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  1. 1. SAP CO NOTES INDEXPARTICULARS Page No.CO Areas and Basic Settings for Controlling 3Cost Center Accounting 11Online Reconciliation Leger 23 1. Creation of GL Masters 25 2. CO Customization 27 3. FI Customization 28Cross Company Code Postings 31Maintain Overhead structure 34Statically Key Figures (SKF) 38Assessment 42Internal Orders 46Budgeting and Availability Control 60Profit Center Accounting 64Integration 76 1. Transaction Key /Process Key 77 2. Valuation Class 78 3. Assignment of accounts 89 4. MM Customization 90 5. FI Consultant job in MM 97 6. Assignment of Accounts for Automatic Postings(MM 100 to FI) 7. FI Consultant job in SD 115 8. SD Steps 9.Co-Profitability Analysis (CO-PA) 120 1. Data flow in CO-PA 120 2. Customization 122 3. SD End user area 126Report Painter 129Product Costing 132 1. Co Consultant Job (Activity based costing) 134 2. PP Consultant job 144 3. CO End User area 146 4. MM End User area 147 5. PP End user area 149Actual Costing 153 1. CO Consultant job 153 2. PP consultant area 167 3. Asset Accounting area 174New General Ledgers (ECC 6 New Features ) 179 1
  2. 2. 1. Customization 180 2. Document Splitting 188Central Excise and Sales Tax 192 1. Central Excise Customization (Purchase) 195 2. Central Excise customization (Sales) 211 3. SD End user area 217Financial Statement Version 228Asset Accounting Area 237Project Report 238 CONTROLLING (CO)This is used for internal reporting in Co organizational Hierarchy – Highest node iscontrolling area. In FI Highest node is company , Company codeCO AREAS :1. Cost Elements Accounting: To update Co records / sub modules cost elements are required.There are two types of cost elements 1. primary cost elements 2. Secondary cost Elements2. Cost Center Accounting: This is used to view department wise costs.3. Internal orders: This is used to view costs for specific task. Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle, Telephone wise expenses production order costs / Exhibition costs. Create each vehicle as n order and capture the costs Production order: Create production order as on internal order and capture the costs. Exhibition costs: Sales men salaries , Advertisement discounts to customers conveyance. Create a exhibition order4. Profit center accounting : This is used to view profitability product wise / Division wise / Location wise if business area is not used in FI5 Product Costing :This is used for valuation if inventories 2
  3. 3. Eg: Finished goods and work in process.6. Profitability analysis: This is used to view profitability for number of parameters at a time. Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales organization wise profitability this is reporting tool BASIC SETTINGS FOR CONTROLLING: Maintain controlling area FI Organization Structure CO. Organization Structure Company Controlling | | Company code | | | Business area Cost Center Scenario – 1 Company | Company code = Controlling Area | | Business area --- Cost Center (a)Controlling area at company code level, b)Business area will be assigned in cost centers.) Scenario -2 Company = Controlling Area | | Company code | | | Business area --- Cost Center (a )Controlling area at company (group) level no. of company codes will have one controlling area, b) Business area will be assigned in cost centers. 3
  4. 4. 1) When management wants to view number of company codes cost centers data at a time – It is not possible in 1st Scenario – It is possible 2nd scenario. In report it will ask only one controlling area and not multiple controlling area. 2) When management wants to view number of cost centers data of company code – Directly it is possible in 1st scenario. Also it is possible in 2nd Scenario – By creating cost center groups. It means 2nd Scenario is more flexible.MAINTAIN CONTROLLING AREA:Path : SPRO – Controlling – General controlling – Organization – Maintaincontrolling area (Tr.Code is OKKP)If we go for 1st scenario – company code should be the controlling area.If we go for 2nd scenario we can use any code for controlling area code.Double click maintain controlling area.Select new entries buttonControlling area :BILName :controlling area forBILCompany code to controlling area : Select controlling area same as company codeCurrency type : select 10 company code currency.Once we select 10 company code currency , currency field, Chart of Accounts filed andFiscal year variant filed will be updated automatically.Cost Center standard hierarchy : BILHIERSaveSelect yes button for the message system to create as a standard hierarchySelect create request buttonShort description : Co customization for BILPress enterPress enter once again to save in the request.COST CENTER STANDARD HIERARCHY:Cost center standard hierarchy : BILHIER |Cost centers Dept. A Dept.B Dept.C 4
  5. 5. At the time of cost center creation – It will ask under which hierarchy we are creating thecost centers.In the report – when we give cost center Dept.A – It gives only Dept.A date. When wegive cost center Dept.B – It gives only Dept.B date.When we give cost center hierarchy BILHIER – It gives all the cost centers data.Double click on assignment of company codes folderSelect new entries buttonGive the company code : BILSelect save button or Ctrl+SPress enter to save in your requestDouble click on a activate components / control indicators folderSelect new entries buttonFiscal year :2007Cost center : Select component activeSelect active type check boxOrder management select component active.Select profit center accounting check boxSaveIgnore the warning message press enterMAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS: 1. CO through posting from FI (Business transaction – COIN CO No rang interval for the business transaction –COIN FI Document type Co And no.ranges SA COIN | | 01 | 5
  6. 6. | 1-100000 1-00000Manual posting F-02 Automatic posting 1. Repost Co line items (Business transaction –RKU3) Option 1 Posting in FI Wages A/c Dr 100000 Dept.A Wages A/c Dr 200000 Dept.B Wages A/ Dr 300000 Dept C To bank 600000 1 FI Document 1 Co Document – COIN Note :Automatic posting is a business transaction Option 2Posting in FI Posting in COWages A/c Dr 600000 Dept common Dept A 100000 Dept.common Dept B 200000 Dept. Common Dept C 300000 To Bank 600000 Post Co line item 2 Documents 1 FI Document No FI document 1 CO Document –COIN 1 CO Document – RKU3 Transfer document wise/line item wise Total documents generated 1. FI Document 2. CO DocumentsWages A/c Dr 600000 Dept Common Dept A 300000 Dept Common Dept B 200000 Dept Common Dept C 300000Rent A/c Dr 50000 Dept A 6
  7. 7. To bank 650000 Repot CO line itemTransfer line item wiseTransfer document wise / Line item wiseReport costs ( Business transactions – RKU1)This is used when we split the cost center into number of cost centers or transfer forwrong cost center postings.No FI document will be generatedCO document only will be generatedTransfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept XDept A Dept X30/04/2008 400100 Salaries 20000030/05/2008 400100 Salaries 25000030/06/2008 400100 Salaries 275000 ---------- 400100 total 725000 400100 Salaries 20000030/04/2008 400101 wages 10000003/05/2008 400101 wages 15000030/06/2008 400101 wages 125000 ---------- Total 400101 375000 400101 wages 12500030/04/2008 400300 Rent 50000031/05/2008 400300 Rent 5000030/06/2008 400300 Rent 50000 -------- 400300 Total 150000 400300 Rent 40000Planning primary costs ( Business transaction RKP1)Planning cost center wise or no. range interval for all the types , budgeting cost centerwise for each cost element.Path: SPRO- Controlling – General controlling – Organization- Maintain numberranges for controlling document (T.Code is KANK) Controlling area : BIL 7
  8. 8. Select maintain groups button From the menu select group – Insert Text: Co doc no. range interval for BIL From number :1 To number :100000 Enter Double click on business transactions COIN RKU3 RKU1 RKP1 Select Co.No.range interval for BIL check box From the menu select Edit – Assignment element group Save Ignore the message press enter Note :Usage of Version locked authorized person only Eg; Cost AccountantMAINTAIN VERSIONS: Version are nothing but budgets Original budgets Version 0 Revised budget version 1 Re revised budget Version 2 We can compare actual with original budget, Revised budget and Re revised budget Path: SPRO – Controlling –General controlling – Organization – Maintain versions Select version 0 (Plant /actual version ) Double click on settings for each fiscal year folder Give the controlling area : BIL Enter Select new entries button Fiscal year :2008 Exchange rate type :select B (Bank selling rate) Once budgeting is completed at end user are a select version locked – So that no body can change budget figures. 8
  9. 9. Select save button or Ctrl+S Press enter to save in your request Select bank arrow Planning is made attend user area after planning’s completed we select version locked check box , no body can change planned figures. COST ELEMENT ACCOUNTING: To update CO records / sub modules cost elements are required There are 2 types of cost elements1. Primary cost element 2 Secondary cost elementsA)Primary cost elements are our general A)Secondary cost elements are other thanledger accounts general ledger accountsB) Posting to primary cost elements are B) Postings to secondary cost elements arepossiable not possible. They are used to allocations / Settlements Dept C Dept A Dept B (Service Dept) (Production Depts) Salaries 100000 Wages 200000 Power 5000 In the month end, by using secondary cost element, we allocate costs from service to production Depts.COST ELEMENT CATEGORIESPRIMARY COST ELEMENT CATEGORIES:1. Primary cost / costs redacting revenues. This used for expenditure accounts 3. Accrual / Deferral per surcharge :This is used for month end provisions only in CO11. Revenues: This is used for income accounts12. Sales Deduction: This is used for expenditure accounts like sales commission Trade discount where CO-Profitability analysis module is activated22. External settlement( Settlement from CO – FI): This is used for allocation of internal order settlement to GL Accounts / Assets. 9
  10. 10. SECONDARY COST ELEMENT CATEGORIES:21. Internal settlement (Settlement from CO to CO) This is used for allocation of internal order settlement cost to cost centers.31. Order/ Project Results analysis: This is used for work in process calculations is product costing.41. Overheads rates :This is used for calculation of raw material overhead rate / Production overhead rate in product costing .42. Assessment: This is used for allocation of primary cost element posing and secondary cost postings from one cost center to other cost centers.43. Internal Activity Allocation: This is used for calculation of activity types in production cost. Eg: Machine hours rate / labour hour rate in product costing. COST CENTER ACCOUNTINGThis is used to view department wise costs we use cost center accounting. 1. Creation of primary cost elements, we can create A) FI Area | B)CO Area |- Co Area C)Automatic creation | 2. Display cost elements created 3. Creation of filed status group by making cost center required entry field 4. Assign new filed status group in GL expenditure accounts 5. Creation of cost centers. 6. Creation of cost center groups. 7. Creation of cost element groups 8. To enter exchange rate for type M for INR to Euro 9. Posting of transaction in FI 10. To view cost center wise report. 11. To view CO documents 1. A) Creation of primary cost element at FI area Use to FS00 – GL masters creation Give the GL account number : 400100 Salaries Account Company code : BIL Form the menu select GL Account display Now select edit cost element button Valid from date :01.04.2008 To date :31.12.9999 comes automatically Enter Cost element category : Select 1 (Primary cost / cost reducing revenues) Select save button or Ctrl+S 10
  11. 11. 1. B) Creation of Primary cost element at CO area: Use transaction code FS00 Path: Accounting- Controlling- Cost element accounting-Master data-Cost element –Individual processing-Create primary (Tr.code KA01 ) Cost element : 400300 Rent Account Valid from :01.04.2008 to 31.12.9999 Enter Cost element category :1 (primary cost /cost reducing revenue) Save 1. C) Automatic creation of primary cost elements: 1) Marked default settings (OKB2)path : SPRO-Controlling-Cost element accounting-Master data – Cost elements –Automatic creation primary and secondary cost elements-Make defaultsettings.(Tr.code is OKB2) Give the chart of Accounts : BIL Enter Account from :400301 Account to :499999 Cost element category select 1 Save Press enter to save in your request Create batch input session (OKB3) Same path as above Give the controlling area : BIL Valid from :01.04.2008 Valid to :31.12.1999 Session name :BIL (This is text field) Execute Execute batch input session (Tr code is SM35) Same path as above Select session name : BIL Select process button Select session :BIL 11
  12. 12. Select display errors only radio buttonSelect process buttonWe get a message processing of batch input session completed.Ignore the message & select exit batch input buttonDisplay primary cost elements created (KA03)Path: Accounting-Controlling-Cost element accounting-Mater data-Costelement –Individual processing – Display- (Tr code is KA03)Select drop down button beside cost elementGive the Controlling area : BILEnterCreation of field status group by making cost center required entry field:(Tr.Code is OBC4)Select field status variant: BILDouble click on filed status groups folder100000 equity share capital G001 We can’t make cost center required for balance sheet accounts400100 Salaries Account G001 For G004 we make cost center required and assign in salaries account (i.e in expenditure accounts)Double click on field status group G004 cost accountsDouble click on General dataText make it required entry fieldSelect next group buttonCost center select required entry filedSelect next page or page down button two times.Business area make it option entry filedSavePress enter to save in your request 12
  13. 13. Assign group new field group in GL expenditure accounts (FS00)Give the GL account 400100 salaries accountCompany code :BILFrom the menu select GL account change select create / Bank / Interest tabFiled status group change to G004SaveGive the GL Account No.400300 Rent A/cCompany code :BILFrom the menu select GL account changeChange field status group to G004SaveCreation of cost centers:Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-create (Tr.code is KS01)Cost center : Dept AValid from :01.04.2008 to 31.12.9999EnterGive the name : Dept AGive the description : Dept APerson responsible :Mr.ACost center category : Select 1 productionHierarchy area : select BILHIERBusiness area :BILHCurrency :INRSelect save button or Ctrl+SIgnore the warning message press enterOne more cost center : Dept BValid from :01.04.2008 to 31.12.9999Reference cost center : Dept A 13
  14. 14. Controlling area : BIL Enter Change the name to Dept B Change the description to cost center Dept B Change the person responsible : Mr B Other fields are common Select save button Ignore the warning message press enter Cost center : Dept C Valid from :01.04.2008 to 31.12.9999 Reference cost center : Dept A Controlling area : BIL Enter Change the name to : Dept C Change the description to cost center : Dept C Change person responsible to Mr.C Cost center category : Select to 2 (service cost center) Select save button or Ctrl+s Ignore the warning message press enter Creation cost center groups: Hierarchy : BILHIER Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z Category Production Prod Service Production Production Service Business Area HYD HYD HYD BGL BGL BGL If we want to see all cost centers data – BILHIERIf we want to see production cost centers data – Create a cost center group and assignDept A . Dept B, Dept X and Dept Y.If we want to see HYD cost centers data cost – cost center group and assign Dept A, Deptb and Dept CIf we want so settled production cost centers data – create A cost center group and assignDept A and Dept B 14
  15. 15. Path : Accounting – Controlling – Cost center accounting – Master data- Cost centergroup – Create (Tr.code is KSH1)Give the cost center name : BILHYD PRODEnterDescription Hyderabad production cost centers BILSelect Edit Cost Center Insert cost center buttonSelect the cost centers Dept A Dept BSaveCreation of cost Element group:FI : Account groups Personnel cost CO:Dept wise personal cost or Administration400100 salaries Create cost element group personnel and assign 400100 -400199400101 Wages400102 Bonus400103 Staff welfare and Administration Create cost element group administration and assign 400300-400399400300 Rent400301 Telephone exp400302 Petrol exp In the report center Dept A Dept C Or Cost center GRP Cost element Or Cost element GRP personnel administration Path: Accounting –Controlling-Cost center accounting-Master data-Cost elementgroup –Create (Transaction code: KAH1)Cost element group name : BILADMINEnterDescription : Administration expenses for BILSelect insert cost element button (Shift+F4) (Edit –Cost element –Insert cost element)From 400300 to 400399 15
  16. 16. SaveTo enter exchange rate for type M for INR to EURO (Tr.Code is OB08)Select new entries buttonExchange rate type : M (Average rate)Valid from :01.10.2008From currency : INRTo : EURDirect quotation :0.02Select save button or Ctrl+SPress enter to save in your requestPosting of transaction in FI Transaction code:F-02Give the document date : Today’s dateType :SACompany code :BILPosting key :40Account :400100 salaries accountEnterGive the amount :500000Cost center : Dept AText :Salaries postingOne more expenditurePost key :40Account :400300 Rent accountEnterAmount :100000Cost center : Dept AText : Rent postingPosting key : 50Account :200105 SBI current accountEnterAmount :*Business area :BILHText : Expenditure postingFrom the menu select Document SimulateSelect save button or Ctrl+S 16
  17. 17. To view cost center wise report:Path: Accounting –Controlling-cost center accounting –Information system-Report forcost center accounting-Line items –Cost centers: Actual line items (Transaction:KSB1)Cost center select Dept A (if you want change the posting dates)Select execute buttonKeep the cursor and the first line itemSelect document buttonSelect back arrowSelect change layout button (Ctrl+F8)Select Document no.under column setSelect value in reporting currency under displayed columnsSelect left arrow or show selected filed buttonSelect reference document no.under column setSelect value in report current under displayed columnsSelect left arrowSelect business transition under column setSelect document no. under displayed columnsSelect left arrowEnterTo view co documents:Path :Up to reports for costs center accounting path is same -Line items – Codocuments :Actual costs (transaction code is KSB5)Document no. :1 to 100000ExecuteSelect folder button for document no.1Report co line items:Business transaction RKU3FI doc.13001 400100 Salaries 500000 Dept A 150000 Dept B 50000 Dept C 17
  18. 18. Report co line item002 400300 Rent 100000 Dept A003 200105 SBI 600000Report co line itemTransfer document wise /line item wise , transfer line item wiseNo FI document will be generatedOnly document will be generatedPath: Accounting – Controlling-Cost center accounting –Actual postings-Report lineitems-Enter (Transaction code is KB61)Select document no. :13Company code :BILFiscal year :2008ExecuteDouble click on line item no.1Amount under new account assignment 150000Cost center :Dept BSelect new item buttonSelect next buttonAmount under new account assignment 50000Cost center : Dept CSaveGo and see the cost center report KSB1Give the cost center Dept ASelect execute buttonTo view cost element wise to totalSelect cost element columnSelect sub totals button(Note:That is dues cost element wise total)Repot costs (Business transaction RKU1)This is used when we split a cost center in to number of cost centers or wrong cost centerpostings.No FI document will be generatedOnly CO document will be generatedTransfer cost element wise (GL account wise) 18
  19. 19. Path : Accounting-Controlling-cost center accounting –Actual postings-manualreporting of costs – Enter (Transaction code is KB11N)Cost center (old) : Dept ACost element 400100 SalariesAmount :100000Cost center new : Dept COne more cost center (old) : Dept ACost element :400300 RentAmount :25000Cost center (new) : Dept CEnterSelect save button or Ctr+SPeriod lock: FI COA) Transaction which effect To open To openFI and CO eg:COINB) Transaction which effect No check To openonly CO Eg.RKU3, RKU1C) Transaction which effect To open No checkonly FI Eg.Debit balancesheet and credit balancesheet Sept .08 March Oct 2008 to March 2009An expenditure posting in FI for September. We can’t post since periods are not open.Path: Accounting – Controlling-cost center accounting-Environment –Period lock-chang (Tr.code is OKP1)Controlling area : BILFiscal year :2008Select actual buttonSelect period :01Select lock period buttonSave 19
  20. 20. Set controlling area :(OKKS):Path :up to Environment the path is same Set controlling areaGive the controlling area :BILEnterReal time integration of controlling with FI on line reconciliation ledgerThis is used when we get for 2nd scenario (no.of company codes having one controllingarea ) all the company codes should use same Char of Accounts.Planning cost center wisePath :Accounting –Controlling cost center accounting –Planning –Cost and Activityinputs –Change (KP06)Version :select 0 (Original budget)From period :1To period :12Fiscal year :2008Select next page or page down buttonCost center group :BILHIERCost element From :400000Cost element To :499999Free Form BsedIf we select radio button If we select from based radio buttonWe have to select cost element from the The cost element list in a available ondrop down list and plan against the screen plant against cost elementsClimentsSelect form based radio buttonSelect overview screen buttonFor cost element 400100 Plan Fixed cost 1500000Distribution key 1 Equal distributionSelect cost element 400100From the menu select Goto –Period screenSelect back arrowFro cost element 400300 Plan fixed cost 960000 20
  21. 21. Distribution key 1To plan for Dept B –Select next combination buttonTo go back to previous dept –select previous combination buttonSaveTo view variance report cost center wisePath :Accounting – Controlling-Cost center accounting –Information system –Reportsfor cost center accounting –Plan /Actual comparisons –Cost centers: Actual/Plan/Variance (Tr code is S_ALR_87013611)Controlling area :BILFiscal year :2008From period :10To period :10Plan version :0Cost center Value :Dept AExecuteKeep the cursor on Salaries A/c actual costs amountSelect call up report buttonDouble click on cost centers : Actual line items keep the cursor on the first line item.Select document button 21
  22. 22. ONLINE RECONCILIATION LEDGER Reconciliation used when when number of company codes having one controlling area – 2nd Scenario It can be at controlling area All the company codes should use the same Chart of Accounts due to online reconciliation ledger, it generated in a document in FI BIL Controlling area | ------------------------------------------------------------------------ | | Company code BIL company code BSL | | ------------------------------------ ------------------------------------ | | | | | | Dept A Dept B Dept C Dept X Dept Y Dept ZIf salaries paid and posted FI at (F-02) Salaries A/c----------------------------------100000 | |Out of 100000 salaries 20000 belongs to company code BILIf we use the reconciliation account at cost center level and the 20000/- is transfer tocompany code BSL (Dept X) it passes the entry in financial automaticallyHere Reports at – No FI recordsIn BIL BooksBSL Dr 20000 To Salaries a/c 20000In BSL booksSalaries account Dr 20000 22
  23. 23. To BIL a/c 20000Customization at Finance:To copy company code BIL customization including accounting to BSLPath :SPRO-Enterprise structure – Definition –Financial accounting –Edit, copy,Delete, Check company code(T.Code EC01)Double click on copy, delete, check company codeFrom the menu select organization object – copy organization objectFrom Company code :BILTo company code : BSLEnterSelect Yes for the message (for copy the GL accounts)Select No button allocate a different local currencyIgnore the message press enterSelect create request buttonShort description :Customization for Birla Steel LimitedPress enterEnter once again to saving the requestGo on press enter till you got the message company code BIL copied to BSL with out 75number range objectIgnore the message press enterSelect back arrowDouble click on edit company code dataSelect position buttonGive the company code :BSLEnterSelect company code : BSLSelect address buttonchange the company name to : Birla Steel limitedEntersave and Save in your request button 23
  24. 24. Assign company code to companyPath :SPRO-Enterprise structure-Assignment –Financial accounting-Assigncompany code to companySelect position buttonGive the company code : BILEnterFor the company code :BSL assign BIL(group name)Select save button or Ctrl+SPress enter to save in your requestDocument type SA should allow inter company postings: (OBA7)Select type : SASelect details buttonSelect inter company postings check boxSavePress enter to save in your requestCreation of GL Masters FS00BIL Books BSL Books1) FI/CO reconciliation account under only 1)FI/CO reconciliation account under anyexpediter group which should not be a cost expenditure group which should not be aelement 400150 –Personnel group cost element 400150 personnel group2) Birla Steels limited, current assets, 2)Birla Industries Limtied current Assets,Loans & Advances 200160 Birla Steel Loans & Advances 200161 – BirlaLimited Industries LimitedSame chart of accountsBIL chart of accounts BILBSL chat of accounts BILWhen we use same chart of accounts, account description should be same in all thecompany codes.In BSL books – If we create account No.200160 – It takes Birla Steels Limited- we cannot crate our account in our books.Creation of GL masters FS00Give the GL account no. :400150 24
  25. 25. Company code :BILSelect with template buttonGive the GL account o. :400100 SalariesCompany code : BILEnterChange short text & GL account long text to FI/CO reconciliation accountSelect create / bank /interest tabField status group change to ‘ICCF’ CO < -> FI reconciliation postingSaveGive the GL Account No.200160Company code : BILSelect with template buttonGive the GL Account No.200100 Cash A/cCompany code :BILEnterSelect type/Description /tabChange short text GL account long text to BIRLA STEEL LIMITEDSelect create / Bank/Interest tabFiled status group change to G067Deselect relevant to cash flow check boxSaveGive the GL account No.400150Company code :BSLSelect with template buttonGive the GL account 400150Company code :BILEnter & SaveGive the GL account 200161Company code :BSLSelect with template buttonGive the GL account 200160 25
  26. 26. Company BILEnterSelect type / Description tabChange short text +GL long text to Bila Industries limitedSavePrepare cross company code Transaction (Transaction code is OBYA)Path :SPRO-Financial accounting-GL accounting –Business transactions-Preparecross company code transactionsCompany code 1 BILCompany code2 BSLEnterPosted in BILcleared against BSLDebit posting key :40Account debit :200160 ( Birla Steel Limited)Credit posting key :50Account credit :200160Posted in BSLCleared against BILDebit posting key :40Account debit :200161 Bilra Industries LimitedCredit posting key :50Account credit :200161SavePress enter to save in your requestCO customization ( tr code is OKKP)Maintain controlling areaAssign company BSL to controlling area BILSelect controlling area :BILSelect details buttonCompany code to controlling area: Select cross company code cost accountingReconciliation ledger document type :SA (GL accounts document)Double click on activate components / control indicators folderSelect company code validation check boxDouble click on assignment of company codes folder 26
  27. 27. Select company code :BILSelect copy as buttonChange the company code to BSLEnter & saveIgnore the warning message press enterActivate reconciliation ledger (Tr code KALA)Note: Follow through pathPath:SPRO –Controlling –Cost element accounting-Reconciliation ledger-Activatedeactivate reconciliation ledgerDouble click on activate reconciliation ledgerControlling area :BILSelect Execute buttonIgnore the warning message press enterDefine adjustment accounts for reconciliation posting (Tr code is OK17)Same pathDouble click on define accounts for automatic postingsSelect change account determination buttonSaveReconciliation account: Give the account no.400150 FI/COSavePress enter to save in your requestFI CUSTOMIZATIONDefine variant for real time integration:Path :SPRO-Financial accounting (new) Financial accounting global setting (new) –Ledger-Real time integration of controlling with financial accounting –Define variantsfor real time integrationSelect new entries buttonVariant for real time integration B1Select real time integration active check box 27
  28. 28. Select account determination active check boxKey date active from :01.04.2008Document type :SALedger group (FI) :0LText variant for :BILSelect cross company code check boxSelect cross business area check boxSelect cross profit center check boxSavePress enter to save in your requestAssign variants for real time integration to company code:Same path.Select new entries buttonCompany code :BILVariant :B1Company code :BSLVariant :B1SavePress enter to save in your requestCreation of cost center for company code BIL (KS01)Give the cost center department XValid from :01.04.2008To date :31.12.9999Reference cost center :Dept AControlling area :BILEnterChange the name to :Dept XChange the description to cost center dept XChange company code to BSL 28
  29. 29. Select save button or Ctrl+sIgnore the warning message press enterRepost costs (F-02)Cost center old :Dept ACost element :400100 SalariesAmount :20000Cost center new Dept XSaveTo make text filed optional for field status group G004 cost accounts(Tr.code isOBC4)Select field status variant for BILDouble click on field status groups folderDouble click field status G004Double click on General dataText make it optional entry fieldPress enter to save in our requestGo and see the FI documents (Tr.code is FB03)Select document list buttonGive the company code :BILEnter the date :From date To DateExecuteDouble click on document no.Select back arrowChang the company code to BSLExecuteDouble click on document no. 29
  30. 30. CROSS COMPANY CODE POSTINGSCompany code :BIL BSLOutstanding expenses of BSL paid by BILBSL Dr 25000 Outstanding 25000 To Bank 25000 To BIL 25000Paying company code : BILCredit Bank :BIL 25000Debit outstanding exp :BSL 25000Use the Transaction code :F-02Give the document date :Today’s dateType :SACompany code :BILPosting key :50Account no. :200105 SBI CAEnterAmount :25000Business area :BILHText :outstanding expense payment on behalf of BSLPosting key :40Account no :100500 out standing exp.New company code :BSLEnterAmount :*Business area :BILHText :+From the menu select document SimulateDouble click third line itemBusiness area :BILHText :+Select next item buttonBusiness area :BILHText :+ 30
  31. 31. Select save button or Ctr+SPosting byCompany code :BILCross company code no. :15 08FI posted byCompany code :BSLCross company code no. :2 08By viewing the cross company code document number – We know which company codehas initiated the posting.Select continue button Accrual orders (Imputed cost calculation)This is used for month end provision only in COThis is used for irregular expenses like BonusCost element category should be 3Accrual/ Deferral per surchargeDefine CO.No.range in interval for businessTransaction :KAZ1 – Actual cost center accrualFI Month end provision 1. Accrual / Deferral document A. Bonus provision for Nov 30.11.2008 Bonus A/c Dr.10000 To Out standing exp. 10000 Dept A B. Reverse next month 1st 01.12.2008 01.12.2008 Outstanding Exp. Dr.10000 To Bonus A/c 10000 Dept A C. Bonus provision for Dec. 31.12.2008 Bonus A/c Dr 20000 To Out standing exp 20000 Dept A 2. Open item management A). Bonus provision for Nov. 30.11.2008 Bonus A/c Dr10000 To Outstanding exp. 10000 Dept A B). Bonus provision for Dec. 31.12.2008 Bonus Dr.10000 To Outstanding exp 10000 Dept A 31
  32. 32. Month end provision Number of companies will not prepare profit & loss and Balance sheet every month, the will not make provision in the books every month in year end, companies follow accrual basis of accounting. They make provisions for the whole year. Expenditure for all the months Less (other than March) Expenditure for March More In SAP when we take production an accounting entry will be generated automatically – Finished goods valuation will be based on costs for the month. Stock valuation will be accrual orders Lower in all month other than March Accrual orders Higher in March Create overhead structure Salaries 100000 Bonus -10% on salaries 1000 Debit cost center credit cost center Dep Dummy (No accounting entry) In the month end Dept A Bonus 1000 allocation to Dept A costs will be allocated to production orders – There by Dept A will be zero- production valuation will be correct. Dept Dummy Bonus 1000In the year end – in FI when we make bonus provision for the whole year.31.03.2009 Bonus A/c Dr 1200000 To Outstanding 1200000 Dept DummyDept dummy values in the year end31.03.2009 Dept dummy 1200000 April to March 10000*12 = 120000 ====== =====In the year end Dept dummy values will be zero.Creation of GL master bonus account – personnel cost (FS00) group:- 32
  33. 33. Give the GL Account No. :400105Company code :BILSelect with template buttonGive the GL account no. :400100 (salaries)Company code :BILEnterChange short and GL account long text to Bonus accountSaveSelect edit cost element button (F8)Valid from date :01.04.2008 to 31.12.9999EnterCost element category :Select 3 accrual deferral per surchargesaveCreation of cost center – Dept dummy (KS01)Give the cost center : Dept dummyReference cost center : Dept AControlling area :BILEnterChange name to Dept dummyChange description to cost center: Department dummySelect save buttonIgnore the warning message press enterMaintain overhead structure:Path:SPRO-Controlling –Cost element accounting-Accrual calculation –percentagemethod-maintain overhead structure (Transaction code is KSAZ)Select create over head structure button (F7)Over head structure :BIL1Description :BIL overhead structureSelect save buttonRow Base 10 B1EnterGive the name salariesSelect create buttonRow O/H rate (Over head rate) Description FR To CR20 B2 Bonus 10 10 B3 33
  34. 34. EnterGive the name BonusDependency :KRS1(controlling area)Select create buttonSaveIgnore the message press enterKeep the cursor on overhead structure BIL1Select assignment button (F5)Controlling area :BILSelect actual accrual radio buttonSelect continue buttonValid from valid to overhead structure1 2008 12 2008 BIL1SaveDouble click on overhead structure BIL1Keep the cursor on B1From the menu select Goto calculation baseFrom cost element 400100SaveKept the cursor on B2From the menu select Goto overhead rateValid from Valid to Actual overhead1 2008 12 2008 10%SaveFrom 10 To 10 Crdit B3Keep the cursor on B3From the menu select go to creditCompany code :BILBusiness area :BILHValid to :12 2008Cost element :400105Cost center :Dept DummySave 34
  35. 35. Define range interval for the business transaction KAZ1-Actual cost Centeraccrual:(Transaction Code KANK)Give the controlling area :BILSelect maintain group buttonDouble click on KAZ1- Actual cost center accrualSelect CO.No range interval for BIL check boxFrom the menu select Edit-Assigned element groupSaveIgnore the warning message press enter 1. Posting of salaries for the month of August F-02 Give the document date end posting date :03.08.2008 Date :03.08.2008 Type :SA Company code :BIL Posting key :40 Account no. :400100 Salaries A/c Enter Ignore the warning message press enter Amount :100000 Cost center Dept A Text :Salaries posting Posting key :50 Account no :200105 SBI current Account Enter Amount :* Business area :BILH Text :+ From the menu select document Simulate and save Accrual calculation (KSA3) 35
  36. 36. Accounting – Controlling –Cost element accounting-Actual postings –Accrualcalculationselect cost center radio buttongive the cost center : Dept Aperiod :5fiscal year :2008deselect test run check boxselect details list check boxExecuteSelect next list level buttonGo and see the cost center report KSB1Give the cost center :Dept APosting date :01.08.2008 to 31.08.2008ExecuteSelect back arrowGive the cost center : Dept dummyExecuteBonus provision in the year end in FI Transaction F-02Give the document date & Posting :31.03.2009Type :SACompany code :BILPosting key :40Account no. :400105 bonus accountEnterIgnore the warning message press enterAmount :10000Cost center :Dept dummyText :Bonus provision for the year 2008-09Posting key :50Account :100500 outstanding exp.EnterAmount :*Business area :BILHText :+Document – Simulate and saveGo and see the cost center report KSB1Give the cost center :Dept dummyPosting date :01.04.2008 to 31.03.2009 36
  37. 37. Execute STATICALLY KEY FIGURES (SKF) This is used as a basis for allocation of costs from one cost center to other cost centers. Eg. Employee / Area/ Telephone calls Dept C Dept A Dept B (service Dept) (Production departments) Salaries 500000 No.of employee of A and B Rent 100000 Sq.meter are of A & B Telephone Exp25000 No.of telephone calls of A & B Enter CO. No range interval for the business transaction. RKS (Enter statistical key figures) SKF category Fixed TotalFixed TotalIf we choose fixed, values If we choose totalTo SKF are common for all months in the We have to enter values for SKF, for eachyear, if we don’t make changes in between and every monthEg: Employee / Area Eg: Telephone calls No.of Employees No.of Telephone calls April 2008 100 100 Aprl 2008 1000 May 2008 | | May 1500 June | | June 2000 July | | July Aug | | Aug Sep | | Sep Oct | 150 Oct Dec | | Dec Jan.’09 | | Jan 2009 Feb | | Feb March | | March 37
  38. 38. Define range interval for the business transaction RKS-Enter Statistical keyfigures Transaction Code is (KANK )Give the controlling area : BILSelect maintain groups buttonDouble click on RKSSelect Co.No.range interval for BIL check boxFrom the menu select Edit Assignment element group.SaveIgnore the warning message press enter.Create Statistical key figuresPath :Accounting – Controlling –cost center accounting master Data-Statistical keyfigures – Individual processing – Create (Tr.Code is KK01)Give the statistical key figure :EMPEnterGive the Name :EmployeeStatistical key figure unit of measurement : Select EA eachKey figure category :Select fixed values under radio buttonSavePath : Accounting –Controlling – Cost Center accounting –actual postings-statisticalkey figures-Enter (Tr.code is KB31N)Received cost center : Dept AStatistical KF : EMPTotal quantity :500Received cost center : Dept BStatistical KF :EMPTotal quantity :250SavePeriod end closingIn the month end, we allocate costs from one cost center to other cost centers 38
  39. 39. Dept C Dept A Dept B(Service department) (Production departments)Salaries 500000 no.of employee of A and BWages 300000 No.of employee of A and BRent 50000 Percentage basisBasis of allocation can be percentage method statistical key figures method /activity type(machine hour / labour rate)Allocation methods: 1. Assessment : A) Transfer primary cost postings and secondary cost postings.Dpt X Dept C Dept A Dept BWages 100000 Salaries 500000 Salaries 400000 Salaries 300000 Wages 300000 Rent 50000 Add all 85500 Add all from C 95000 10% All from Dept X 100000 ---------- ----------- ----------- Less 950000 1255000 395000 ===== ======= =======AllocationPrimary cost postingsSecondary cost postings B) Receiving cost centers can’t track original cost element Dept A and B will not show the transfer value –how much salaries wages and rent. C) Define Co.No.range interval for business transaction RKIU actual overhead assessment. 2. Distribution A) Transfer only primary cost postings B) Receiving cost center can track original cost elements. C) Sender should be only cost center D) Define Co.No.range interval for the business transaction RKIV actual overhead distribution. 3. Periodic reposting: A) Transfer only primary cost postings B) Receiving cost center can track original cost elements. C) Sender can be a cost center or interval order. D) Define Co.No.range interval for the business truncation. RKIB periodic reposting. 39
  40. 40. 4. Indirect activity allocation. A)Transfer only primary cost postings. B) Receiving cost center can track original cost elements. C) Sender should be only cost center. D) Transfer quantities as well as values. E) Define Co.No.range interval for the business truncation. RKIL Indirect activity allocation .Which over method we follow, we have to create cycles.When the allocation basic is different for the cost elements in the cost center, we have tocreate number of cycles for number of segments for a cycle.Dept C Dept A Dept B(Service Department) (Production departments)Salaries 500000 No.of employees of A and BWages 300000 No.of employees of A and BRent 50000 Percentage basisOption 1: Cycle 1 Cycle 2 (Salaries and wages allocation) (Rent allocations) | | Segment 1 Segment 1Option 2 Cycle 1 | ---------------------------------------------- | | Segment1 Segment2 (Salaries and wages allocation) (Rent allocation) 40
  41. 41. ASSESSEMENT1. Creation secondary cost element : i.e (that is) assessment cost element : Path: Accounting –Controlling –Cost element accounting-Mater data-Cost element –Individual processing –Create secondary (KA06) Give the controlling area :BIL Enter Cost element :1000000 Valid from :01.04.2008 to 31.12.9999 Enter Name and description :Assessment cost element. Cost element category :42 (Assessment ) Save 2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead assessment Use the Truncation code :KANK Give the controlling area :BIL Select maintain groups button Double click on RKIU Select Co.No.range interval for BIL check box From the menu select Edit –Assignment element group. Ignore the message press enter Creation of assessment cycle: Accounting –Controlling –Cost center accounting-Period and closing –Current settings–Define assessment (Tr.code S_ALR_87005742) 41
  42. 42. Give the cycle :BIL1Start date :01.04.2008EnterText : Assessment cycleSelect iterative check box.Select save button or Ctrl+SPress enter to save in your requestSelect iterative check boxDept C Dept A 60% 300000 54000Salaries 500000 Dept B 30% 150000 27000Less :Allocation 500000 Dept Z 10% 50000 9000 -------- 0Add: Allocation 90000Less :Allocation 90000 ------- 0Add: Allocation 1800Dept ZWages 400000 Dept X 50% 225000 4500Add: Allocation 50000 Dept Y 30% 135000 2700 -------- 450000 Dept C 20% 90000 1800Less : Allocation 450000 ------- 0 ====We have to run number of items to make both cost center values zero. If we selectinteractive check box, system will run number of items automatically till both cost centervalues become zero.Select attaché segment button.Segment name : Segment 1Description : Salaries allocationAssessment cost element :select 1000000Sender rule :select posted amountsShare in % :100Select actual value origin radio buttonReceiver rule :Select variable portionsVariable portion type :Select actual statistical key figures 42
  43. 43. Select sender / receivers tabSender cost center :Dept CUnder Cost element :400100 (Salaries a/c)Under Receiver cost center group :BILHYDPRODSelect receiver tracing factor tabStatistical key figure :EMPSelect receiver weight factors tabSelect save button or Crl+SPress enter to save in your requestSelect attaché segment buttonSegment name segment2Description :Rent allocationAssessment cost element :1000000Sender rules :Posted amountSharing in % :100%Select actual value origin radio buttonSelect receive rule :Fixed percentagesSelect senders/ receivers tabsender cost center :Dept CCost element :400300 (Rent )Receiver cost center group : BILHYDPRODSelect receiver tracing factor tabDept A 70Dept B 30SavePress enter to save in your requestGo and see the cost center Report (Tr code is KSB1)Give the cost center :Dept CPosting date :01.10.2008 to 31.10.2008ExecuteSelect cost element columnSelect sub totals button 43
  44. 44. Dept C A BSalaries 1500000 No.of employees 500 250 100000 50000Rent 25000 Percentage basis 70 30 17500 7500Execution of assessment cycle:Path :Accounting –Controlling –Cost center accounting –Period end closing-Singlefunctions-Allocations –Assessment (KSU5)Give the period :7 (October)Fiscal year :2008Deselect text run check boxSelect details list check boxCycle select :BIL1ExecuteSelect receiver button 44
  45. 45. INTERNAL ORDERSThis is used to view costs for a specific task.Eg. A) Vehicle wise running expensesManagement has to task decision whether to sell the (or) keep the vehicle in companyA) petrol expenses for the vehicle B) Repairs to the vehicleIt we take GL accounts in FI –we will not create each vehicle wise petrol expenses andrepairs account.In cost center accounting –vehicles will be under administration cost center and the petrolexpenses repairs and administration expenses will be posted to administration cost center.By creating vehicle as an internal order we can get the costs.B) Telephone expenses: If we want to know telephone wise expenses in FI –we will have one account for all telephones. If we take cost center –It will be entered in administration cost center - We can not get telephone wise expenses directly. By creating telephone as an order we can get telephone wise expenses.C) Production order costs In a month no. of production orders will be executed. Some production orders consume more raw material and same production orders consume less raw material. If FI we have only GL account raw material consumption – We don’t know order wise consumption. By crating production order, we can get order wise costs.D) Exhibition costs Company is conducting an exhibition Salesmen salaries One account Conveyance Different account Advertisement Different account Discounts Different account 45
  46. 46. We dont know the exhibition costs by creating an order we can get exhibition costsOrders will be of 2 types1)Real orders 2)Statistical ordersSettlement is possible settlement not possibleWe can settle order statistical orders are used for decision making To Cost Center (Internal settlement) From Co to Co GL Accounts Assets (External settlement ) (From CO to FI)When we transfer from cost center –To cost centers allocation by assessment /Distribution periodic reposting / Indirect activity allocation.When we transfer from Internal order settlement.Eg. Telephone expenses Dr 50000 Cost center Dept Order Tel no.66110883 To Bank 50000 The cost will be allocation to production orders from COIn the production order valuation we can’t take.(50000+50000)We have to take only one time 50000When we are posting to no. of cost objects are will be real and others will be statistical.At the time of order creation there is a statistical order check box. A) When we select statistical order is statistical order check box. Order is statistical (Automatically cost center will be real) B) If we don’t select statistical order check box Order is real (Automatically cost center will be statistical )Statistical order :Telephonewise expenses order we create as statistical order.Telephone expense Dr 50000 Cost center Dept A Order Telephone no.66611983 Statistical To Bank 50000 Cost Center Dept ATelephone expenses 50000 Allocation to paid order 50000 46
  47. 47. Cost center Dept A – ZeroIn the month end we allocation costs from Dept A to production orders there by costcenter Dept A will be zero.Order telephone no.66611983Telephone expenses 50000Management can see telephone wise expense at any point of time afterwards.Suppose we create order as real orderTelephone expenses Dr 50000 Cost center Dept A To Bank 50000 order telephone no.66611983 RealCost center c dataTelephone Expenses 50000 Order Telephone no.6661987Telephone expenses 50000 Allocation to production 50000Order will be zeroIn the month end we allocate cost from order telephone no.66611983 to production orderthere by order will be zero.Afterwards management can’t see telephone wise expense.Creation of order types:Path : SPR O –Controlling –Internal orders – order master data-Define order types(KOT2_OPA)Select new entries buttonOrder category :Select 01 Internal order (Controlling)EnterOrder type :BILTDescription :Telephone orders for BILPlanning profile :select 000001 (General budget /plant profile)Object class :Select Over head costSelect release immediately check boxSaveWe get message no.range not processedIgnore the message press enterSelect assign /change interval button beside no.reage interval 47
  48. 48. Double click order type :BILTSelect motor pool A-ZZZZZZZZZZZZ(External)From the menu select Edit Assign element groupSaveIgnore the message press enterCreation of filed status group by making cost center and internal order requiredentry fields (OBC4)Select field status variant :BILDouble click on field status group folderSelect field status group G004 cost accountsSelect copy as buttonChange the filed status group to G002Change the text to cost accounts (CC & IO required) IO =Internal orderEnterSave CC=Cost CenterPress enter to save in your requestDouble click on G002Double click on additional account assignmentCO /PP order make it required entry field.SaveCreation of GL master telephone expense (FS00)Give the GL account no.400305Company code :BILSelect with template buttonGL account 400300 Rent accountCompany code :BILEnterChange short text and GL a/c long text to Telephone expensesSelect crate / Bank/Interest tab 48
  49. 49. Change the filed status group to G002SaveSelect edit cost element buttonValid from date :01.04.2008EnterCost element category :Select 1SaveCreation of Internal orders:Path :Accounting –Controlling-Internal orders-Master data-Special functions –Order–Create (Tr code is KO01)Order type :Select BILTEnterOrder no. :BIL 66611983 (Telephone no.)Description :Telephone order no.66611983Company code :BILBusiness area :BILHSelect control data tabSelect statistical order check boxSaveOne more orderOrder type :BILTEnterOrder :BIL66611984Description :Telephone order no.66611984Company code :BILBusiness area :BILHSelect control data tabSelect statistical order check boxSave 49
  50. 50. Creation order groupUp to master data the path is same Order group Create (Tr code is KOH1)Give the order group name :BILHYDTELEnterDescription :Hyderabad order group (GRP)for BILSelect insert order button(Select menu bar Edit Order Insert Order)Select to orders :BIL66611983 :66611984SavePosting of transaction in FI (F-02)Document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :400305 Telephone expEnterGive the amount :100000Cost center :Dept AOrder :BIL66611983Text :Telephone expensesPosting key :50Account no. :200105 (SBI current account )EnterAmount :*Business area :BILHText :+From the menu select –Document –Simulate and saveTo view internal order wise reportPath :Accounting –Controlling-Internal order-Information system-Reports for Intervalorders -Line items –Order -Actual line items-(Tr. Code is KOBIGive the order no.BIL66611983Remove the order group 50
  51. 51. ExecuteKeep the cursor and telephone expense line item select document buttonPlanning order wisePath :Accounting –Controlling –Internal orders –Planning –Cost and activity inputs –Change (KPF6)Version :0From period :8 (November)To period :8Fiscal year :2008Select next page or page down buttonGive the order no. :BIL66611983Cost element :400305 Telephone expenseSelect from based radio buttonSelect view screen buttonCost element :400305Total plan cost :75000Select save button or Ctrl+STo view variant report order wisePath :Accounting Controlling-Internal order –Information system-Reports for internalorder-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)Controlling area :BILFiscal year :2008From period :8 (Current month)To period :8Pant version :0Order values :BIL66611983ExecuteReal orders:They are used for vehiclewise expensesPetrol expenses Dr 50000 Order no.AP9Z1234 51
  52. 52. To Bank 50000In the month end: Cost center Dept AOrder no.AP9Z1234 Settle to Cost center Dept B Cost center Dept CSettlement can be percentage basis / ratio basis /Amount basis Order No AP9A1234Petrol expenses 50000 Allocation Dept A 25000 Dept B 15000 Dept C 10000 ------- ------ 50000 50000 ==== ====Order will be zeroPetrol expense Dr 50000 Cost center:Common Order No.AP9Z1234 Statistical To Bank 50000In the month end from cost center common allocate to Dept A, Dept B and Dept C byassessment / Distribution / Periodic posting /Direct activity allocation. Cost center commonPetrol Expenses 50000 Allocation to Dept A 25000 Dept B 15000 Dept C 10000 --------- ------- 50000 50000 ==== =====Cost center will be zeroOrder no.AP9Z1234Petrol expense 50000 =====Management can see vehicle wise expenses at any point of item afterwards.Creation of filed status group by making only internal order required entry filed(OBC4) 52
  53. 53. Select filed status variant :BILDouble click on filed status group folderSelect field status group G002Select copy as buttonChange field status group to G010Change the text to cost accounts (IO required )Enter and savePress enter to save in your requestDouble click on G010Double cock additional account assignmentsCost center make it optional entry fieldSaveCreation of GL master petrol expense under administration group (FS00)Give the GL Account no. :400310Company code :BILSelect with template buttonGive the GL account no.400300 Rent accountCompany code :BILEnterChange short text and long text to petrol expensesSelect create/bank /interest tabField status group :G010SaveSelect edit cost element buttonValid from date :01.04.2008EnterCost element category :01SaveCreation of secondary cost element i.e. Statement cost element (KA06): 53
  54. 54. Give the cost element :1000001EnterName and description settlement cost elementCost element category :Select 21 internal settlementSaveMaintain allocation structure:Path :SPRO-Controlling –Internal orders-Actual posting- Settlement-Maintainallocation structuresSelect new entries buttonAllocation structure :B1Text :BIL allocation structureSavePress enter to save in your requestSelect :B1Double click assignments foldersSelect new entries buttonAssignment :01Text :Vehicle expenses settlementSaveSelect :01Double click on source folderFrom cost element :400310 Petrol expensesSavePress enter to save in your requestDouble click on settlement cost elements folderSelect new entries buttonReceiver category :Select CTR cost centerSettlement cost element :1000001Save 54
  55. 55. Petrol expenses will be settled to cost center by using secondary cost element settlementcost element.Through orders.Maintain settlement profiles:Same pathDouble click on maintain settlement profilesSelect new entries buttonSettlement profiles :BIL1Description :BIL settlement profileAllocation structure :B1Select to be settled in full radio buttonDouble click on CTR cost centerSelect % settlement check boxSelect equivalence number check boxSelect amount settlement check boxUnder valid receiversFor cost center :Select settlement distribution rules :999Residence time :12 monthsSavePress enter to save in your requestRule 1:Order no.AP9Z1234 settle cost center Dept A 30000Petrol expenses 50000 settle cost center Dept B 15000 Dept C 5000Rule 2Order No.AP9Z1234 Settle to cost center Dept A 85%Petrol expenses 50000 Settle to cost center Dept B 10% 5%Order no.AP9Z1234 settle to cost center Dept 4:Petrol exp 50000 Dept 3: Dept 1: 55
  56. 56. Maintain number range for settlement documents:Go through Same path (Tr.code is SNUM)Select maintain groups buttonDouble click on controlling area BILSelect Standard accounting document check boxFrom the menu select Edit Assign element groupSaveIgnore the message press enterCreation of order type (KOT2_OPA)Select new entries buttonOrder category :Select 01 Internal order (controlling)EnterGive the order type :BILV Vehicle order type BILSettlement profile :BIL1Budget profile :0000001 (General budget profile)Object class select :Overhead costsSelect release immediately check boxSaveIgnore the message press enter save in your requestSelect assign /Change intervals button beside no.range intervalDouble click on BILVSelect motor pool A-ZZZZZZZZZZZZZZ external check boxFrom the menu select Edit –Assign element group.SaveIgnore the message press enterDefine interval for the business truncation K0A0-Actual settlement. Usethe transactions code (KANK)Give the controlling area :BILSelect maintain groups button 56
  57. 57. Double click on KOAO actual settlementSelect interval for BIL check boxForm the menu select Edit –Assign element group.SaveIgnore the warning message press enterEND USER AREA:Creation of internal order (KO01)Give the order type :BILVEnterGive the order :AP9Z1234Description :Vehicle no.AP9Z1234Company code :BILBusiness area :BILHSelect control data tabDeselect statistical order check boxSelect settlement rule buttonCategory :CTR cost centerSettlement receiver :Dept AGive the percentage :70One moreCategory :CTRSettlement receiver :Dept BPercentage :30SaveIgnore the warning message press enterPosting of petrol exp F-02Give the document date :Today’s dateType :SACompany cod :BILPosting key :40 57
  58. 58. Account no. :400310 petrol exp.EnterGive the amount :100000Give the order no. :AP9Z1234Text :Petrol exp.Posting key :50Account no. :200105 SBI current accountEnterAmount :*Business area :BILHText :+From the menu select menu document –Simulate and saveActual settlement :Path :Accounting –Controlling-Internal order-Period end closing-Single functions-Settlement –Individual processing (K088)Give the order :AP9Z1234Settlement period :8 (current month)Fiscal year :2008Deselect test run check boxSelect check transaction date check boxSelect execute buttonSelect details list buttonNote : Order means overall expenses Eg: Vehicle Expenses Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc 58
  59. 59. BUDGETING AND AVAILABILITY CONTROLPlanning Budgeting1. We can plant cost element wise in the 1.Budgeting will be done order wiseorder2. We can do planning period wise in a 2. Budgeting should be done year wiseyear (Month wise)3.Micro level (Lower level) 3. Marco level (High level) For budgeting SAP has given availability control Order no.AP9Z1234 Budget amount 500000 Option 1 Option2 Option 3 Give Give warning Give Warning To the user Error1 To the user And inform to Budget managerIf actual amount exceeds 85% of budget 425000 OrIf the variance is above 20000 i.e actual 5200000 OrBoth Whichever activity comes first OrIf a actual amount exceeds 70% of budget go for option1If actual amount exceeds 85% of budget go for option 2If actual amount exceed 100% of budget go for option 3When we do budgeting it generate a document –We have to give budgeting –No. rangeinterval only for 04 (Hard coded by SAP)This is given at client level and not at controlling area level –it is not year specify.Note : Order Eg.Vehicle Expenses Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc.,Maintain no.range for budgeting: 59
  60. 60. Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintainno.ranges for budgeting (Tr code is OK11)Select change intervals buttonDefine tolerance limits for availability controlSame pathSelect new entries buttonControlling area :BILProfile :select 000001 General budget :++ all activity groupsAction :select 2 waring with mail to person responseUsage :85SavePress enter to save in your requestSpecify exempt cost elements from availability controlSame pathPetrol expensesRepairsDrivers salary is Fixed costWe can specify when we post to driver’s salary all with order AP9Z1234 –Even if, itexceeds 85% of budget no. message need to be given.It is known expenditureSelect new entries buttonControlling area :BILCost element :400100 Salaries accountSavePress enter to save in your requestMaintain budget managerSame pathSelect new entries buttonControlling area :BILOrder :BILV 60
  61. 61. Object class :OCost (Overhead cost)User name :SAP user (budget manager)SavePress enter to save in your requestBudgeting order wise (END USER AREA)Path :Accounting-Controlling –Internal order-Budgeting-Original budget –Change(Tr code is K022)Order :AP9Z1234EnterFor the period :500000 (Budget amount)Over / budget also 500000From the menu select Extras –Availability: Control –ActivateSavePosting of petrol expenses (F-02)Give the document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :400310 Petrol expensesEnterGive the amount :350000Order :AP9Z1234Text :Petrol expensePosting key :50Account no. :200105 SBI current accountEnterGive the amount :*Business area :BILH 61
  62. 62. Text :+From the menu select –Document –Simulate and saveIgnore the message press enterTo view in box of the budget managerPath :SAP Menu Office –Work place (Tr code is SBWP)Select inbox folderWe get a message accounting document no. 62
  63. 63. PROFIT CENTER ACCOUNTINGThis is used to view profitability division wise /product wise /location wise if businessarea is not use in FIIdea scenario Company FI | Company code FI | Business area FI (Location) |----------------------------------------------------------------------------------------| | | |Steel Cement Pharma Co-profit centerDivision Division Division Accounting| |Product wise Co profitability AnalysisOption 1 Option 2Hyderabad location HYD BGL MOM | | | |Steel Cement Pharma Steel cement PharmaProfitability Profitability Balance sheetThe advantage of profit center accounting is it derives profit center automatically thoughderivation rules.A) In case of expenditure Tough cost centersB) IN case revenues Automatic account assignmentC) In case of balance Though business areaSheet it items (Applicable for option 2)Eg:a) At the time of creation of cost center assign profit center Dept A-Assign profit center steel 63
  64. 64. b) At the time of posting wages a/c Dr 500000 Dept A To Bank 500000It updates cost center Dept A as well as profit center steel.We have to create dunning profit center. At the time of posting, when there is noderivation rules, system updates dummy profit center. Transfer form dummy profit centerto respective center. Create derivation rule so that future transactions will not go todummy profit center. They will go to respective profit centers.Set controlling area (OKKS)Path :SPRO-Controlling –Profit center accounting-Basic settings-Set controlling areaGive the controlling area :BILEnterMaintain controlling area settings: (OKE5)(Follow through path )Path :Up to base settings the path is same- Controlling area settings-Maintaincontrolling area settingsStandard hierarchy :BILSelect elimination of business volume check boxProfit center local currency type :Select 20 Controlling area currencySelect confirm buttonSelect store truncation currency check boxSaveElimination of internal business volumePurchase Material no. 1 Profit center steelOrder Vendor no. 1234| Plant HYD| Profit center Steel| Qty 1 Kg| Rate 100GoodsReceiptIt should no take in steel profit center 100+100It should take only one time 64
  65. 65. Create dummy profit centerPath :SPRO-Controlling-Profit center accounting-Master data-Profit center-Createdummy profit center(Tr code is KE59)Double click on dummy profit centerGive the dummy profit center :BIL dummySelect basic data buttonName :BIL dummyDescription :Dummy profit center for BILProfit center group :BILSaveSet control parameters for actual datePath : Up to basis settings the path is same Controlling area settings -Activate directpostings-Set control parameters for actual data (Tr code is 1KEF)Select new entries buttonFrom year :2008Select Line items check boxSelect online transfer check boxSaveMaintain plan versionsUp to activate the path is samePlan version Maintain plan versionSelect version :0 Plan /Actual VersionDouble click on settings for profit center accounting folderSelect new entries buttonYear :2008Select online transfer check boxSelect line items check boxExchange rate type :B (bank selling rate)Save 65
  66. 66. Press enter to save in your requestDefine no. ranges for local documents A) At the time of creation of cost center –Assign profit center Dept A-Assign profit center B) At the time of posting Wages A/c 500000 Dept A To Bank 500000 When there is no derivation rule –It updates dummy profit center Transfer from dummy profit center To Profit center steel No FI document will be generated No co document will be generated once profit center document will be generated (local) Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings: Actual –Define number ranges for local documents (Tr code is GB02) Select maintain groups button Select actual document from direct posting with GB01 check box From the menu select interval Maintain Give the company code :BIL Enter Select interval button Year :2008 From no :1 To :100000 Enter and save Press enter to save in your request Select back arrow Select planned doc.with direct posting with GB01 check box Form the menu select interval maintain Give the company code :BIL Enter Select interval button 66