1. The document outlines the key steps for setting up and using different cost and profitability accounting components in SAP R/3 including creating a controlling area, cost elements, cost centers, internal orders, profit centers, and performing profitability analysis. 2. It describes how to define objects like cost elements, cost centers, internal orders, profit centers, operating concerns and profitability segments. 3. It also lists important transaction codes for master and transactional data maintenance and generating reports for actual vs plan comparisons and profitability analysis.

1. SAP R/3 – FICO
CONTROLLING
CONTROLLING AREA :
1. Creation of Controlling Area – OKKP
(SPRO/ Controlling/General Controlling/Organization/ Maintain Controlling Area)
a) Assignment control.
b) Activate components / control indicators.
c) Assignment of Company Code. (CoArea = CoCode, we can assign only one Company code)
2. Maintain Number Range for Controlling Documents – KANK.
3. Maintain Versions.
COST-ELEMENT ACCOUNTING
1. Creation of Primary Cost Elements – KA01 (can be created under FI also – FS00)
(SPRO/ Controlling/ Cost Element Actg./ Master Data/ Cost Elements/ Create Cost Elements)
2. Creation of Secondary Cost Elements – KA06
3. Creation of Cost Element Group – KAH1
4. Change Cost Element Group – KAH2.
COST-CENTER ACCOUNGING:
1. Creation of Cost Center Account – KS01 (Cost center in Controlling is what Business Area in FI)
2. Change cost center – KS02
3. Creation of Cost Center Group – KSH1
4. Change Cost Center Group – KSH2
5. Postings in FI : F-02
6. Line item display in Cost Center – KSB1
(SAP/ Accounting/ Controlling/ Cost Center Accounting/ Information System/ Reports for Cost
Center Accounting/ Line items/ Cost Center Actual Line items)
7. REPORTS : Plan / Actual Comparison : S_ALR_87013611
INTERNAL ORDERS :(Sub task under cost center)
1. Define Order Types (groups)– KOT2
(SPRO/ Controlling/ Internal Orders/ Order Master Data/ Define Order Types)
2. Create individual internal orders (under the group)– K001
(SAP/ Actg./ Controlling/ Internal Orders/ Master Data/ Special Functions/ Order/ K001-Create)
3. Change Field Status Group (where internal order is required entry) – (From G004 to G002)
(Note : G001 – No Cost centre, G004 – Cost Center, G002 – Cost Center & Internal Orders)
(Copy G004 as G002 & make required changes – CO/PP required entry)
4. Posting – (with Cost Center & Internal Orders) – F.02
5. Line item display in Internal Orders – KOB1
(SAP/ Accounting/ Controlling/ Internal Orders/ Information System/ Reports for Internal Orders/
Line Items/ KOB1 – Orders – Actual Line Items)
6. REPORTS : Plan / Actual Comparison : S_ALR_87012993
NOTE : Revenue postings are not allowed in Internal Orders.

2. SAP R/3 – FICO
CONTROLLING
PROFIT CENTER ACCOUNTING :
1. Maintain Controlling Area Settings – OKE5
(First set controlling area, and then)
(SPRO/ Controlling/ Profit Center Accounting/ Basic Settings/ Controlling Area Settings/ Maintain
Controlling Area Settings)
2. Create Dummy Profit Center – KE59
3. Set Control Parameters for Actual Data – 1KEF
4. Maintain Plan Versions
5. Create Profit Center – KE51
6. Assign Profit Center to Cost Center – KS02
7. Define Number Range for Local Documents – GB02
8. Maintain Field Status Variants (Copy & Create G010 – Profit Center required entry)
9. Changing Control Indicators in Cost Center – KS02
10. Maintain Automatic A/c assignment of Revenue Elements – OKB9.
11. Posting – F.02
12. REPORTS : Plan / Actual / Variance : S_ALR_87013326
PROFITABILITY ANALYSIS
1. Define Operating Concern – KEA0
2. Set Operating Concern – KEBD
(KEA5 – To change the characteristics, KEA6 – To change the value)
3. Define Profitability Segment – KEQ3
4. Define Characteristics Hierarchy – KES3
5. Define Characteristics Derivation – (Under SPRO – KEDR) (Under SAP – KEDE)
6. Create REPORT – KE31, KE91, KE32.
(SAP/ Information System/ Define Reports/ Create Profitability Reports)
7. Execute REPORT – KE30.