Managerial Accounting v1.0

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Contents
CONTROLLING ............................................................................................................................ 3
Maintain Controlling area ........................................................................................................... 3
Sub-module in CO ...................................................................................................................... 3
Cost element Accounting........................................................................................................ 3
Cost Centre Accounting.......................................................................................................... 3
Internal Orders ........................................................................................................................ 3
Profit Centre Accounting ........................................................................................................ 3
Profitability Analysis .............................................................................................................. 3
Product Costing....................................................................................................................... 4
Maintain Controlling Area (OKKP) ....................................................................................... 4
Maintain number range for Controlling document (KANK) Insert........................................ 4
Maintain Version..................................................................................................................... 5
Period Lock............................................................................................................................. 5
Period Lock procedures (OKP1)............................................................................................. 5
Cost Elements Accounting.............................................................................................................. 6
Primary cost elements ................................................................................................................. 6
Secondary cost elements ............................................................................................................. 6
Cost elements creation................................................................................................................ 6
Manual Creation.......................................................................................................................... 6
Automatic Creation..................................................................................................................... 6
Manual Creation.......................................................................................................................... 6
Cost Account updation............................................................................................................ 6
Revenue Account updation..................................................................................................... 7
Automatic Updating................................................................................................................ 7
A) Make default settings (OKB2)........................................................................................... 7
B) Create Batch input session (ORB3) ................................................................................... 7
C) Execute Batch input Session.............................................................................................. 8
Display of Cost elements index (KA23)................................................................................ 8
Cost center Accounting................................................................................................................... 8
Cost Centre Accounting.............................................................................................................. 8
Cost Centre Category Creation (OKA2)..................................................................................... 8

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Creation of Cost Centre group (KSH1) ...................................................................................... 8
Creation of Cost Centre (KS01).................................................................................................. 9
Display of Cost Centre Index (KS13)......................................................................................... 9
CO Documents Number ranges Settings (KANK) ................................................................... 10
CO Documents Posting through FI........................................................................................... 10
Display of CO Documents (KSB5)........................................................................................... 10
Display of Cost centre Reports (KSB1).................................................................................... 11
Planning of Cost Centre (KP06) ............................................................................................... 11
Actual / Plan Variants Reports (S_ALR_87013611)................................................................ 11
REPOST CO LINE ITEMS .......................................................................................................... 11
CO Documents number range settings ..................................................................................... 12
Repost cost line item Procedures (KB61)................................................................................. 12
REPOST COST ............................................................................................................................ 13
Repost Cost Procedures (KB11N) ............................................................................................ 13
STATISTICAL KEY FIGURES .................................................................................................. 13
Creation of statistical key figures (KK01)................................................................................ 14
Define plan value for telephone bills (KP06) ........................................................................... 15
Statistical key figures posting ................................................................................................... 15
A) CO Documents number ranges settings........................................................................... 15
B) Statistical key figures Posting procedures (KB31N) ....................................................... 15
Planning value for statistical key figures ( KP46) .................................................................... 15
Reports (S_ALR_87013611) .................................................................................................... 16
MANNUAL COST ALLOCATION ............................................................................................ 16
Distribution ............................................................................................................................... 16
Distribution Cycle Preparation (S_ALR_87005757)................................................................ 17
Distribution cycle run (KSV5).................................................................................................. 17

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CONTROLLING
SAP Calls Managerial Accounting as ‘Controlling’ and the module is commonly known as ‘CO’.
The CO module is thus primarily oriented towards managing and reporting cost/revenue and is
mainly used for internal decision making. As in which any other module this module has
configuration setup and application functionality.
The controlling module focuses on the internal users and helps the managements by providing
reports on cost centres, contribution margin and profitability etc.
Maintain Controlling area
A controlling area is the central organizational structure in Controlling (CO) and it is used in the
cost accounting. The controlling area, as in the case of company code, is a self contained cost
accounting entity for internal reporting purpose. The controlling area is assigned to company
code so as to ensure that necessary transactions posted in FI are transferred to controlling for cost
accounting process.
1- A company code needs to be attached to the controlling area (1:1 relationship).
2- More than one company code can work with same controlling area.
3- A Chart of Account can be assigned to more than one controlling area
4- One or more controlling area can be defined under an Operating Concern
5- At Client level there can be one or more controlling areas.
Sub-module in CO
Cost element Accounting
Cost elements are nothing but updating of the GL master records into controlling
Cost Centre Accounting
This module we are using to view the department wise Cost
Internal Orders
These internal orders we are used for viewing the specific cost of cost with periodical dead end.
Profit Centre Accounting
This profit centre accounting we are using for viewing the profit in product wise / product group
wise / location wise etc.
Profitability Analysis
This profitability analysis we are using for viewing the profit at a time in different parameters
Like product wise/ Customer wise/ Plant wise/ Division wise/ Sales organization wise/
Distribution channel wise.

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Product Costing
This product costing we are using for valuate the inventory value like finished goods
Work-in-progress
Maintain Controlling Area (OKKP)
Path: Spro → Img → Controlling → General Controlling → Organization → Maintain
Controlling Area
Double click on Maintain Controlling area
Click on new entries
Controlling area – TACO (Any)
Name – Controlling area for TAST
Assignment of Control
Company code – TAST Area – Cross company code cost accounting
Currency – 10 (Company code Currency)
Currency – INR Chart of Account – CHAC
Fiscal year variants – T1 (std – V3)
Cctr- standard hierarchy – TAST_CCTR (Any)
Double click on Assignment of Company code folder
Click on yes
Click on new entries
Cocd Name
TAST
Press enter key and Save
Double click on Activates components/ Control indicators folder
Click on new entries
Fiscal year – 2009
Cost center – Component Active (Tick mark)
Activate AA Activity type (AA- Activity allocation)
Order managements – Components active
Select profit center Accounting
Press enter key and Save
Come back 5 times
Maintain number range for Controlling document (KANK) Insert
Path: Spro → Img → controlling → General controlling → Organization → Maintain number
range for controlling documents
Co-area – TACO
Click on group tab (f6)
Now go to group in Menubar → Insert
Text – Controlling documents number range for TAST
From Number To Number
100000

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Press enter key and Save
Come back wise
Maintain Version
Path: Same
Now go to Extras in Menubar → Set controlling area
Controlling area – TACO
Select – 0 Version
Double click on Controlling area settings folder
Again Select 0 Version
Double click on settings for each Fiscal year folder
Note: Now by default we will get 5 fiscal year in this 5 fiscal year if the current fiscal year is not
exist so that we have to create the current fiscal year
Click on new entries for creation of new fiscal year
Fiscal year – 2009
Deactivate Version Locked (If you activate this check box that means it is not possible to
maintain the value in 2009)
Deactivate Integrated Planning (If you want to transfer to the planning value from one cost
object to another on that time we have to activate this check box)
Activate Copying allowed (If you activate this check box it is possible to copy the plan value
from one fiscal year to another fiscal year)
Exchange rate type – M (Avg rate)
Press enter key and Save
Note: Just like this we can create any number of fiscal year. If the 2008 is already exist no need
to create
Come back 4 times
Period Lock
In this period lock we are locking the CO business transaction that mean we are not giving the
authorization for users to post to CO transaction
Period Lock procedures (OKP1)
Path: Sap easy access → Accounting →Controlling → Cost center accounting → Environment
→ Period lock → change
Controlling area – TACO
Fiscal year – 2009
Version – 0
Click on Actual tab
Transaction 01 (First period)
CO through posting from FI Activate
Click on Save

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Now got to F-02 try to post CO documents on the time you will get the following message
“Transaction CO through Posting from FI has been locked”
Deactivate the period lock check box
Cost Elements Accounting
Cost element is nothing but the updating master data in to CO. There are two types of cost
elements they are
1) Primary cost elements
2) Secondary cost elements
Primary cost elements
The primary cost elements represents the consumption of production factors like raw-material,
human resources, utilities etc. The primary cost elements have their corresponding GL account in
FI. All the expenses or revenue accounts in FI correspond to the primary cost elements in CO.
SAP treats revenue elements also as primary cost elements in CO processing. The only
difference is that all the revenue elements are identified with negative sign while posting in CO.
The revenue elements correspond to the revenue account in FI, and they all under the category
01/ 11 of Cost elements category.
Secondary cost elements
The Secondary cost elements represents the consumption of production factors provided
internally by the enterprises itself, and are the presents only in the CO. Those elements we are
recorded with in the CO side only is called secondary cost elements
Cost elements creation
There are two type of cost elements creation procedures
1) Manual Creation
2) Automatic Creation
Manual Creation
In this manual creation after the creation of GL account users should update this account in to
CO
Automatic Creation
Here after the creation of GL accounts the system automatically update this account in to CO
Manual Creation
Cost Account updation
Go to FS00 Select the salaries account
Click on change field

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Click on create/bank/interest tab
Now change the field status group in to G004 (Cost account)
Press enter key and Save
Click on edit cost elements tab
Cost elements - Salaries Account
Valid from – 01-04-09 to 31-12-9999
Click on master data tab
Cost elements category – 1 (Primary Cost)
Press enter key and Save
Note: Just like we can update all cost of accounts
Revenue Account updation
Go to FS00 Select the sales accounts
Click on change field
Click on create/bank/interest tab
Now change the field status group in to G029 (Revenue account)
Press enter key and Save
Click on edit cost elements tab
Cost elements - Sales Account
Valid from – 01-04-09 to 31-12-9999
Click on master data tab
Cost elements category – 11 (Revenues)
Press enter key and Save
Note: Just like we can update all Revenue accounts
Automatic Updating
Path: Spro → Img → Controlling → Cost elements accounting → Master data → Cost elements
→ Automatic creation of primary and Secondary cost elements
A) Make default settings (OKB2)
Chart of Accounts – CHAC
Account from Account to Cost elements category (CECT)
300001 400000 11 (Revenue)
400001 500000 1 (Primary cost)
Press enter key and Save
Come back
B) Create Batch input session (ORB3)
Controlling area – TACO
Valid from – 01-04-09 Valid to – 31-12-9999
Session name – Ubaid
Press F8 for execute
Come back twise

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C) Execute Batch input Session
Select your Session – Ubaid
Click on Process Tab
Select display errors only
Click on process
Click on session overview
Come back
Note: But generally we are not preferring the automatic updation
Display of Cost elements index (KA23)
Path: Sap easy access → Accounting → Controlling → Cost elements accounting → Information
system → Report for cost and Revenue elements Accounting → Master data index → Cost
elements master data report
Select All cost elements
Press f8 for execute
Cost center Accounting
Cost Centre Accounting
Cost centre is an organizational element within the controlling area. Cost centre accounting helps
to track the where the costs are incurred in your enterprises. All the cost elements like salary,
wages, rent, water charges etc incurred are either assigned or posted to a cost centre.
This cost centre accounting we are using for view the departmental wise cost
Cost Centre Category Creation (OKA2)
Cost centre category is an indicator in the Cost centre master record to identify what kind of
activities a particular cost centre will be performing.
Path: Spro → Img → controlling → Cost centre Accounting → Master data → Cost centre →
Define cost centre categories
Just check the categories and study the check box. No need to create own categories because
already various categories available. If you want you can do by clicking new entries
Creation of Cost Centre group (KSH1)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Master data
→ Cost centre group → Create
Cost centre group – TAST_CCTR
Click on Hierarchy (F6)
Click on Yes
TAST_CCTR – Cost centre group for TAST
Click on lower level tab

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→ Prod – Production Departments
Click on same level tab
→ Purc – Purchase departments
Click on same level tab
→ Sale – Sales Departments
Click on same level tab
Magm – Managements Departments
Click on same level tab
→ Admn – Administration departments
Click on same level tab
→ RanD – Research and Developments
Click on save
Come back wise
Creation of Cost Centre (KS01)
Create the following Cost centre under the Production Departments
Department – A
Department – B
Department – C
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Master data
→ Cost centres → Individual Processing → Create
Cost centres – Dep A
Valid from - 1-04-09 to 31-12-9999
Click on Master data tab
Name – Dep A
Description – Department A
Person responsible – UBAID
Cost centre category – 1 (Production)
Hierarchy area – Prod (Production Departments)
Business area – TAHY
Currency – INR
Press two times enter key and Save
Note: Just like we can create Departments B, C and Many more.
If you want to change Cost centre master data go to KS02
If you want to display the cost centre go to KS03
Display of Cost Centre Index (KS13)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information
system → Reports for Cost centre accounting → Master data index → Cost centre master data
reports

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Select all Cost centres
Press F8 for execute
CO Documents Number ranges Settings (KANK)
Path: Spro → Img → Controlling → General controlling → Organization → Maintain number
ranges fro controlling documents.
Controlling area – TACO
Click on group tab (F6)
Click on Controlling documents number ranges for TAMT
Select COIN CO Through Posting from FI
Click on elements group tab
Click on save
Come back wise
CO Documents Posting through FI
Go to F-02
Paid department A salary 10000 through bank on 30-04-09
Document date – 30-04-09 Type – SA Company code – TAST
Posting date - 30-04-09 Period – 01 Currency – INR
Docu header text – Salaries paid
Pstky – 40 Account – Salaries Account
Press enter key
Amount – 10000
Cost center – Departments A
Text – Salaries paid
Pstky – 50 Account – Bank Account
Amount - * Business area – TAHY
Text - +
Press enter key simulate the documents and SAVE
Note: Now you will get the FI Documents Number internally in CO system generate the
documents.
Display of CO Documents (KSB5)
Path: Sap easy access → Accounting → Controlling → Cost center accounting → Information
system → Reports for Cost center Accounting → Line items → CO Documents Actual Cost
Documents number - *
Layout – 1SAP (Primary cost posting)
Press f8 for execute and Check the documents details

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Display of Cost centre Reports (KSB1)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information
system → Reports for Cost centre Accounting → Line items → Cost centre actual line items
Cost centre – Dep A
Cost elements – Salaries Accounts
Posting date – 01-04-09 to 31-03-2010
Layout – 1SAP
Press F8 for execute
Planning of Cost Centre (KP06)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Planning →
Cost and Activity inputs → Change
Version - 0
From Period – 1 to period - 1
Fiscal year – 2009 / 2015
Cost centre – Dep A
Cost elements – Salaries Accounting
Select form based (We can change in future)
Press F5 for Overview the screen
Assign the 8000 in Plan fixed Cost column
Press enter key and Save
Actual / Plan Variants Reports (S_ALR_87013611)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information
system → Reports for Cost centre Accounting → Plan/ Actual Comparison →
S_ALR_87013611-Cost centre/ Plan/ Actual/ Variants
Controlling area – TAST
Fiscal year – 2009
From period - 1 to Period – 1
Plan Version – 0
Cost centre value – Dep A
Cost elements value – Salaries Accounts
Press F8 for execute
REPOSTCOLINE ITEMS
This repost CO line items we are using by the time of documents posting when we don’t know
where that cost was incurred

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Go to KS01 Create the Dummy Cost centres under production departments
CO Documents number range settings
Go to KANK
Controlling area – TACO
Click on Group tab (F6)
Select controlling documents number ranges
Double click on RKU3 Repost cost line items business transaction from not assigned Column
Click on elements/ Group tab
Click on Save
Go to FS00 Select Printing and stationary account and Update in to CO (Field status group –
G004 (Cost accounts)
Purchase printing and Stationary 10000 on 01-04-2009 through cash and this assigned to
Dummy Cost centres
Go to F-02 Post the following Documents
Printing and Stationary Account 10000
To Cash 10000
Note the FI documents number -19
Repost cost line item Procedures (KB61)
Now in this above documents Printing and Stationary at moth end we distribute the following
Cost centres
Dep A – 6000 Dep B – 3000 Dep C – 1000
Path: Sap easy access → Accounting → Controlling → Cost centre Accounting → Actual
Posting → Repost line item → Enter
Documents Number – 19 Company code - TAST Fiscal year – 2009
Cost elements – Printing and Stationary Account
Cost centre – DUMMY
Press F8 for execute
Double click on 10000
Click on header tab
Posting date – 30-4-2009 Document date – 30-04-2009
Click on Raw tab
New Account Assignment
Amount – 6000
Cost centre Dep A

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Press enter key
Amount – 3000
Cost centre Dep B
Press enter key
Amount – 1000
Cost centre Dep C
Press enter
key and Save
REPOSTCOST
This repost cost we are using when user assign the wrong cost centre
CO Documents Number ranges settings
Go to KANK
Controlling area – TACO
Click on group tab (F6)
Select control documents number ranges
Double click on RKU1 Repost cost business transaction from not assigned column
Click on elements/ group tab
Click on Save
Go to F-02 Post the following documents on 30-04-09 Assigned to department A cost centre
Salaries account 10000
To Bank account – 10000
Actually this cost was incurred on Dep B Cost centre but User wrongly assigned to Dep A Cost
centre.
Repost Cost Procedures (KB11N)
Path: Sap easy access → Accounting → Controlling → Cost centre Accounting → Actual
Posting → Manual reposting of cost → Enter
Documents date – 30-04-09 Posting date – 30-04-09
Period – 1 Documents text – Repost Cost
CCTR (old) Cost elements Amount CCTR (New)
Dep A Salaries Account 10000 Dep B
Press enter key and Save
STATISTICALKEYFIGURES
Statistical key figures is nothing but cost unit

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Cost Units
Salaries Number of employees
Telephone bill Number of tel bills
Electricity bill Number of unit
Rent Number of Sqft
Creation of statistical key figures (KK01)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Master data
→ Statistical key figures → Individual processing → Create
A) Statistical key figures – 100 (any)
Click on Master data tab
Name – Number of employees
Statistical key figures units – ea (each)
Key figures category – Select Fixed value (Number of employee will be same)
Press enter key and Save.
B) Statistical key figures – 200
Click on master data
Name – Number of Sqft
Statistical key figures – ea
Key figures category – Select fixed value
Press enter key and Save
C) Statistical key figures – 300
Click on master data
Name – Number of tel call unit
Statistical key figures – ea
Key figures category – Select total value (Call will be change in every year)
Press enter key and Save
D) Statistical key figures – 400
Click on master data
Name – Number of electricity unit
Statistical key figures – ea
Key figures category – Select total value (unit will be change in every year)
Press enter key and Save
The Phone bill posting with statistical key figures
Step1: Paid telephone bill 1000 through cash on 30-04-09 for 1000 telephone call
Step2: Go to FS00 select telephone bill account and update in to CO (Field Status – G004)
Step3: Go to F-02 Post the following documents for departments A on 30-04-09

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Telephone bill a/c
To Cash a/c
Define plan value for telephone bills (KP06)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Planning →
Cost and activity inputs → Change
Version – 0
From period – 1 To Period – 1
Fiscal year – 2009
Cost centre - Dep A
Cost elements – Telephone bill a/c
Select Form based
Press F5 for Overview screen
Assign 800 in Plan fixed cost column
Press enter key and Save
Statistical key figures posting
A) CO Documents number ranges settings
Go to KANK for number range settings
Controlling area – TACO
Click on maintain group tab
Click on controlling documents number ranges
Double click on RKS - Enter statistical Key figures business transaction from not assigned
column
Click on elements Group tab
Click on Save
Come back wise
B) Statistical key figures Posting procedures (KB31N)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Actual posting
→ Statistical Key figures → Enter
Document date – 30-04-09 Posting date – 30-04-09
Document header text – Telephone cost unit posting
Rec cct Statistical key fig Total Qty
Dept A 300 1000 (Calls)
Press enter key and Save
Planning value for statistical key figures ( KP46)
Path: easy access → Accounting → Controlling → Cost centre accounting → Planning →
Statistical key figures → Change
Version – 0

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From period – 1 To Period – 1
Fiscal year – 2009
Cost centre - Dep A
Statistical key figures - 300
Select Form based
Press F5 for Overview screen
Assign 800 in Current plan value column
Press enter key and Save
Reports (S_ALR_87013611)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Information
system → Reports for cost centre accounting → Plan/ Actual Comparison → Cost centre Actual/
plan/ Variants
Controlling area – TACO
Fiscal year – 2009
From period - 1 To Period – 1
Plan version - 0
Cost centre value – Dep A
Cost elements value – Telephone bill account
Press F8 for execute
MANNUAL COSTALLOCATION
Distribution and Assessments are the two important Manual cost allocation in SAP. This manual
cost we are using for allocating the primary cost and secondary cost from one cost centre to
another cost centre.
Go to KSB1 and check the cost centre value of Dep-A for salaries in the 1st period
Cost centre – Dep – A
Cost elements – Salaries
Posting date – 01-04-2009 To 30-04-09
Layout – 1SAP
Press f8 for execute
Now we can see cost centre value is 8000
Distribution
This distribution also we are using for allocate the primary cost from one cost centre to another
cost centre through a distribution cycle.
Step1: CO Documents number range settings for distribution
Go to KANK for number range settings
Controlling area – TACO

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Click on maintain group tab
Click on controlling documents number ranges
Double click on RKIV (Actual Overhead distribution) business transaction from not assigned
column
Double click on RKPV (Plan overhead distribution) business transaction from not assigned
column
Click on elements Group tab
Click on Save
Distribution Cycle Preparation (S_ALR_87005757)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Period end
Closing → Current settings → Define distribution
Cycle – Salary account
Start date – 01-04-09
Press enter key
Text – Salaries Distribution
Click on attach segments tab
Segments name – Salary – Salary distribution
Segment Header tab
Sender values
Sender rule - Posted amount
Share in % - 100
Select actual values
Receiver tracing factor tab
Receiver rule – Fixed percentage
Click on Sender/ Receiver tab
Senders
Cost centre – Dep –A
Cost elements – Salary Account
Receiver
Cost centre – Dep B Dep C
Click on Sender value tab
Version – 0
Receiver tracing factor
Percentage / Portion
Dep B 25
Dep C 25
Press enter key and Save
Come back three times
Click on yes
Distribution cycle run (KSV5)
Path: Sap easy access → Accounting → Controlling → Cost centre accounting → Period end
Closing → Single transactions → Allocation → Distribution

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Period – 1 to – 1
Fiscal year – 2008
Select test run
Select details list tab
Cycle – Salary
Press enter key
Press f8 for execute
Select Sender 1
Click on Sender tab (Shift+F4)
Come back
Now select number of receiver 2
Click on Receiver tab (Shift+F5)
Come back wise
Click on yes
Deactivate test run and again press f8