINE SECONDARY COST ELEMENT
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGMASTER DATACOST
ELEMENT INDIVIDUAL PROCESSING
KA06 CREATE SECONDARY
Cost element
Valid from To
Cost
Element Description Category
Record
qty.
Unit
measure
500000 Machine Hours 43 H
501000 LABOUR HOURS 43 H
502000 SET UP HOURS 43 H
503000 REPARING HOURS 43 H
504000 TESTING HOURS 43 H
505000
POWER IN KILO
WATS
43
KW
506000 CANTEEN PER MEAL 43 EA
507000 PRODUCATION UNIT 43 PC
508000 ASSEMBLING HOURS 43 H
Save
Back to menu item 
COST ELEMENT DISPLAY
Execute
KA06
500000
01.01.2000 31.12.9999
KA23

CONTROLLING
55
CREATE ACTIVITY TYPE:
ACCOUNTIN CONTROLLING COST CENTER ACCOUNTINGMASTER
DATA>ACTIVITY TYPEINDIVIDUAL PROCESSING
KL01 Create
Sl.
No
.
Activity
type
Description Ac
tiv
ity
un
it
Cost
cent
er
cate
gory
Acti
vity
cate
gori
es
Allocation
cost
element
Plan
price
indica
tor
Actu
al
price
indic
ator
1 500000 Machine
hours
H * 1 500000
2 501000 Labour hours H * 1 501000
3 502000 Setup hours H * 1 502000
4 503000 Repairing
hours
H * 3 503000 005
5 504000 Testing hours H * 3 504000 005
6 505000 Power in
kilowatts
k
w
* 1 505000
7 506000 Canteen per
meal
Ea * 1 506000
8 507000 Production
unit
Pc * 4 507000 005
9 508000 Assembling
hours
H * 1 508000 005
*= all cost centers.
Save
Back to menu item 
PRIMARY ACTIVITY TYPE INDICATOR INFORMATION
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTING INFORMATION
SYSTEM REPORTS FOR COST CENTER ACCOUNTING MASTER DATA INDEXES 
KL13 Activity Type List
Execute
KL01
KL13

CONTROLLING
56
CREATION OF RESOURCES:
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGMASTER DATA
RESOURCES
KPR2 CREATE/CHANGE
Save
RESOURCES
DEFINITION
A resources comprised goods and service, which are supplied internally and externally
to produce business activities.
Use: you can use resources to carry out a detailed,
“Quantity based primary cost planning below the cost element level for
cost centers, orders and WBS element”.
Resource planning will replace detailed planning at a later date.
For this master data that is:
i. Cost center
ii. Activity type
iii. Statistical key figures
iv. Resources
We can maintain the following data
i. Plan data
ii. Budget data
iii. Actual data
Resources Valid From To RU Name
R1 01.04.2007 31.03.9999 H Consolidating Hours
KPR2
NEW ENTRIES

CONTROLLING
57
Planned data and budget data can be set in controlling with cost center
planning and budgeting.
COST CENTER PLANNING AND BUDGETING
Cost center planning is a short term planning forming part of overall of the
organization.
PLANNING AREA
Cost center planning is divided into the following planning areas.
1. Cost elements/activity input
i. Primary cost
ii. Secondary cost
iii. Revenue
2. Activity type planning
3. Statistical key figure planning.
COST CENTER PLANNING
COST CENTER PLANNING SCOPE
Cost center planning is divided into the following planning areas:
 Cost elements/activity input
o Primary costs
o Secondary costs
o Revenues
 Activity type planning /price planning
 Statistical key figure planning
Actual data is
updated following
components
FI OVER HEAD
AADEPRECIATION
MMRAW MATERIAL
SDRECOVERY
HRPERSONAL COST

CONTROLLING
58
The following graphic provides an overview of the different planning areas:

CONTROLLING
59
PLANNING SEQUENCE PROCESS FLOW
1. Activity type planning
2. Statistical key figures
3. Primary cost planning
4. Manual primary cost planning
5. Resource planning
6. Dependency planning
7. Revenue planning
8. Automatic primary cost planning
9. Plan distribution
10.Plan accrual calculation
11.Periodic reposting in planning
12.Secondary cost planning
13. Budget planning
14.Transferring planning data from other components
i. Depreciation and interest from FI-AA
ii. Personnel cost from HR
iii. Planned activity from PP
iv. Key figures from LIS

CONTROLLING
60
PLANNING LAYOUTS
SPROIMGCONTROLLINGGERNERAL CONTROLLINGPRODUCTION STARTUP
PREPARATIONTRANSPORT SYSTEM SETTINGTRANSPORT SETTING FOR
PLANNING
IMPORT STANDARD PLANNING LAYOUTS
Click on document
SAP offers the following standard planning layouts
Cost center accounting
Cost element/activity input planning
 1-101= cost center, cost elements, activity-dependent/independent
 1-102= cost center, activity inputs, activity dependent/independent
 1-103= cost center, costs/revenue/ consumption
 1-152= cost center cost element comparison,22quarters
 1-153= cost center, cost element planning, 2 versions.
Activity /Activity price planning
1-201= cost center, activity type/price standard
Manual actual prices
1-N01= cost center, manual actual prices, cost center.
Resource planning
1-1R1= cost center: resource planning
Statistical key figure planning
1-301= cost center, statistical key figures, standard
1-302= cost center: statistical key figures, activity –dependent.

CONTROLLING
61
USER DEFINE PLANNING LAYOUTS-ACTIVITY TYPE
REPORT PAINTER: CREATE COST CENTER: PLANNING LAYOUT FOR COST
ELEMENT
Create Cost Center : Planning layout for cost element
Planner Profile : PBR1
LEAD COLUMN
COLUMN1
SELECT ROW1CLICKCHARECTERESTICSSELECT KEY FIGURE-PLAN FIXED COSTS
IN CONTROLLING AREA
Characteristic From To
Period/year 01.2007 12.2007
Fiscal Year
Version * FROM TO
Controlling area PBR
Company code PBR
Cost Center
Cost Element
Activity Type * FROM TO
Save
MSG: Planning Layout PBR1 was saved
ATTACH TO PLANNER PROFILE
SPROCONTROLLINGCOST CENTER ACCOUNTINGPLANNINGMANUAL
PLANNINGDEFINE USERDEFINED PLANNER PROFILE
Copy from SAPEASY and rename it as PBREASY
PBREASYGENERAL ACCOUNTINGCOST CENTERS:COST ELEMENT/ACTIVITY INPUT
LAYOUTS FOR CONTROLLING
ITEM LAYOUT-PBR1
NOTE: *integrate – check it then we can see the report in excel
Controlling area PBR1
Save
KP65
KP35
PBR1

CONTROLLING
62
ASSIGN STANDARD PLANNING PROFILE TO CONTROLLING AREA
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGPLANNING
KP04-SET PLANNING PROFILE
Select planning profile
Save
SAP ALL
KP04

CONTROLLING
63
DISTRIBUTION KEY
Distribution key is a tool used to distribute annual planned values over the planning
period in accordance with certain rules.
SPROIMGCONTROLLINGCOST CENTER ACCOUNTINGPLANNINGMANUAL
PLANNING DEFINE USER
DEFINE DISTRIBUTION KEYS
Standard distribution keys used by system
Distribution key Used to
0 Used to enter manually for each period
1 Used to distribute the input value equally across all plan period
2 Used to distribute the input value(annual plan value)according to the
last distribution key used
3 Interpret the input value as a % rate and multiplies it each period by
the previous value
4 Used to distribute period value not equal to zero to the subsequent
empty period
5 Copies period values not equal to zero to the subsequent empty
period
6 Copies a given period values to subsequent period
7 Used to distribute input value(annual plan value ) among the
individual periods line with the number of calendar days per period
11 Can only be used in cost center accounting for planning activity
dependent costs or activity dependent statistical key figures
The input value (annual plan value) is distributed in line with the activity quantity
planned on the cost center.
Note
The R/3 system used only those activity quantities planning at the time of the
distribution key’s used. If you change activity quantities later or copy plan values to
another version, the R/3 system does not automatically carryout new distributions.

CONTROLLING
64
ACTIVITY PLANNING
ACTIVITY PRICE/OUTPUT
ACCOUNTING CONTROLLINGCOST CENTER ACCOUNTING PLANNING
ACTIVITY OUT PUT /PRICE
KP26- CHANGE
To change layout use next layout button..
Select layout
Version :
From period :
To period :
Fiscal year :
Cost center :
To :
Activity type :
To :
Select overview screen button(F5)
KP26
1- 201
01
12
2007
1130
6999
500000
599999
0

CONTROLLING
65
Activity type
plan
activity(hr)
capacity
(hr)
fixed
price(Rs)
Variable
(Rs)
cost center=1130 Production dept
507000-Production 100000 150000 next
cost center= Machine section-I -1200
500000-machine hrs 3600 4500 30 120
501000-Labour hrs 2100 180
502000-Set up hours 300 20 next
Cost center= Machine Section-2 1300
500000-machine hrs 3000 3600 45 150
501000-Labour hrs 2100 110
502000-Set up hours 300 20 next
Cost center= Assembling hours-1400
508000-Assembling hrs 3000 220 next
Cost center= Canteen -6300
506000-Canteen 12000 10 30 next
Cost Center= Repairing-6500
503000-Repairing hrs 1800 45 125 next
Cost center= Quality Control -6600
504000-Testing hrs 1500 50 100 next
Cost center= Energy- 6700
505000-power in kw 30000 6
Save
Back menu item 

CONTROLLING
66
ACTIVITY INPUT PLANNING
ACCOUNTING CONTROLLINGCOST CENTER ACCOUNTING PLANNING COST
AND ACTIVITY INPUTS
KP06 – CHANGE
Select layout
Version :
From period :
To period :
Fiscal year :
Cost center :
To :
Activity type :
To :
Sender cost center :
To :
Sender activity type :
To :
1- 102
01
12
2007
1130
6999
500000
599999
0
KP06
6300
6700
505000
506000

CONTROLLING
67
Receiver
activity cost
sender activity
costcenter
sender activity
type
Plan variable
consumption Next
Cost center : 1130-Production
507000-
Production Unit 6300 506000 1080
507000-
Production Unit 6700 505000 900
Next
Cost center : 1200-Machine Section-I
501000-Labour
Hours 6300 5506000 900
500000-Machine
Hours 6700 5505000 1200 Next
Cost center : 1300-Machine Section-II
501000-Labour
Hours 6700 5505000 1500
500000-Machine
Hours 6300 5506000 600
Save

CONTROLLING
68
PLAN RECONCILIATION
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGPLANNING
PLANNING AIDS
KPSI –Plan Reconciliation
Select all cost Centers
 Version :
 Period from :
 Fiscal year :
Execute (F8)
COST PLANNING
Cost planning are two types
1. Activity dependent
2. Activity independent
ACTIVITY DEPENDENT COST PLANNING
A type of manual planning in which primary cost or revenues are calculated as
the product of the activity quantity or the quantity of the statistical key figures
and a factor defined by the user.
YRK: Planning with two activities is called activity dependent cost planning in this
case cost can be split into fixed variable.
KPSI
0
01 12
2007

CONTROLLING
69
KP06 – CHANGE
Select layout
Version :
From period :
To period :
Fiscal year :
Cost center :
To :
Activity type :
To :
Cost Element :
To :
1- 101
01
12
2007
1000
6999
500000
599999
0
400000
499999

CONTROLLING
70
Activity type cost element
Plan fixed
cost
Plan variable
cost
cost center: 1130-Production
507000 Production unit 410000(Salaries) 90000 - next
cost center
1200-Machine Section-
I
500000 Machine Hours 407000(Mech. Main.) 90000
500000 Machine Hours 410000 (Salaries) 36000
501000 Labour Hours 403000(Direct Wages 180000
502000-Setup Hours 402000(Indirect Wages) 15000 next
Cost center
1300-Machine Section-
II
500000 Machine Hours 407000(Mech. Main.) 72000
500000 Machine Hours 410000 (Salaries) 45000
501000 Labour Hours 403000(Direct Wages 150000
502000-Setup Hours 402000(Indirect Wages) 16000 next
Cost center 1400-Assembly
508000 assembling 403000(Direct Wages 300000
Cost center 6300-Canteen
506000 Canteen per Meal 412000(Staff Welfare) 120000
506000 Canteen per Meal 410000 (Salaries) 27000 next
cost center: 6500-Repairs
503000 Repairing Hours 410000 (Salaries) 60000
503000 Repairing Hours 406000 (R& M) 90000 next
cost center 6600-Quality control
504000 Testing Hours 410000 (Salaries) 45000
504000 Testing Hours 427000( Testing Exp.) 75000 next
Cost center 6700-Energy
505000 Power in KW
405000(Electrical
Charges) 180000 next
Save

CONTROLLING
71
ACTIVITY INDEPENDENT COST PLANNING
Planning without reference activity is called as activity independent. cost
planning in this case the total cost are recorded as fixed cost.
KP06 – CHANGE
Select layout
Version :
From period :
To period :
Fiscal year :
Cost center :
To :
Activity type :
To :
Cost Element :
To :
Select overview screen button (F5)
 To do detailed planning select cost element 400100 raw material
consumption a/c Row
 Select menu bar Edit  detailed planning change/display
 You enter every raw material details as below
1- 101
01
12
2007
1000
6999
0
400000
499999
KP06

CONTROLLING
72
Category Resources Plant Qty
M (Material) Raw Material1 PBR 5000
M Raw Material2 PBR 5000
M Raw Material3 PBR 5000
 When you press enter key than automatically take raw material price from MM
Save Back 
Cost element Plan fixed
cost
Cost Center : 1100-Material
400100 Raw Material Consumption
above values
will display here
Cost Center :1110-Wages
402000 (Indirect Wages) 100000
Cost Center: 1200-Machine Section-I
404000 9000
Cost Center: 2100-Administration
410000 (Salaries) 300000
Cost center: 3100-Purchase
410000 (Salaries) 200000
Cost center : 4100-Sales Dept
410000 (Salaries) 220000
420000 (Sales Exp.) 100000
421000 (Marketing Exp.) 90000
422000 (freight and carriage) 60000
423000 (Advertisement) 150000
Cost center: 6100-Personnel Dept
410000 (Salaries) 120000
Next Cost center : 6200-Stores
410000 (Salaries) 90000
Cost Center :6800-Electricity
405000-Eelectric Exp. 30000
Cost Center : 6900 Telephone
413000- Telephone Charges 60000
Cost Center : 6910-Rent
414000-Rent 60000
Save Back menu item 

CONTROLLING
73
REPORTS
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGINFORMATION
SYSTEMREPORTS FOR COST CENTER ACCOUNTINGPLAN ACTUAL
CONSUMPTION
S_ALR_87013611-Cost center actual/plan variable
Controlling area :
From period :
To period :
Fiscal year :
Plan version :
Cost center group :
Execute (F8)
Note: - it’s called as primary cost planning and also manual planning.
S_ALR_87013611
01
12
2007
0
PBR
PBRSH

CONTROLLING
74
ACCRUAL CALCULATION
DEFINE COST ELEMENT:
 Select bonus G/L Accounts :
 Select Button :
 Cost element category :
Save
DEFINE COST CENTER
Cost
Center
General
Name
Descriptio
n
Person
Responsible
Depart
ment
Cost
Center
Catego
ry
Stand
Hierarch
y Area
Busine
ss
Area
Cur
ren
cy
Key
BONUS
CR Bonus Cr Bonus Cr Bhagiradha HR Service 6000 PBR INR
Save
DEFINE OVER HEAD STRUCTURE
SPROIMGCONTROLLINGCOST CENTER ACCOUNTINGPLANNINGPLANNING
AIDSACCRUAL CALCULATION PERCENTAGE METHOD
MAINTAIN OVERHEAD STRUCTURE
Over head : PBR
Description : Bonus overhead structure
Row Base O/h rate From To Credit
10 I-B2
20 A-z2 10 E12
 To specify base cost element double click on base column then select YES
button
Save
From Cost Element To cost Element
FS00
411000
Edit Cost Element
3
KS01
KSAZ
NEW ENTRIES

CONTROLLING
75
410000 salaries -
403000 wages -
Save
 To specify over head rate double click on over head rate column.
Valid from valid to plan over head actual overhead
001.2007 012.2007 10% 10%
Save
 To specify credit cost center double click on credit column
Business area valid to Cost element Cost center
PBR 012.2007 411000-bonus a/c Bonus cr
Save
 Select (F5) button for assign to controlling area
 Plan Accrual controlling area
 Continue
Valid from valid to over head structure
001.2007 12.2007 PBR
Save
ACCRUAL CALCULATION EXECUTION
Change Assignment
PBR
KSA8

CONTROLLING
76
ACCOUNTINGCONTROLLINGCOST ELEMENT ACCOUNTING PLANNING
KSA8- ACCRUAL CALCULATION
 Select all cost centers
Version :
Period :
To period :
Fiscal yr :
Deselect Test run
Select Detail list
Execute
Select next list level button.
ALLOCATION METHOD
The system maintains the following allocation methods for distributing or allocating the
allocated cost from sender object to receiving object.
I. Cost based allocation methods
1. Periodic re-posting ---- primary
2. Distribution ---- primary
3. Assessment ----- Primary and Secondary
II. Activity based allocation
4. Indirect activity allocation
0
01
12
2007

CONTROLLING
77
DIFFERENCE BETWEEN ALLOCATION METHODS

CONTROLLING
78
DISTRIBUTION METHOD
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTING PLANNING
CURRENT SETTINGS
S_ALR_87005903-Define distribution
Cycle :
Starting date :
 Enter
Text: Plan Distribution: Primary Cost
ITERATIVE PROCESSING
This indicator controls whether iterative sender/receiver relationships are considered
when this cycle is processed. The iteration is repeated until each sender is fully credited
(a small remainder may be left over in some cases).
Select Attach Segment Botton
Segment
Name
Description
Receiver
Rule
Variable
portiontype
Sendercost
center
Sendercost
elementfrom
Sendercost
elementTo
Receivercost
centerfrom
Receivercost
centerto
Version
Receiver
Tracingfactors
1 Electricity 3.Fixed % - 6800 400000 499999 2100 6200
2100-
10%
3100-
20%
4100-
15%
6100-
30%
6200-
25%
100
2 Telephone 6900 400000 499999 1000 6999 0
SKF:
2000
3 Rent 6950 400000 499999 1000 6999 0
SKF:
4000
4
Personnel
Dept
6.plan
statistical
key
figures 6100 400000 499999 1000 6999 0
SKF:
1000
5 Stores
1.Variableportion
2.plan
cost 6200 400000 499999 1000 6999 0
400000
to
499999
Save
S_ALR_87005903
Plan00
01.04.2007

CONTROLLING
79
ENTERING STATISTICAL KEY FIGURE VALUE
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTING
PLANNINGSTATISTICAL KEY FIGURES
KP46-Change
Version :
From period :
To period :
Fiscal year :
Cost center :
To :
Statistical key figure :
To :
 Select form based
 Select overview screen F5 button
01
12
2007
1000
6999
1000
9999
0
KP46

CONTROLLING
80
statistical key figure
No.of
Employees-1000
Telephonecalls-
2000
PowerIn
Kilowatts-3000
AreaOccupied
RepairingHours-
4000
RepairingHours-
5000
TestingItem-
6000
Materials
Requisition-
8000
Cost centers
1130-production 3 900 100 1200 300
1200-Machine-1 4 60 250 200
1300-Machine-2 3 60 200 150
2100-Administration 6 1200 600 50
3100-Purchase 3 450 450 50 1200
4100-Sales 9 600 600 120 200
6100-personal Dep 2 300 300 30 100
6200-store 3 500 500 100
6300-canteen 2 150 150 75
6500-repair 3 50
6600-quality control 2 300 300 30
Save
TO DISPLAY
ALLOCATION PLAN DISTRIBUTION
ACCOUNTING CONTROLLING COST CENTER ACCOUNTING PLANNING
ALLOCATION
KSVB- DISTRIBUTION
Version :
From period : to
Fiscal year :
Select Details List
Deselect Test run
KP47
KSVB
01 12
2007
0

CONTROLLING
81
Cycle Start Date
Plan000 (Press F4) 01.04.2007
Execute (F8)
REPORT
SYSTEM REPORTS FOR COST CENTER ACCOUNTING
S_ALR_87013611-PLAN/ACTUAL COMPARISON
Controlling area :
From period :
To period :
Fiscal year :
Plan version :
Cost center group :
Execute (F8)
PLAN PRICE CALCULATION
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTING PLANNING
ALLOCATION
KSPI-PRICE CALCULATION
Select All Cost Centers
Version :
From period : to
Fiscal year :
Select Details List
Execute (F8)
S_ALR_87013611
01
12
2007
0
PBR
PBRSH
01 12
2007
0
KSPI

CONTROLLING
82
INDIRECT ACTIVITY ALLOCATION
Define assessment cycle for indirect activity allocation
ACCOUNTING CONTROLLING COST CENTER ACCOUNTING PLANNING
CURREN SETTING
S_ALR_87005471 –Indirect Activity Allocation
Cycle :
Starting date :
 Enter
Text: - Indirect activity allocation
Select button
Segment
Name
Description
Receiver
Rule
Variable
portiontype
Sendercost
center
Sender
Activity
Type
Receiver
costcenter
from
Receiver
costcenter
to
Version
Receiver
Tracing
factors
1 Repairing
8 plan
activity 6500 503000 1200 1300 0
Act.
Type
500000
2
Testing
cost
1.Variable
portion 6.plan
statistical key
figures 66600 504000 1000 6999 0
SKF:
6000
Save
S_ALR_8705471 / KSC7
Ind00
01.04.2007
Attach Segment

CONTROLLING
83
INDIRECT ACTIVITY ALLOCATION
ALLOCATION
KSCB-INDIRECT ACTIVITY ALLOCATION
Version :
From period : to
Fiscal year :
Select Details List
Cycle Start Date
Ind000 (Press F4) 01.04.2007
Execute (F8)
REPORT
SYSTEM REPORTS FOR COST CENTER ACCOUNTING
S_ALR_87013611-PLAN/ACTUAL COMPARISON
Controlling area :
From period :
To period :
Fiscal year :
Plan version :
Cost center group :
Execute (F8)
KSCB
01 12
2007
0
S_ALR_87013611
01
12
2007
0
PBR
PBRSH

CONTROLLING
84
PLANNING REPORTOVERVIEW
SYSTEMREPORTS FOR COST CENTER ACCOUNTINGPLANNING REPORT
KSBL-COST CENTER: PLANNING OVERVIEW.
Cost center
Fiscal yr
Period t to
Execute (F8)
Back to Menu Item 
1200
2007
01 12
KSBL

CONTROLLING
85
SPLITTING STRUCTURE
PLANNING ALLOCATION SPLITTING
PLANNINGALLOCATION
KSS4-SPLITTING
Cost center
Version
Fiscal yr
Period t to
Execute (F8)
 Keep the curser on 1200 cost center
 Select cost element
Note: - Now System Show Equal Splitting Cost where we have multi activities in one
cost center that purpose now we create “Splitting Structure”.
DEFINE SPLITTING RULES
SPROIMGCONTROLLINGCOST CENTER ACCOUNTING
PLANNINGALLOCATIONACTIVITY ALLOCATIONSPLITTING
DEFINE SPLITTING STRUCTURE
Select Splitting Rules
Rule Text Splitting Method
Y1 Indirect Wages 12 Activity quantity
Y2 Power 21 Equivalence no. planning
Y3 Salaries 12 Activity quantity
Y4 Bonus 12 Activity quantity
Y5 Canteen 12 Activity quantity
Y6 Medical 12 Activity quantity
Y7 Telephone 12 Activity quantity
Y8 Rent 12 Activity quantity
Y9 Repairs 21 Equivalence no. planning
Save
OKES
KSS4
2007
01 12
1200 1300
0

CONTROLLING
86
Select Rule :
 Select
Version :
Like that for every rule specify the version as
Save
Select :
Structure Text
Y0 Splitting Structure : PBR
Save
 elect your splitting structure
 Select assignment
Assignments Text Rule Text
Y1 Indirect Wages Y1 Indirect Wages
Y2 Power Y2 Power
Y3 Salaries Y3 Salaries
Y4 Bonus Y4 Bonus
Y5 Canteen Y5 Canteen
Y6 Medical Y6 Medical
Y7 Telephone Y7 Telephone
Y8 Rent Y8 Rent
Y9 Repairs Y9 Repairs
Save
Y1
Selection for Rules
Splitting Structure
0
0

CONTROLLING
87
Select Assignment Y1 Row
Select
Select Rule New entries Cost element Activity type
From To
Y1  404000(Ind. Wages) 500000
Y2  405000 (Power) 500000
Y3  410000 (Salaries) 500000 502000
Y4  411000 (Bonus) 500000 502000
Y5  401200 (Welfare) 500000 502000
Y6  401500(Medical exp) 500000 502000
Y7  401300(Telephone) 500000 502000
Y8  401400(Rent) 500000 502000
Y9  506000(Repairs) 500000
Save
Back to menu
ASSIGN SPLITTING STRUCTURE TO COST CENTER
SPROIMGCONROLLINGCOST CENTER ACCOUNTING PLANNING
ALLOCATION ACTIVITY ALLOCATIONSPLITTING
ASSIGN SPLITTING STRUCTURE TO COST CENTER
Cost center :
Version :
Fiscal yr :
Period : to to
Select Change button
Select your cost center (where have multi activities)
Keep curser on splitting structure
Go to menu item Edit > Assign (Shift+F6)
Note: Create new Customizing request then press enter
Save
Selection for assignment
2007
01 12
1200 1300
0
OKEW

CONTROLLING
88
Execute splitting structure
PLANNINGALLOCATION
KSS4-SPLITTING
Cost center to
Version
Fiscal yr
Period t to
Select detail list
Execute (F8)
 Keep the curser on 1200 cost center Select cost element
EXECUTE PLAN PRICE CALCULATION
ALLOCATION
KSPI-PRICE CALCULATION
Select all cost centers
Version :
Period : to
Fiscal yr
Select detail list
Execute (F8)
COST CENTER BUDGETING
SPROIMGCONTROLLINGCOST CENTER ACCOUNTINGBUDGET MANAGEMENT
KSS4
2007
01 12
1200 1300
0
2007
0
01 12
KSPI

CONTROLLING
89
DEFINE BUDGET PLANNING PROFILE
Profile
Text
Distribution key
Annual values
Period values
SAVE
COST CENTER BUDGETING
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGPLANNING COST
CENTER BUDGET
KPZ2 – CHANGE
 Profile
 cost center group
 Press Enter Key
 Specify your budget allotted amount for each cost centers as you want
 For revaluating the budget
 Select cost center
Go to menu item Edit Revaluate
If you want to increase/reduce on base of %/particular (or) amount
For increase : %
For decrease : %
Save
TO DISPLAY
ACTUAL DATA POSTINGS TO COST CENTER
POSTING FROM MM
GOODS ISSUE TO COST CENTER
10
-10
KPZ2
KPZ3
MB1C
PBR
PBR BUDGET PROFILE
1
PBR
PBRSH

CONTROLLING
90
LOGISTICSMATERIAL MANAGEMENTINVENTORY MANAGEMENT GOODS
MOVEMENT
MB1C-GOODS ISSUE
Movement type :
Plant :
Storage location :
Press  Enter Key
Cost center : (Material)
Material Qty
Raw material-I 10
Raw material-II 10
Raw material-III 10
Save
MATERIAL SCRAPING POSTING (ACCOUNTING/WITHDRAWER)
Movement type :
Plant :
Storage location :
Press  Enter Key
Cost center : (Material)
Material Qty
Raw material-I 02
Raw material-II 02
Raw material-III 02
Save
 See accounting/controlling document MB02 or men documentchange
POSTING FROM FI
201
PBR
PBR
1100
MB1C
541
PBR
PBR
1100
F-02
03.03.2007 INR

CONTROLLING
91
Document Date: , Company Code: Currency:
Postin
g keys
Account Amount Cost
center
Postin
g Keys
Account Amount Cost
center
40 401000 10000 1130 40 413000 7000 6900
40 401000 60000 1200 40 414000 5000 6910
40 401000 7000 1300 40 420000 5000 4100
40 401000 8000 2100 40 421000 6000 4100
40 401000 7500 3100 40 422000 6500 4100
40 401000 10000 4100 50 210000 *
40 401000 5000 6100
40 401000 6000 6200
40 401000 5000 6300
40 401000 4000 6500
40 401000 6000 6600
40 403000 1000 1110
40 403000 12000 1200
40 403000 8000 1300
40 403000 10000 1400
40 405000 15000 6700
40 406000 7500 1200
40 406000 7000 6500
40 407000 9000 1300
40 412000 12000 6300
Simulate and Post
FOR ANY ADJUSTMENT OR WRONG ENTRY CORRECTION
MANUAL REPOSTING OF COST
PBR
KB11N

CONTROLLING
92
ACCOUNTINGCONTROLLINGCOST ELEMENT ACCOUNTINGACTUAL
POSTINGMANUAL REPOSTING OF COST
KB11N- MANUAL
Cost center Cost element Amount Receive cost center
1200 406000 4000 6500
Press Enter Key
Simulate and Post
1. REPOST LINE ITEMS
1. Select document
2. Company code
Execute (F8)
 Change cost center amount which you want to split
 Press Enter Key
 Then Enter Cost Center
Save
ASSIGN OVERHEAD STRUCTURE TO CONTROLLING AREA
SPROIMGCONTROLLINGCOST CENTER ACCOUNTINGACTUAL POSTING
KB61
xxxxxxx
PBR
KSAZ

CONTROLLING
93
PERIOD END CLOSINGACCRUAL CALCULATIONPERCENTAGE METHOD
MAINTAIN OVER HEAD STRUCTURE
 Keep the curser on your over head structure
 Select button
 Select actual accrual
 Continue
 Select change button
Valid from Valid to Overhead structure
001.2007 012.2007 PBR
Save.
EXECUTION ACCRUAL CALCULATION
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGPERIOD END
CLOSINGSINGLE FUNCTION
KSA3-ACCRUAL CALCULATION
Cost Center Group :
Select All Cost Centers
Period :
 Select detail list
Execute (F8)
Next Button
DIRECT ACTIVITY ALLOCATION
Assignment
PBRSH
KSA3
7
KB21N

CONTROLLING
94
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINACTUAL POSTING
ACTIVITY ALLOCATION
KB21N –ENTER
Cost
center
Activity
type
Receiver
cost enter
Total
quantity
1200 500000 1120 100
1200 501000 1120 90
1200 502000 1120 3
1300 500000 1120 40
1300 501000 1120 90
1300 502000 1120 04
1400 508000 1120 120
6300 506000 1130 100
6300 506000 1120 60
6300 506000 1300 60
6700 505000 1200 100
6700 505000 1300 120
Save
MANUALLY ENTER ACTIVITY:-
SENDER ACTIVITY
KB51N - Enter
Sender cost center Activity type Qty
6500 503000 40
6600 504000 70
1300 507000 9000
Save
ACTUAL PRICE
KB51N

CONTROLLING
95
ACTUAL PRICE
KBK6-ENTER
Select layout
Version :
From period :
To period :
Fiscal year :
Cost center :
To :
Activity type :
To :
Select overview screen button (F5)
Activity type Fixed cost Variable cost
Cost center:1200-Machine-I
500000 45 45
501000 15 115
502000 05 50 Next
Cost Center-1300-Machine-II
500000 46 50
501000 10 92
502000 5 55 Next
Cost center:1400-Assembling Section
508000 120
Save
ENTERING ACTUAL STATISTICAL KEY FIGURES
KBK6
1- N01
06
06
2007
1200
1400
500000
599999
0
KB31N

CONTROLLING
96
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGACTUAL
POSTINGSTATISTICAL KEY FIGURES
KB31N-ENTER
Cost center Statistical Key figure Qty
1130 1000- No. of employee 5
1200 -do- 4
1300 -do- 3
2100 -do- 4
3100 -do- 4
4100 -do- 4
6100 -do- 3
6200 -do- 2
6300 -do- 3
6500 -do- 2
6600 -do- 2
1130 2000- Telephone 50
2100 -do- 75
3100 -do- 60
4100 -do- 50
6100 -do- 40
6200 -do- 30
6500 -do- 40
1130 4000- Area 100
1200 -do- 90
1300 -do- 80
6500 -do- 50
1200 5000-Repairs 15
1300 -do- 12
1130 6000-Quality Control 100
3100 -do- 250
1200 8000- Material Requisition 15
1300 -do- 17
4100 -do- 20
2100 -do- 10
3100 -do- 5
6300 -do- 20
6500 -do- 40
6600 -do- 10
Save
ASSESSMENT METHOD
KA06

CONTROLLING
97
DEFINE SECONDARY COST ELEMENT
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGMASTER DATACOST
ELEMENTINDIVIDUAL PROCESSING
KA06-CREATE SECONDARY
Cost element Description categories
600000 Canteen cost 42
601000 personnel cost 42
602000 store cost 42
603000 telephone cost 42
604000 Rent cost 42
605000 Sales& Mktg 42
606000 Admi cost 42
Save
DEFINE ASSESSMENT CYCLE S_ALR_87005742 /KSU1

CONTROLLING
98
ACCOUNTINGCONTROLLINGCOST CENTER ACCOUNTINGPERIOD END
CLOSING CURRENT SETTINGS 
S_ALR_87005742 –DEFINE ASSESSMENT
Cycle :
Starting date :
 Enter
Text: - Actual cost distribution
Select button
Segme
nt
Descriptio
n
Assessme
nt cost
element
Repair
rule
Varia
ble
portio
n
type
Sende
r cost
center
Sender
cost
elemen
t
Receiv
er cost
center
Receiver
tracing
factor
1 Telephon
e cost
603000 6900 40000
0 to
49999
9
1000
to
6999
2000
2 Rent 604000 6910 -do- -do- 4000
3 Personnel
cost
601000 6100 -do- -do- 1000
4 Store cost 602000
1.Variableportion
5.Actualstatistical
figures
6200 -do- -do- 8000
Save
Acc00
01.04.2007
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