Managerial accounting

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Contents
COMMITMENT MANAGEMENTS............................................................................................. 4
Maintain Financial Management Area (OF01)........................................................................... 4
Assign Company code to FM area (OF18)................................................................................. 4
Assign Fiscal year Variant to FM area (OF32)........................................................................... 4
Assign field status variants to company code (FMUV).............................................................. 4
Commitment item creation (FMCIA) ......................................................................................... 5
Assign Commitment item to GL................................................................................................. 5
Commitment Item Posting (FMZ1) ............................................................................................ 5
Field Status group settings (OBC4) ............................................................................................ 5
Purchase Documents Posting...................................................................................................... 6
Display Fund Commitment Status (FMZ3)................................................................................ 6
PROFIT CENTER ACCOUNTING............................................................................................... 6
Set controlling area (OKKS)....................................................................................................... 6
Maintain Controlling area settings (0KE5)................................................................................. 6
Create Dummy profit Centre (KE59) ......................................................................................... 7
Set Control parameters for Actual data (1KEF) ......................................................................... 7
Maintain Plan Version (OKEQ).................................................................................................. 7
Define number range for local Documents (GB02).................................................................... 7
Creation of Profit Centre (KE51)................................................................................................ 8
Creation of Cost Centres............................................................................................................. 8
Revenue Elements Creation........................................................................................................ 9
Maintain automatic account assignments of Revenue elements (OKB9)................................... 9
Choose additional balance sheet and Profit and Loss account ................................................... 9
Choose Accounts (3KEH)........................................................................................................... 9
Account Group Creation (KDH1)............................................................................................. 10
Define Plan values for PL items (7KE1) .................................................................................. 10
Define Plan Value for Balance sheet items (7KE3).................................................................. 11
Actual Values Postings ............................................................................................................. 11
Revenue Postings.................................................................................................................. 11
Cost posting .......................................................................................................................... 12
Profit Centre PL Report (S_ALR_87013326) .......................................................................... 12

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Profit Centre wise Balance sheet (S_ALR_87013336) ........................................................ 12
PROFITABILITY ANALYSIS (CO-PA) .................................................................................... 13
Define operating concerns (KEA0) .......................................................................................... 14
Define profitability segments characteristics (KEQ3).............................................................. 14
Assign controlling area to operating concerns (KEKK)........................................................... 15
Determine number ranges for actual postings (KEN1)............................................................. 15
Maintain assignment of SD condition to CO-PA Value fields (KE4I)..................................... 15
Maintain PA Transfer structure for direct postings (KEI2)...................................................... 15
Activate profitability analysis (KEKE)..................................................................................... 16
Sales Order creation.................................................................................................................. 16
Creation of Sales Order......................................................................................................... 16
Goods Deliver........................................................................................................................... 17
Display of Documents............................................................................................................... 17
Billing (VF01)........................................................................................................................... 17
Billing Documents update in FI (VF02)................................................................................... 17
CO-PA Report Generation........................................................................................................ 18
Create Profitability Report........................................................................................................ 19
COMMITMENT MANAGEMENTS........................................................................................... 19
Maintain Financial Management Area (OF01)......................................................................... 19
Assign Company code to FM area (OF18)............................................................................... 20
Assign Fiscal year Variant to FM area (OF32)......................................................................... 20
Assign field status variants to company code (FMUV)............................................................ 20
Commitment item creation (FMCIA) ....................................................................................... 20
Assign Commitment item to GL............................................................................................... 20
Commitment Item Posting (FMZ1) .......................................................................................... 21
Field Status group settings (OBC4) .......................................................................................... 21
Purchase Documents Posting.................................................................................................... 21
Display Fund Commitment Status (FMZ3).............................................................................. 22
PROFIT CENTER ACCOUNTING............................................................................................. 22
Set controlling area (OKKS)..................................................................................................... 22
Maintain Controlling area settings (0KE5)............................................................................... 22
Create Dummy profit Centre (KE59) ....................................................................................... 22
Set Control parameters for Actual data (1KEF) ....................................................................... 23

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Maintain Plan Version (OKEQ)................................................................................................ 23
Define number range for local Documents (GB02).................................................................. 23
Creation of Profit Centre (KE51).............................................................................................. 24
Creation of Cost Centres........................................................................................................... 24
Revenue Elements Creation...................................................................................................... 24
Maintain automatic account assignments of Revenue elements (OKB9)................................. 24
Choose additional balance sheet and Profit and Loss account ................................................. 25
Choose Accounts (3KEH)......................................................................................................... 25
Account Group Creation (KDH1)............................................................................................. 25
Define Plan values for PL items (7KE1) .................................................................................. 26
Define Plan Value for Balance sheet items (7KE3).................................................................. 26
Actual Values Postings ............................................................................................................. 27
Revenue Postings.................................................................................................................. 27
Cost posting .......................................................................................................................... 27
Profit Centre PL Report (S_ALR_87013326) .......................................................................... 27
Profit Centre wise Balance sheet (S_ALR_87013336) ............................................................ 28
PROFITABILITY ANALYSIS (CO-PA) .................................................................................... 28
Define operating concerns (KEA0) .......................................................................................... 29
Define profitability segments characteristics (KEQ3).............................................................. 30
Assign controlling area to operating concerns (KEKK)........................................................... 30
Determine number ranges for actual postings (KEN1)............................................................. 30
Maintain assignment of SD condition to CO-PA Value fields (KE4I)..................................... 30
Maintain PA Transfer structure for direct postings (KEI2)...................................................... 31
Activate profitability analysis (KEKE)..................................................................................... 31
Sales Order creation.................................................................................................................. 31
Creation of Sales Order......................................................................................................... 31
Goods Deliver........................................................................................................................... 32
Display of Documents............................................................................................................... 32
Billing (VF01)........................................................................................................................... 32
Billing Documents update in FI (VF02)................................................................................... 33
CO-PA Report Generation........................................................................................................ 33
Create Profitability Report........................................................................................................ 34

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COMMITMENT MANAGEMENTS
In FI commitment refers to certain Commitment, Liabilities like the outstanding orders, open
purchase orders, bill liability etc. In CO the Commitment refers to the contractual or scheduled
commitments in CO production orders, Internal orders, Maintenance orders, Production orders,
Sales Orders, Network, Cost centres etc. that has not yet been passed on to FI but will result in
actual expenditure in the future.
Maintain Financial Management Area (OF01)
Path: Spro → Img → Enterprise structure → Definition → Financial Accounting → Maintain
Financial Management area
Click on new entries
FM Area FM Area text FM Area currency
FMGT Financial Management Area for TAST INR
Press enter key and Save
Note: The FM area Currency is need to be same with Currency assigned to the company code
Assign Company code to FM area (OF18)
Path: Spro → Img → Enterprise structure → Assignment → Financial Accounting → Assign
company code to FM area
Click on Position
Company code FM Area
TAST FMGT
Press enter key and Save
Assign Fiscal year Variant to FM area (OF32)
Path: Spro → Img → Public sector Management → Funds management government → Basic
setting → Fiscal year variant → Assign fiscal year variants to FM Area
Click on position
FM area Fiscal year variant
FMGT TE
Press enter key and Save
Assign field status variants to company code (FMUV)
Path: Spro → Img → Controlling → Cost centre Accounting → .Commitment and Fund
managements → Field control for fund managements → Assign filed status variant to company
code
Click on Position
Company code – TAST
Field Status variants – FMRE (earmarked fund status variants)
Press enter key and Save

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Commitment item creation (FMCIA)
Path: Sap easy access → Accounting → Public sector managements → Fund managements →
Master data → Account assignment elements → Commitment item → Individual Processing
FM Area – FMGT (tick mark)
Commitment item – 1000 (Any code)
Click on create field
Name – Purchase
Description – Purchases
Financial transaction – 30 (Revenue, Expenses, Asset, Inventory stock)
Commitment item category – 3
Press enter key and Save
Assign Commitment item to GL
Go to FS00 Select Purchases Account and click on change field
Click on create/ bank /interest tab
Commitment item – 1000
Press enter key Save
Commitment Item Posting (FMZ1)
Path: Sap easy access → Accounting → Controlling → Cost elements Accounting → Actual
Posting → Funds commitment → Create
Documents type – CO (CO fund commitment)
Document date – 31-04-09 Type – DR Company code – TAST
Posting date – 31-04-09 Period – 01 Currency – INR
Documents header text – Purchases
Original amount – 500000
Commitment item – 1000 (Purchase)
GL – Purchase account Business area – TAHY
Press enter key and Save
Note: Before going to posting the Commitment account update with Purchase account in to CO
Field Status group settings (OBC4)
Go to OBC4 Field status variants
Click on Position
Field status variants - FSTV
Now select your Field status variants
Double click on field status group
Double click on G004
Double click on Additional Assignment group
Keep Commitment item as Optional entry
Click on Page down key in keyboard
Keep Earmarked funds as Option entry

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Press enter and Save
Purchase Documents Posting
Purchase 100000 Goods from Vendor on 01.10.2009
Go to F-43 Post the documents
Document date – 31-04-09 Type – DR Company code – TAST
Posting date – 31-04-09 Period – 01 Currency – INR
Documents header text – Purchases
Postkey – 31 Account - Vendor Account
Amount – 100000
Text - Purchase
Postkey – 40 Account – Purchase Account
Amount- * Text - + Business area – TAHY
Click on More fields botton
Earmarked funds – Select Earmarked fund
Press enter key and Save
Display Fund Commitment Status (FMZ3)
Path: Sap easy access → Accounting → Controlling → Cost elements Accounting → Actual
Posting → Funds commitment → Display
Document Number – Give Document number
Press enter key
Click on Consumption tab
PROFIT CENTER ACCOUNTING
This profit centre Accounting we are using for view the profit of a particular product wise,
Product group wise, location wise etc. (If business area is not maintain in FI records/ Division
wise etc) At the same time you prepare the profit and loss account and Balance sheet.
Set controlling area (OKKS)
Path: Spro → Img → Controlling → Profit centre accounting → Basic settings → Set controlling
area
Controlling area – TACO
Click on save
Maintain Controlling area settings (0KE5)
Path: Same as up to basic settings → Controlling area settings → Maintain controlling area
settings
Standard hierarchy – TAST_PF (any)

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Profit centre local currency type – 20 (Controlling area currency)
Profit centre local currency – INR
Press enter key and Save
Comeback
Create Dummy profit Centre (KE59)
Path: Spro → Img → Controlling → Profit centre accounting → Master data → Profit centres →
Create Dummy profit centre
Double click on create Dummy profit centre
Dummy profit centre – Dummy
Click on basic data tab
Name – Dummy
Description – Dummy profit centre
Person reasonable – Ubaid
Profit centre group – TAST_PF
Press enter key and Save
Set Control parameters for Actual data (1KEF)
Path: Same as up to Profit centre accounting → Basic settings → Controlling area settings →
Activate direct posting → Set control parameters for actual data
Click on new entries
From year Line item Online transfer
2009 Tick mark Tick mark
Press enter key and Save
Come back wise
Maintain Plan Version (OKEQ)
Path: Same as up to activate direct posting → Plan version → Maintain plan version
Select 0 plan version
Double click on settings for profit centre accounting folder
Click on new entries
Year Online Transfer Line items Exchange rate type
2009 Tick mark Tick mark M
Press enter key and Save
Come back three times
Define number range for local Documents (GB02)
Path: Same as up to Profit centre accounting → Actual Posting → Basic settings actual →
Define number range for local documents

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Click on maintain group tab (F6)
Activate click on Actual documents from direct posting check box
Go to Intervals in Menubar → Select Maintain
Company code – TAST (tick mark)
Click on insert Intervals
Year From number To number
2009 1 10000
Press enter key and Save
Comeback
Activate click planned documents from direct posting check box
Go to intervals in Menubar → Select maintain
Company code – TAST (Tick mark)
Click on insert intervals
Year From number To Number
2009 100001 200000
Press enter key and Save
Come back three times
Creation of Profit Centre (KE51)
Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Master data
→ Profit centre → Individual Processing → Create
Profit centre – Steel (Product wise)
Click on Master data tab
Analysis period – 01-04-09 To 31-12-9999
Name – Steel
Long text – Steel
Person responsible – Ubaid
Profit centre group – TAST_PF
Press enter key
Click on Activate Field (No need for Save)
Creation of Cost Centres
For profit centre directly we post revenues values but its not possible to post cost values. If you
want to post cost values for profit centres we create a cost centre in cost centre accounting
through this cost centre we are posting cost.
Go to KS01 Create cost centre Steel under Production departments
Cost centre – Steel
Valid from – 01-04-09 To – 31-12-9999
Click on Master data tab
Name – Steel
Description – Steel
Person responsible – Ubaid

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Cost centre Category – 01
Hierarchy area – Prod
Business area – THAY
Currency – INR
Profit Centre – Steel
Press enter key and Save
Revenue Elements Creation
Go to FS00 Create the Sales of Steel account under the incomes with field status group G029 and
Update the account in to CO. Cost elements category – 11
Maintain automatic account assignments of Revenue elements (OKB9)
There we assign what are the revenue we are posting to profit centre those elements we are
assigning here.
Path: Spro → Img → Controlling → Profit centre accounting → Actual posting → Maintain
automatic account assignments of revenue elements.
Click on new entries
Company code Cost elements Account assignments details
TAST Sales of Steels a/c 2 (business area is mandatory)
Select your Company code
Double click on Details per business area
Click on new entries
Business area Profit centre
TAHY Steel
Press enter key and Save
Comeback four times
Choose additional balance sheet and Profit and Loss account
Path: Same
Choose Accounts (3KEH)
Click on new entries
Account from Account to Profit centre
100001 300000 Steel
Press enter key and Save
Click on Profit centre Deter: Details tab
Click on create field (F5)
Description – Profit centre balance sheet business area wise
Source field
GSBER – Business area
Click on maintain rule values tab
Click on yes

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Click ON/OF tab
Account Number To Account Numb Business area Profit centre
100001 300000 TAHY Steel
Press enter key and Save
Come back four times
Account Group Creation (KDH1)
Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Master data
→ Account group → Create
A) Acct Group – PL-Items
Click on Hierarchy field (F6)
PL Items – Profit and Loss items
Click on Account tab
PL Items – Profit and Loss Items
→ 300001 - 500000
Press enter key and Save
Come back three times
B) Acct Group – BS_Items
Click on Hierarchy Field (F6)
BS_items – Balance sheet items
Click on Account tab
BS-items
→ 100001 - 300000
Press enter key and Save
Comeback wise
Define Plan values for PL items (7KE1)
Path: Sap easy access → Accounting → Controlling → Profit centre Accounting → Planning →
Cost/ Revenues → Change
Version – 0
From period - 12 To – 12
Fiscal year – 2009
Company code – TAST
Profit centre – Steel
Account Group – PL items
Select form based
Press F5 for Overview the screen
Account Numb Text Reporting Currency
3000014 Sale of Steel a/c 80000
400005 Salaries a/c 8000
Press enter key and Save

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Note: Like we can assign the plan value of every PL items
Define Plan Value for Balance sheet items (7KE3)
Path: Sap easy access → Accounting → Controlling → Profit centre Accounting → Planning →
Balance sheet accounts → Change
Version – 0
From period - 12 To – 12
Fiscal year – 2009
Company code – TAST
Profit centre – Steel
Account Group – BS_ items
Select form based
Press F5 for Overview the screen
Account Numb Text Reporting Currency
100009 SBI Loan a/c 100000
200008 SBI Account a/c 100000
Press enter key and Save
Note: Like we can assign the plan value of every BS items
Actual Values Postings
Revenue Postings
Go to F-22 Post customer invoice with 100000 on 31-04-09
Customer Account
To Sales of Steel a/c
Document date – 31-04-09 Type – DR Company code – TAST
Posting date – 31-04-09 Period – 01 Currency – INR
Documents header text – Customer invoice posting
Postkey – 01 Account – Customer Account
Press enter key
Amount – 100000 Business area – TAHY
Text – Customer invoice posting
Post key – 50 Account – Sale of Steel account
Press enter key
Amount - *
Text - + Business area – TAHY
Press enter key Simulate and Save

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Cost posting
Go to F-02 post the following Documents on 31-04-09 and Assign the Steel cost centre
Salaries account 10000
To Cash 10000
Profit Centre PL Report (S_ALR_87013326)
Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Information
systems → Reports for Profit centre accounting → Interactive Reporting → Profit centre group:
Plan/Actual/Variance
From Period – 12
To period – 12
Fiscal year – 2009
Plan version – 0
Profit centre values – Steel
Profit + Loss Values – Click on the arrow Mark in front of the P+L values
Assign Single value column
300014
400005
Press F8 for execute
Profit Centre wise Balance sheet (S_ALR_87013336)
Path: Same as up to Interactive Reporting → Profit centre group: Profit centre group: Balance
sheet account Plan/Actual/Variance
From Period – 12
To period – 12
Fiscal year – 2009
Plan version – 0
Profit Centre Value – Steel
Click on the (Arrow mark) in front of the Balance sheet value
Assign
10009
20007
Press F8 for copy and press F8 for execute

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PROFITABILITY ANALYSIS (CO-PA)
What is the functionality of a PA Module?
PA Module is the most important when it comes to analysis the result of the organization.
In this module we basically collect the revenues from the sales order cost from production order,
cost centre, internal orders and analysis there results.
The interesting part about this module is that when it collecting the cost and revenue at the same
times it also collect the characteristics associated with the cost and revenue
Using PA Module we can find out the following things…
1- Profit of a certain product
2- Profit of a certain products in certain region
3- Profit of a certain products in certain region by certain customers
4- Profit of certain products in certain region by certain sales person that mean we can view
the products for the number of parameters at a time
What is mean by operating concerns?
The operating concern is the highest module in profitability analysis. The operating concern is
assigned to controlling area with in the operating concerns all the transaction of profitability
analysis are started.
What are the characteristics and value fields?
Value fields
In the operating concern there are two things are basically defined
a) Characteristics
b) Value fields
Characteristics
Characteristics are nothing but those accepts on which we want to breakdown the profit
classically surcharge, region, products, product z, sales person etc.
Value fields
Values fields are nothing but the values are associated with this characteristics.
Once we defined the characteristics and values are updated in the table..
Once we have capture the all cost and revenues how do u analyses them?
By analyses the report writes using the report writer functionality in SAP.

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Define operating concerns (KEA0)
Path: Spro → Img → Controlling → Profitability analysis → Structure → Define operating
concern → Maintain operating concerns
Operating concern – TAST (Any code)
Click on Create fields
Description – Operating concerns for TAST
Select costing-based
Select Account-based
Click on Attributes tab
Operating concern currency – INR
Company code currency – (Tick mark)
Fiscal year variants – V3 (Standards)
Press enter key and Save.
Click on Data structure tab
Click on create filed under data structure tab
Select KMVTNR – Sales employee characteristics from transfer from column tab and click on
left tab
Click on value fields tab
Select VV010 – Revenue, VV140 – Cost of goods sold value fields from copy from column
select click on left arrow
Now go to Data structure in Menubar → Select Save
Now again go to Data structure in Menubar select Active
Comeback and click on yes
Ignore the warning messages
Comeback
Define profitability segments characteristics (KEQ3)
Path: Same
Characteristics Description Costbased+Acc
ARTNR Products Select radio botton
KNDNR Customer Select radio botton
Press enter key and Save
Comeback

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Assign controlling area to operating concerns (KEKK)
Path: Spro → Img → Enterprise structure → Assignments → Controlling → Assign controlling
area to operating concerns
Click on position
Controlling area – TACO (Tick mark)
Operating concern – TAST
Press enter key and Save
Comeback
Determine number ranges for actual postings (KEN1)
Path: Spro → Img → Controlling → Profitability analysis → Flow of actual values → Initial
steps → Define number ranges for actual postings
Operating concern – TAST
Click on maintain group
Click on generated group check box (Tick mark)
Go to interval in Menubar → Maintain
Here system generates some default number you can use this or create new
Click on Save
Comeback three times
Maintain assignment of SD condition to CO-PA Value fields (KE4I)
Path: Spro → Img → Controlling → Profitability analysis → Flow of actual values → Transfer
of billings documents → Assign value fields
Double click on Maintain assignments of SD Condition to CO-PA Value fields
Click on new entries
Condition type Value fields
PR00 VV010 (500)
VPRS (Cost of goods sold) VV140 (400)
Press enter key and Save
Comeback twise
Maintain PA Transfer structure for direct postings (KEI2)
Path: Same as up to flow of actual values → Direct postings from FI/MM → Maintain PA
transfer structure for direct postings
Select FI (Financial account to CO-PA)
Double click on Assignments line folder
Select 20 – direct revenues from FI
Double click on Source folder
From – 300001 - 400000

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Double click on value fields folder
Click on new entries
Quanty / Value Fixed indi Value fields
1 Value fields 1 VV010 (Revenues)
Press enter key and Save
Double click on Assignments lines
Select 10 – Direct cost from FI
Double click on source folder
From – 400001 - 500000
Double click on value fields folder
Click on new entries
Quanty / Value Fixed indi Value fields
1 Value fields 1 VV140
Press enter key and Save
Comeback four times
Activate profitability analysis (KEKE)
Path: Same as up to flow of actual values → Activate-profitability analysis
Click on position
Controlling area – TACO (Tick mark)
Activate status
4 – Components active for both type of PA
Press enter key and Save.
Sales Order creation
Creation of Sales Order
Path: Sap easy access → Logistics → Sales and Distribution → Sales → Order → Create
(VA01)
Order type – OR
Sales organization – TASO
Distribution channel – DR
Division – ST
Press enter key
Sold to party – Customer account
PO Number – 0001 (any)
Reg delivery date – 02-04-2009
Delivery plant – TAPL
Payments terms – 0001
Item Material Order Qty
10 TAF8MC 1
Press two times enter key
Select item 10

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Select go to in Menu bar → Item → Condition
Check the values and Tax
Click on shipping tab
Check the shipping point
Note the sales order number 11800
Goods Deliver
Path: Same as up to Order → Subsequent function→ Outbound delivery (VL0IN)
Shipping point – TASP
Date – Current date
Order – 11800
Press enter key
Select 10
Click on Picking tab
Assign 1 in the Picked quantity column
Click on Post Goods issue tab
Note the delivery documents number – 80015001
Display of Documents
Now Go to Outbound delivery in Menu bar → Display
Outbound delivery – 80015001
Press enter key
Click on Documents flow field (F7)
Select Goods issue
Click on display documents tab
Click on Accounting Documents tab
Double click on Accounting Documents
Billing (VF01)
Path: Same
Documents
Delivery documents number – 80015001
Click on Save
Note the billing documents number – 90036105
Billing Documents update in FI (VF02)
Go to VF02 for the change billing documents
Billing documents – 90036105
Click on flow field (Release to Ac)

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CO-PA Report Generation
Path: Spro → Img → Controlling → Profitability analysis → Information system → Report
components → Define forms → Define forms for profitability report (KE34)
Double click on create forms
Form – TAST (Any) from from copa
Click on create fields
Select Operating concern currency (Tick mark)
Double click on Row 1
Select value fields with characteristics (Tick mark)
Value fields – Revenue
Click on confirm
Double click on Row 2
Select value fields with characteristics (Tick mark)
Value fields – Cost of goods sold
Click on confirm
Double click on Row 3
Select Formula (Tick mark)
Click on Y001 – Revenue
Click on
Click onY002 – Cost of goods sold
Short – Net profit
Click on copy short text (Tick mark)
Double click on column 1
Select characteristics (Tick mark)
Select plant / Actual indicator
Click on ←
From
Assign 0 (Actual data)
Click on confirm
Click on Save
Now go to editing in Menubar → General data selection → General data selection
Select record type, period / year
Click on ←
From To
For record type select from column B F
Period / year click on variable ON/OF Check box in from column
Local variable – 1 (Tick mark)
Click on variable ON/OF Check box in to Column
Local variable – 2 (Tick mark)
Click on confirm
Now go to extras in Menubar → Variable → Variable definition
Description
-

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1 – From period
2 - To period / Year (Tick mark)
Press enter and Save
Comeback wise
Create Profitability Report
Path: Same
Double click on create
Report - TAST COPA Report
Select Report with forms – TAST
Click on Create fields
Select Customers, Distribution, Channel, Division, Plant, Sales organization, Product
Click on ←
Click on Output type tab
Select Classical drilldown
Select Available on selection screen
Click on Save (Tick mark)
Press F8 for execute
From Period/ year - 01-2009
To Period/ Year – 12-2009
Press F8 for execute
COMMITMENT MANAGEMENTS
In FI commitment refers to certain Commitment, Liabilities like the outstanding orders, open
purchase orders, bill liability etc. In CO the Commitment refers to the contractual or scheduled
commitments in CO production orders, Internal orders, Maintenance orders, Production orders,
Sales Orders, Network, Cost centres etc. that has not yet been passed on to FI but will result in
actual expenditure in the future.
Maintain Financial Management Area (OF01)
Path: Spro → Img → Enterprise structure → Definition → Financial Accounting → Maintain
Financial Management area
Click on new entries
FM Area FM Area text FM Area currency
FMGT Financial Management Area for TAST INR
Press enter key and Save
Note: The FM area Currency is need to be same with Currency assigned to the company code

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Assign Company code to FM area (OF18)
Path: Spro → Img → Enterprise structure → Assignment → Financial Accounting → Assign
company code to FM area
Click on Position
Company code FM Area
TAST FMGT
Press enter key and Save
Assign Fiscal year Variant to FM area (OF32)
Path: Spro → Img → Public sector Management → Funds management government → Basic
setting → Fiscal year variant → Assign fiscal year variants to FM Area
Click on position
FM area Fiscal year variant
FMGT TE
Press enter key and Save
Assign field status variants to company code (FMUV)
Path: Spro → Img → Controlling → Cost centre Accounting → .Commitment and Fund
managements → Field control for fund managements → Assign filed status variant to company
code
Click on Position
Company code – TAST
Field Status variants – FMRE (earmarked fund status variants)
Press enter key and Save
Commitment item creation (FMCIA)
Path: Sap easy access → Accounting → Public sector managements → Fund managements →
Master data → Account assignment elements → Commitment item → Individual Processing
FM Area – FMGT (tick mark)
Commitment item – 1000 (Any code)
Click on create field
Name – Purchase
Description – Purchases
Financial transaction – 30 (Revenue, Expenses, Asset, Inventory stock)
Commitment item category – 3
Press enter key and Save
Assign Commitment item to GL
Go to FS00 Select Purchases Account and click on change field
Click on create/ bank /interest tab
Commitment item – 1000
Press enter key Save

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Commitment Item Posting (FMZ1)
Path: Sap easy access → Accounting → Controlling → Cost elements Accounting → Actual
Posting → Funds commitment → Create
Documents type – CO (CO fund commitment)
Document date – 31-04-09 Type – DR Company code – TAST
Posting date – 31-04-09 Period – 01 Currency – INR
Documents header text – Purchases
Original amount – 500000
Commitment item – 1000 (Purchase)
GL – Purchase account Business area – TAHY
Press enter key and Save
Note: Before going to posting the Commitment account update with Purchase account in to CO
Field Status group settings (OBC4)
Go to OBC4 Field status variants
Click on Position
Field status variants - FSTV
Now select your Field status variants
Double click on field status group
Double click on G004
Double click on Additional Assignment group
Keep Commitment item as Optional entry
Click on Page down key in keyboard
Keep Earmarked funds as Option entry
Press enter and Save
Purchase Documents Posting
Purchase 100000 Goods from Vendor on 01.10.2009
Go to F-43 Post the documents
Document date – 31-04-09 Type – DR Company code – TAST
Posting date – 31-04-09 Period – 01 Currency – INR
Documents header text – Purchases
Postkey – 31 Account - Vendor Account
Amount – 100000
Text - Purchase
Postkey – 40 Account – Purchase Account
Amount- * Text - + Business area – TAHY
Click on More fields botton
Earmarked funds – Select Earmarked fund
Press enter key and Save

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Display Fund Commitment Status (FMZ3)
Path: Sap easy access → Accounting → Controlling → Cost elements Accounting → Actual
Posting → Funds commitment → Display
Document Number – Give Document number
Press enter key
Click on Consumption tab
PROFIT CENTER ACCOUNTING
This profit centre Accounting we are using for view the profit of a particular product wise,
Product group wise, location wise etc. (If business area is not maintain in FI records/ Division
wise etc) At the same time you prepare the profit and loss account and Balance sheet.
Set controlling area (OKKS)
Path: Spro → Img → Controlling → Profit centre accounting → Basic settings → Set controlling
area
Controlling area – TACO
Click on save
Maintain Controlling area settings (0KE5)
Path: Same as up to basic settings → Controlling area settings → Maintain controlling area
settings
Standard hierarchy – TAST_PF (any)
Profit centre local currency type – 20 (Controlling area currency)
Profit centre local currency – INR
Press enter key and Save
Comeback
Create Dummy profit Centre (KE59)
Path: Spro → Img → Controlling → Profit centre accounting → Master data → Profit centres →
Create Dummy profit centre
Double click on create Dummy profit centre
Dummy profit centre – Dummy
Click on basic data tab
Name – Dummy
Description – Dummy profit centre
Person reasonable – Ubaid
Profit centre group – TAST_PF
Press enter key and Save

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Set Control parameters for Actual data (1KEF)
Path: Same as up to Profit centre accounting → Basic settings → Controlling area settings →
Activate direct posting → Set control parameters for actual data
Click on new entries
From year Line item Online transfer
2009 Tick mark Tick mark
Press enter key and Save
Come back wise
Maintain Plan Version (OKEQ)
Path: Same as up to activate direct posting → Plan version → Maintain plan version
Select 0 plan version
Double click on settings for profit centre accounting folder
Click on new entries
Year Online Transfer Line items Exchange rate type
2009 Tick mark Tick mark M
Press enter key and Save
Come back three times
Define number range for local Documents (GB02)
Path: Same as up to Profit centre accounting → Actual Posting → Basic settings actual →
Define number range for local documents
Click on maintain group tab (F6)
Activate click on Actual documents from direct posting check box
Go to Intervals in Menubar → Select Maintain
Company code – TAST (tick mark)
Click on insert Intervals
Year From number To number
2009 1 10000
Press enter key and Save
Comeback
Activate click planned documents from direct posting check box
Go to intervals in Menubar → Select maintain
Company code – TAST (Tick mark)
Click on insert intervals
Year From number To Number
2009 100001 200000
Press enter key and Save
Come back three times

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Creation of Profit Centre (KE51)
Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Master data
→ Profit centre → Individual Processing → Create
Profit centre – Steel (Product wise)
Click on Master data tab
Analysis period – 01-04-09 To 31-12-9999
Name – Steel
Long text – Steel
Person responsible – Ubaid
Profit centre group – TAST_PF
Press enter key
Click on Activate Field (No need for Save)
Creation of Cost Centres
For profit centre directly we post revenues values but its not possible to post cost values. If you
want to post cost values for profit centres we create a cost centre in cost centre accounting
through this cost centre we are posting cost.
Go to KS01 Create cost centre Steel under Production departments
Cost centre – Steel
Valid from – 01-04-09 To – 31-12-9999
Click on Master data tab
Name – Steel
Description – Steel
Person responsible – Ubaid
Cost centre Category – 01
Hierarchy area – Prod
Business area – THAY
Currency – INR
Profit Centre – Steel
Press enter key and Save
Revenue Elements Creation
Go to FS00 Create the Sales of Steel account under the incomes with field status group G029 and
Update the account in to CO. Cost elements category – 11
Maintain automatic account assignments of Revenue elements (OKB9)
There we assign what are the revenue we are posting to profit centre those elements we are
assigning here.
Path: Spro → Img → Controlling → Profit centre accounting → Actual posting → Maintain
automatic account assignments of revenue elements.

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Click on new entries
Company code Cost elements Account assignments details
TAST Sales of Steels a/c 2 (business area is mandatory)
Select your Company code
Double click on Details per business area
Click on new entries
Business area Profit centre
TAHY Steel
Press enter key and Save
Comeback four times
Choose additional balance sheet and Profit and Loss account
Path: Same
Choose Accounts (3KEH)
Click on new entries
Account from Account to Profit centre
100001 300000 Steel
Press enter key and Save
Click on Profit centre Deter: Details tab
Click on create field (F5)
Description – Profit centre balance sheet business area wise
Source field
GSBER – Business area
Click on maintain rule values tab
Click on yes
Click ON/OF tab
Account Number To Account Numb Business area Profit centre
100001 300000 TAHY Steel
Press enter key and Save
Come back four times
Account Group Creation (KDH1)
Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Master data
→ Account group → Create
A) Acct Group – PL-Items
Click on Hierarchy field (F6)
PL Items – Profit and Loss items
Click on Account tab
PL Items – Profit and Loss Items
→ 300001 - 500000
Press enter key and Save
Come back three times

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B) Acct Group – BS_Items
Click on Hierarchy Field (F6)
BS_items – Balance sheet items
Click on Account tab
BS-items
→ 100001 - 300000
Press enter key and Save
Comeback wise
Define Plan values for PL items (7KE1)
Path: Sap easy access → Accounting → Controlling → Profit centre Accounting → Planning →
Cost/ Revenues → Change
Version – 0
From period - 12 To – 12
Fiscal year – 2009
Company code – TAST
Profit centre – Steel
Account Group – PL items
Select form based
Press F5 for Overview the screen
Account Numb Text Reporting Currency
3000014 Sale of Steel a/c 80000
400005 Salaries a/c 8000
Press enter key and Save
Note: Like we can assign the plan value of every PL items
Define Plan Value for Balance sheet items (7KE3)
Path: Sap easy access → Accounting → Controlling → Profit centre Accounting → Planning →
Balance sheet accounts → Change
Version – 0
From period - 12 To – 12
Fiscal year – 2009
Company code – TAST
Profit centre – Steel
Account Group – BS_ items
Select form based
Press F5 for Overview the screen
Account Numb Text Reporting Currency
100009 SBI Loan a/c 100000
200008 SBI Account a/c 100000
Press enter key and Save
Note: Like we can assign the plan value of every BS items

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Actual Values Postings
Revenue Postings
Go to F-22 Post customer invoice with 100000 on 31-04-09
Customer Account
To Sales of Steel a/c
Document date – 31-04-09 Type – DR Company code – TAST
Posting date – 31-04-09 Period – 01 Currency – INR
Documents header text – Customer invoice posting
Postkey – 01 Account – Customer Account
Press enter key
Amount – 100000 Business area – TAHY
Text – Customer invoice posting
Post key – 50 Account – Sale of Steel account
Press enter key
Amount - *
Text - + Business area – TAHY
Press enter key Simulate and Save
Cost posting
Go to F-02 post the following Documents on 31-04-09 and Assign the Steel cost centre
Salaries account 10000
To Cash 10000
Profit Centre PL Report (S_ALR_87013326)
Path: Sap easy access → Accounting → Controlling → Profit centre accounting → Information
systems → Reports for Profit centre accounting → Interactive Reporting → Profit centre group:
Plan/Actual/Variance
From Period – 12
To period – 12
Fiscal year – 2009
Plan version – 0
Profit centre values – Steel
Profit + Loss Values – Click on the arrow Mark in front of the P+L values
Assign Single value column
300014
400005
Press F8 for execute

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Profit Centre wise Balance sheet (S_ALR_87013336)
Path: Same as up to Interactive Reporting → Profit centre group: Profit centre group: Balance
sheet account Plan/Actual/Variance
From Period – 12
To period – 12
Fiscal year – 2009
Plan version – 0
Profit Centre Value – Steel
Click on the (Arrow mark) in front of the Balance sheet value
Assign
10009
20007
Press F8 for copy and press F8 for execute
PROFITABILITY ANALYSIS (CO-PA)
What is the functionality of a PA Module?
PA Module is the most important when it comes to analysis the result of the organization.
In this module we basically collect the revenues from the sales order cost from production order,
cost centre, internal orders and analysis there results.
The interesting part about this module is that when it collecting the cost and revenue at the same
times it also collect the characteristics associated with the cost and revenue
Using PA Module we can find out the following things…
5- Profit of a certain product
6- Profit of a certain products in certain region
7- Profit of a certain products in certain region by certain customers
8- Profit of certain products in certain region by certain sales person that mean we can view
the products for the number of parameters at a time
What is mean by operating concerns?
The operating concern is the highest module in profitability analysis. The operating concern is
assigned to controlling area with in the operating concerns all the transaction of profitability
analysis are started.
What are the characteristics and value fields?
Value fields
In the operating concern there are two things are basically defined

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c) Characteristics
d) Value fields
Characteristics
Characteristics are nothing but those accepts on which we want to breakdown the profit
classically surcharge, region, products, product z, sales person etc.
Value fields
Values fields are nothing but the values are associated with this characteristics.
Once we defined the characteristics and values are updated in the table..
Once we have capture the all cost and revenues how do u analyses them?
By analyses the report writes using the report writer functionality in SAP.
Define operating concerns (KEA0)
Path: Spro → Img → Controlling → Profitability analysis → Structure → Define operating
concern → Maintain operating concerns
Operating concern – TAST (Any code)
Click on Create fields
Description – Operating concerns for TAST
Select costing-based
Select Account-based
Click on Attributes tab
Operating concern currency – INR
Company code currency – (Tick mark)
Fiscal year variants – V3 (Standards)
Press enter key and Save.
Click on Data structure tab
Click on create filed under data structure tab
Select KMVTNR – Sales employee characteristics from transfer from column tab and click on
left tab
Click on value fields tab
Select VV010 – Revenue, VV140 – Cost of goods sold value fields from copy from column
select click on left arrow
Now go to Data structure in Menubar → Select Save
Now again go to Data structure in Menubar select Active
Comeback and click on yes
Ignore the warning messages
Comeback

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Define profitability segments characteristics (KEQ3)
Path: Same
Characteristics Description Costbased+Acc
ARTNR Products Select radio botton
KNDNR Customer Select radio botton
Press enter key and Save
Comeback
Assign controlling area to operating concerns (KEKK)
Path: Spro → Img → Enterprise structure → Assignments → Controlling → Assign controlling
area to operating concerns
Click on position
Controlling area – TACO (Tick mark)
Operating concern – TAST
Press enter key and Save
Comeback
Determine number ranges for actual postings (KEN1)
Path: Spro → Img → Controlling → Profitability analysis → Flow of actual values → Initial
steps → Define number ranges for actual postings
Operating concern – TAST
Click on maintain group
Click on generated group check box (Tick mark)
Go to interval in Menubar → Maintain
Here system generates some default number you can use this or create new
Click on Save
Comeback three times
Maintain assignment of SD condition to CO-PA Value fields (KE4I)
Path: Spro → Img → Controlling → Profitability analysis → Flow of actual values → Transfer
of billings documents → Assign value fields
Double click on Maintain assignments of SD Condition to CO-PA Value fields
Click on new entries
Condition type Value fields
PR00 VV010 (500)
VPRS (Cost of goods sold) VV140 (400)
Press enter key and Save
Comeback twise

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Maintain PA Transfer structure for direct postings (KEI2)
Path: Same as up to flow of actual values → Direct postings from FI/MM → Maintain PA
transfer structure for direct postings
Select FI (Financial account to CO-PA)
Double click on Assignments line folder
Select 20 – direct revenues from FI
Double click on Source folder
From – 300001 - 400000
Double click on value fields folder
Click on new entries
Quanty / Value Fixed indi Value fields
1 Value fields 1 VV010 (Revenues)
Press enter key and Save
Double click on Assignments lines
Select 10 – Direct cost from FI
Double click on source folder
From – 400001 - 500000
Double click on value fields folder
Click on new entries
Quanty / Value Fixed indi Value fields
1 Value fields 1 VV140
Press enter key and Save
Comeback four times
Activate profitability analysis (KEKE)
Path: Same as up to flow of actual values → Activate-profitability analysis
Click on position
Controlling area – TACO (Tick mark)
Activate status
4 – Components active for both type of PA
Press enter key and Save.
Sales Order creation
Creation of Sales Order
Path: Sap easy access → Logistics → Sales and Distribution → Sales → Order → Create
(VA01)
Order type – OR
Sales organization – TASO
Distribution channel – DR
Division – ST

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Press enter key
Sold to party – Customer account
PO Number – 0001 (any)
Reg delivery date – 02-04-2009
Delivery plant – TAPL
Payments terms – 0001
Item Material Order Qty
10 TAF8MC 1
Press two times enter key
Select item 10
Select go to in Menu bar → Item → Condition
Check the values and Tax
Click on shipping tab
Check the shipping point
Note the sales order number 11800
Goods Deliver
Path: Same as up to Order → Subsequent function→ Outbound delivery (VL0IN)
Shipping point – TASP
Date – Current date
Order – 11800
Press enter key
Select 10
Click on Picking tab
Assign 1 in the Picked quantity column
Click on Post Goods issue tab
Note the delivery documents number – 80015001
Display of Documents
Now Go to Outbound delivery in Menu bar → Display
Outbound delivery – 80015001
Press enter key
Click on Documents flow field (F7)
Select Goods issue
Click on display documents tab
Click on Accounting Documents tab
Double click on Accounting Documents
Billing (VF01)
Path: Same
Documents
Delivery documents number – 80015001
Click on Save

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Note the billing documents number – 90036105
Billing Documents update in FI (VF02)
Go to VF02 for the change billing documents
Billing documents – 90036105
Click on flow field (Release to Ac)
CO-PA Report Generation
Path: Spro → Img → Controlling → Profitability analysis → Information system → Report
components → Define forms → Define forms for profitability report (KE34)
Double click on create forms
Form – TAST (Any) from from copa
Click on create fields
Select Operating concern currency (Tick mark)
Double click on Row 1
Select value fields with characteristics (Tick mark)
Value fields – Revenue
Click on confirm
Double click on Row 2
Select value fields with characteristics (Tick mark)
Value fields – Cost of goods sold
Click on confirm
Double click on Row 3
Select Formula (Tick mark)
Click on Y001 – Revenue
Click on
Click onY002 – Cost of goods sold
Short – Net profit
Click on copy short text (Tick mark)
Double click on column 1
Select characteristics (Tick mark)
Select plant / Actual indicator
Click on ←
From
Assign 0 (Actual data)
Click on confirm
Click on Save
Now go to editing in Menubar → General data selection → General data selection
Select record type, period / year
Click on ←
From To
For record type select from column B F
-

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Period / year click on variable ON/OF Check box in from column
Local variable – 1 (Tick mark)
Click on variable ON/OF Check box in to Column
Local variable – 2 (Tick mark)
Click on confirm
Now go to extras in Menubar → Variable → Variable definition
Description
1 – From period
2 - To period / Year (Tick mark)
Press enter and Save
Comeback wise
Create Profitability Report
Path: Same
Double click on create
Report - TAST COPA Report
Select Report with forms – TAST
Click on Create fields
Select Customers, Distribution, Channel, Division, Plant, Sales organization, Product
Click on ←
Click on Output type tab
Select Classical drilldown
Select Available on selection screen
Click on Save (Tick mark)
Press F8 for execute
From Period/ year - 01-2009
To Period/ Year – 12-2009
Press F8 for execute