sap-co-all conf. excl cin

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SAP CO NOTES

INDEX

PARTICULARS Page No. CO Areas and Basic Settings for Controlling 3 Cost Center Accounting 11 Online Reconciliation Leger 23 1. Creation of GL Masters 2. CO Customization 3. FI Customization

25 27 28

Cross Company Code Postings 31 Maintain Overhead structure 34 Statically Key Figures (SKF) 38 Assessment 42 Internal Orders 46 Budgeting and Availability Control 60 Profit Center Accounting 64 Integration 76

1. Transaction Key /Process Key 2. Valuation Class 3. Assignment of accounts 4. MM Customization 5. FI Consultant job in MM 6. Assignment of Accounts for Automatic Postings(MM

to FI) 7. FI Consultant job in SD 8. SD Steps 9.

77 78 89 90 97

100

115

Co-Profitability Analysis (CO-PA) 1. Data flow in CO-PA 2. Customization 3. SD End user area

120 120 122 126

Report Painter 129 Product Costing 132

1. Co Consultant Job (Activity based costing) 2. PP Consultant job 3. CO End User area 4. MM End User area 5. PP End user area

134 144 146 147 149

Actual Costing 153 1. CO Consultant job 2. PP consultant area 3. Asset Accounting area

153 167 174

New General Ledgers (ECC 6 New Features ) 179

2

1. Customization 2. Document Splitting

180 188

Central Excise and Sales Tax 1. Central Excise Customization (Purchase) 2. Central Excise customization (Sales) 3. SD End user area

192 195 211 217

Financial Statement Version 228 Asset Accounting Area 237 Project Report 238

CONTROLLING (CO)

This is used for internal reporting in Co organizational Hierarchy Highest node is controlling area. In FI Highest node is company , Company code

CO 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 Elements

2. 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 order

4. Profit center accounting : This is used to view profitability product wise / Division wise / Location wise if business area is not used in FI

5 Product Costing :This is used for valuation if inventories

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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.

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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 Maintain controlling 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 button

Controlling area :BIL Name :controlling area forBIL Company code to controlling area : Select controlling area same as company code Currency type : select 10 company code currency.

Once we select 10 company code currency , currency field, Chart of Accounts filed and Fiscal year variant filed will be updated automatically.

Cost Center standard hierarchy : BILHIER Save Select yes button for the message system to create as a standard hierarchy Select create request button Short description : Co customization for BIL

Press enter Press 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

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At the time of cost center creation It will ask under which hierarchy we are creating the cost centers.

In the report when we give cost center Dept.A It gives only Dept.A date. When we give 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 folder Select new entries button Give the company code : BIL Select save button or Ctrl+S Press enter to save in your request

Double click on a activate components / control indicators folder Select new entries button Fiscal year :2007

Cost center : Select component active Select active type check box Order management select component active. Select profit center accounting check box Save Ignore the warning message press enter

MAINTAIN 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 |

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| 1-100000 1-00000 Manual 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 2

Posting in FI Posting in CO

Wages 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 Documents

Wages A/c Dr 600000 Dept Common Dept A 300000 Dept Common Dept B 200000 Dept Common Dept C 300000

Rent A/c Dr 50000 Dept A

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To bank 650000 Repot CO line item

Transfer line item wise

Transfer document wise / Line item wise

Report costs ( Business transactions RKU1)

This is used when we split the cost center into number of cost centers or transfer for wrong cost center postings.

No FI document will be generated

CO document only will be generated

Transfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept X

Dept A Dept X

30/04/2008 400100 Salaries 200000 30/05/2008 400100 Salaries 250000 30/06/2008 400100 Salaries 275000 ----------

400100 total 725000 400100 Salaries 200000

30/04/2008 400101 wages 100000 03/05/2008 400101 wages 150000 30/06/2008 400101 wages 125000 ----------

Total 400101 375000 400101 wages 125000

30/04/2008 400300 Rent 500000 31/05/2008 400300 Rent 50000 30/06/2008 400300 Rent 50000 --------

400300 Total 150000 400300 Rent 40000

Planning primary costs ( Business transaction RKP1)

Planning cost center wise or no. range interval for all the types , budgeting cost center wise for each cost element.

Path: SPRO- Controlling General controlling Organization- Maintain number ranges for controlling document (T.Code is KANK)

Controlling area : BIL

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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 Accountant

MAINTAIN 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.

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Select save button or Ctrl+S

Press enter to save in your request

Select bank arrow Planning is made attend user area after plannings 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 elements

1. Primary cost element 2 Secondary cost elements A)Primary cost elements are our general ledger accounts

A)Secondary cost elements are other than general ledger accounts

B) Posting to primary cost elements are possiable

B) Postings to secondary cost elements are 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 CATEGORIES

PRIMARY 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

CO 11. Revenues: This is used for income accounts 12. Sales Deduction: This is used for expenditure accounts like sales commission

Trade discount where CO-Profitability analysis module is activated 22. External settlement( Settlement from CO FI): This is used for allocation of

internal order settlement to GL Accounts / Assets.

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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 ACCOUNTING

This 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

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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 default settings.(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

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Select display errors only radio button Select process button We get a message processing of batch input session completed. Ignore the message & select exit batch input button

Display primary cost elements created (KA03)

Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element Individual processing Display- (Tr code is KA03)

Select drop down button beside cost element Give the Controlling area : BIL Enter

Creation of field status group by making cost center required entry field: (Tr.Code is OBC4)

Select field status variant: BIL Double click on filed status groups folder

100000 equity share capital G001 We cant make cost center required for balance sheet accounts

400100 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 accounts Double click on General data Text make it required entry field Select next group button Cost center select required entry filed Select next page or page down button two times. Business area make it option entry filed Save


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Assign group new field group in GL expenditure accounts (FS00)

Give the GL account 400100 salaries account Company code :BIL From the menu select GL account change select create / Bank / Interest tab Filed status group change to G004 Save Give the GL Account No.400300 Rent A/c

Company code :BIL From the menu select GL account change

Change field status group to G004 Save

Creation of cost centers:

Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-create (Tr.code is KS01)

Cost center : Dept A Valid from :01.04.2008 to 31.12.9999 Enter

Give the name : Dept A

Give the description : Dept A Person responsible :Mr.A Cost center category : Select 1 production Hierarchy area : select BILHIER

Business area :BILH

Currency :INR

Select save button or Ctrl+S Ignore the warning message press enter

One more cost center : Dept B Valid from :01.04.2008 to 31.12.9999 Reference cost center : Dept A

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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 BILHIER

If we want to see production cost centers data Create a cost center group and assign Dept 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, Dept b and Dept C

If we want so settled production cost centers data create A cost center group and assign Dept A and Dept B

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Path : Accounting Controlling Cost center accounting Master data- Cost center group Create (Tr.code is KSH1)

Give the cost center name : BILHYD PROD Enter

Description Hyderabad production cost centers BIL Select Edit Cost Center Insert cost center button Select the cost centers Dept A

Dept B Save

Creation of cost Element group:

FI : Account groups Personnel cost CO:Dept wise personal cost or Administration

400100 salaries Create cost element group personnel and assign 400100 -400199

400101 Wages

400102 Bonus

400103 Staff welfare and Administration Create cost element group administration and assign 400300-400399

400300 Rent 400301 Telephone exp 400302 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 element group Create (Transaction code: KAH1)

Cost element group name : BILADMIN Enter

Description : Administration expenses for BIL Select insert cost element button (Shift+F4) (Edit Cost element Insert cost element) From 400300 to 400399

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Save

To enter exchange rate for type M for INR to EURO (Tr.Code is OB08)

Select new entries button Exchange rate type : M (Average rate) Valid from :01.10.2008 From currency : INR

To : EUR

Direct quotation :0.02 Select save button or Ctrl+S Press enter to save in your request

Posting of transaction in FI Transaction code:F-02

Give the document date : Todays date Type :SA Company code :BIL Posting key :40 Account :400100 salaries account Enter Give the amount :500000 Cost center : Dept A Text :Salaries posting

One more expenditure

Post key :40 Account :400300 Rent account Enter Amount :100000 Cost center : Dept A Text : Rent posting Posting key : 50 Account :200105 SBI current account Enter Amount :* Business area :BILH Text : Expenditure posting From the menu select Document Simulate Select save button or Ctrl+S

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To view cost center wise report:

Path: Accounting Controlling-cost center accounting Information system-Report for cost 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 button Keep the cursor and the first line item Select document button Select back arrow Select change layout button (Ctrl+F8) Select Document no.under column set Select value in reporting currency under displayed columns Select left arrow or show selected filed button Select reference document no.under column set Select value in report current under displayed columns Select left arrow

Select business transition under column set Select document no. under displayed columns Select left arrow Enter

To view co documents: Path :Up to reports for costs center accounting path is same -Line items Co documents :Actual costs (transaction code is KSB5)

Document no. :1 to 100000 Execute Select folder button for document no.1

Report co line items:

Business transaction RKU3 FI doc.13 001 400100 Salaries 500000 Dept A 150000 Dept B

50000 Dept C

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Report co line item 002 400300 Rent 100000 Dept A 003 200105 SBI 600000

Report co line item Transfer document wise /line item wise , transfer line item wise No FI document will be generated Only document will be generated

Path: Accounting Controlling-Cost center accounting Actual postings-Report line items-Enter (Transaction code is KB61)

Select document no. :13 Company code :BIL Fiscal year :2008 Execute Double click on line item no.1 Amount under new account assignment 150000 Cost center :Dept B Select new item button Select next button Amount under new account assignment 50000 Cost center : Dept C Save

Go and see the cost center report KSB1

Give the cost center Dept A Select execute button To view cost element wise to total

Select cost element column

Select 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 center postings. No FI document will be generated Only CO document will be generated Transfer cost element wise (GL account wise)

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Path : Accounting-Controlling-cost center accounting Actual postings-manual reporting of costs Enter (Transaction code is KB11N)

Cost center (old) : Dept A Cost element 400100 Salaries

Amount :100000 Cost center new : Dept C

One more cost center (old) : Dept A Cost element :400300 Rent

Amount :25000 Cost center (new) : Dept C Enter

Select save button or Ctr+S

Period lock:

FI CO A) Transaction which effect FI and CO eg:COIN

To open To open

B) Transaction which effect only CO Eg.RKU3, RKU1

No check To open

C) Transaction which effect only FI Eg.Debit balance sheet and credit balance sheet

To open No check

Sept .08 March Oct 2008 to March 2009

An expenditure posting in FI for September. We cant post since periods are not open.

Path: Accounting Controlling-cost center accounting-Environment Period lock-chang (Tr.code is OKP1)

Controlling area : BIL Fiscal year :2008

Select actual button Select period :01 Select lock period button Save

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Set controlling area :(OKKS):

Path :up to Environment the path is same Set controlling area

Give the controlling area :BIL Enter Real time integration of controlling with FI on line reconciliation ledger This is used when we get for 2nd scenario (no.of company codes having one controlling area ) all the company codes should use same Char of Accounts.

Planning cost center wise

Path :Accounting Controlling cost center accounting Planning Cost and Activity inputs Change (KP06)

Version :select 0 (Original budget) From period :1 To period :12 Fiscal year :2008

Select next page or page down button Cost center group :BILHIER

Cost element From :400000 Cost element To :499999

Free Form Bsed If we select radio button If we select from based radio button We have to select cost element from the drop down list and plan against the Climents

The cost element list in a available on screen plant against cost elements

Select form based radio button Select overview screen button For cost element 400100 Plan Fixed cost 1500000 Distribution key 1 Equal distribution Select cost element 400100

From the menu select Goto Period screen Select back arrow Fro cost element 400300 Plan fixed cost 960000

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Distribution key 1 To plan for Dept B Select next combination button To go back to previous dept select previous combination button Save

To view variance report cost center wise

Path :Accounting Controlling-Cost center accounting Information system Reports for cost center accounting Plan /Actual comparisons Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611)

Controlling area :BIL Fiscal year :2008

From period :10 To period :10 Plan version :0 Cost center Value :Dept A

Execute

Keep the cursor on Salaries A/c actual costs amount

Select call up report button Double click on cost centers : Actual line items keep the cursor on the first line item. Select document button

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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 Z

If salaries paid and posted FI at (F-02)

Salaries A/c ----------------------------------

100000 | | Out of 100000 salaries 20000 belongs to company code BIL

If we use the reconciliation account at cost center level and the 20000/- is transfer to company code BSL (Dept X) it passes the entry in financial automatically Here Reports at No FI records In BIL Books BSL Dr 20000 To Salaries a/c 20000 In BSL books

Salaries account Dr 20000

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To BIL a/c 20000

Customization at Finance:

To copy company code BIL customization including accounting to BSL

Path :SPRO-Enterprise structure Definition Financial accounting Edit, copy, Delete, Check company code(T.Code EC01)

Double click on copy, delete, check company code From the menu select organization object copy organization object From Company code :BIL To company code : BSL Enter

Select Yes for the message (for copy the GL accounts) Select No button allocate a different local currency Ignore the message press enter

Select create request button Short description :Customization for Birla Steel Limited Press enter

Enter once again to saving the request

Go on press enter till you got the message company code BIL copied to BSL with out 75 number range object Ignore the message press enter

Select back arrow Double click on edit company code data Select position button Give the company code :BSL Enter

Select company code : BSL Select address button change the company name to : Birla Steel limited Enter

save and Save in your request button

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Assign company code to company

Path :SPRO-Enterprise structure-Assignment Financial accounting-Assign company code to company

Select position button Give the company code : BIL Enter For the company code :BSL assign BIL(group name) Select save button or Ctrl+S Press enter to save in your request

Document type SA should allow inter company postings: (OBA7)

Select type : SA Select details button Select inter company postings check box Save


Creation of GL Masters FS00

BIL Books BSL Books 1) FI/CO reconciliation account under only expediter group which should not be a cost element 400150 Personnel group

1)FI/CO reconciliation account under any expenditure group which should not be a cost element 400150 personnel group

2) Birla Steels limited, current assets, Loans & Advances 200160 Birla Steel Limited

2)Birla Industries Limtied current Assets, Loans & Advances 200161 Birla Industries Limited

Same chart of accounts BIL chart of accounts BIL BSL chat of accounts BIL When we use same chart of accounts, account description should be same in all the company codes.

In BSL books If we create account No.200160 It takes Birla Steels Limited- we can not crate our account in our books.

Creation of GL masters FS00

Give the GL account no. :400150

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Company code :BIL Select with template button Give the GL account o. :400100 Salaries Company code : BIL Enter

Change short text & GL account long text to FI/CO reconciliation account

Select create / bank /interest tab Field status group change to ICCF CO < -> FI reconciliation posting Save Give the GL Account No.200160 Company code : BIL Select with template button Give the GL Account No.200100 Cash A/c Company code :BIL Enter

Select type/Description /tab Change short text GL account long text to BIRLA STEEL LIMITED Select create / Bank/Interest tab Filed status group change to G067 Deselect relevant to cash flow check box Save Give the GL account No.400150 Company code :BSL Select with template button Give the GL account 400150 Company code :BIL Enter & Save Give the GL account 200161 Company code :BSL Select with template button Give the GL account 200160

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Company BIL Enter

Select type / Description tab Change short text +GL long text to Bila Industries limited Save

Prepare cross company code Transaction (Transaction code is OBYA)

Path :SPRO-Financial accounting-GL accounting Business transactions-Prepare cross company code transactions

Company code 1 BIL Company code2 BSL Enter Posted in BIL cleared against BSL Debit posting key :40 Account debit :200160 ( Birla Steel Limited) Credit posting key :50 Account credit :200160 Posted in BSL Cleared against BIL Debit posting key :40 Account debit :200161 Bilra Industries Limited Credit posting key :50 Account credit :200161 Save Press enter to save in your request

CO customization ( tr code is OKKP)

Maintain controlling area

Assign company BSL to controlling area BIL Select controlling area :BIL

Select details button Company code to controlling area: Select cross company code cost accounting Reconciliation ledger document type :SA (GL accounts document) Double click on activate components / control indicators folder Select company code validation check box Double click on assignment of company codes folder

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Select company code :BIL Select copy as button Change the company code to BSL Enter & save

Ignore the warning message press enter

Activate reconciliation ledger (Tr code KALA) Note: Follow through path

Path:SPRO Controlling Cost element accounting-Reconciliation ledger-Activate deactivate reconciliation ledger

Double click on activate reconciliation ledger Controlling area :BIL Select Execute button Ignore the warning message press enter

Define adjustment accounts for reconciliation posting (Tr code is OK17) Same path

Double click on define accounts for automatic postings Select change account determination button Save Reconciliation account: Give the account no.400150 FI/CO Save Press enter to save in your request

FI CUSTOMIZATION

Define 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 variants for real time integration

Select new entries button Variant for real time integration B1

Select real time integration active check box

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Select account determination active check box Key date active from :01.04.2008 Document type :SA Ledger group (FI) :0L Text variant for :BIL

Select cross company code check box Select cross business area check box Select cross profit center check box Save Press enter to save in your request

Assign variants for real time integration to company code:

Same path. Select new entries button Company code :BIL Variant :B1

Company code :BSL Variant :B1

Save Press enter to save in your request

Creation of cost center for company code BIL (KS01)

Give the cost center department X Valid from :01.04.2008 To date :31.12.9999 Reference cost center :Dept A

Controlling area :BIL Enter

Change the name to :Dept X Change the description to cost center dept X Change company code to BSL

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Select save button or Ctrl+s Ignore the warning message press enter

Repost costs (F-02)

Cost center old :Dept A Cost element :400100 Salaries Amount :20000 Cost center new Dept X Save

To make text filed optional for field status group G004 cost accounts(Tr.code is OBC4) Select field status variant for BIL Double click on field status groups folder Double click field status G004 Double click on General data Text make it optional entry field Press enter to save in our request

Go and see the FI documents (Tr.code is FB03)

Select document list button Give the company code :BIL Enter the date :From date To Date Execute

Double click on document no. Select back arrow Chang the company code to BSL Execute

Double click on document no.

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CROSS COMPANY CODE POSTINGS

Company code :BIL BSL

Outstanding expenses of BSL paid by BIL

BSL Dr 25000 Outstanding 25000 To Bank 25000 To BIL 25000

Paying company code : BIL Credit Bank :BIL 25000 Debit outstanding exp :BSL 25000

Use the Transaction code :F-02

Give the document date :Todays date Type :SA Company code :BIL Posting key :50 Account no. :200105 SBI CA Enter Amount :25000 Business area :BILH Text :outstanding expense payment on behalf of BSL Posting key :40 Account no :100500 out standing exp. New company code :BSL Enter Amount :* Business area :BILH Text :+ From the menu select document Simulate Double click third line item Business area :BILH Text :+ Select next item button Business area :BILH Text :+

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Select save button or Ctr+S Posting by Company code :BIL Cross company code no. :15 08

FI posted by Company code :BSL Cross company code no. :2 08

By viewing the cross company code document number We know which company code has initiated the posting.

Select continue button

Accrual orders (Imputed cost calculation)

This is used for month end provision only in CO This is used for irregular expenses like Bonus Cost element category should be 3 Accrual/ Deferral per surcharge Define CO.No.range in interval for business

Transaction :KAZ1 Actual cost center accrual

FI 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

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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 1000

In 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 Dummy

Dept dummy values in the year end

31.03.2009 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:-

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Give the GL Account No. :400105 Company code :BIL Select with template button Give the GL account no. :400100 (salaries) Company code :BIL Enter Change short and GL account long text to Bonus account Save Select edit cost element button (F8) Valid from date :01.04.2008 to 31.12.9999 Enter Cost element category :Select 3 accrual deferral per surcharge save

Creation of cost center Dept dummy (KS01)

Give the cost center : Dept dummy Reference cost center : Dept A

Controlling area :BIL Enter

Change name to Dept dummy Change description to cost center: Department dummy Select save button Ignore the warning message press enter

Maintain overhead structure:

Path:SPRO-Controlling Cost element accounting-Accrual calculation percentage method-maintain overhead structure (Transaction code is KSAZ)

Select create over head structure button (F7) Over head structure :BIL1 Description :BIL overhead structure Select save button Row Base

10 B1 Enter Give the name salaries Select create button Row O/H rate (Over head rate) Description FR To CR 20 B2 Bonus 10 10 B3

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Enter Give the name Bonus Dependency :KRS1(controlling area) Select create button Save Ignore the message press enter Keep the cursor on overhead structure BIL1 Select assignment button (F5) Controlling area :BIL Select actual accrual radio button Select continue button

Valid from valid to overhead structure 1 2008 12 2008 BIL1

Save Double click on overhead structure BIL1 Keep the cursor on B1

From the menu select Goto calculation base From cost element 400100

Save Kept the cursor on B2

From the menu select Goto overhead rate

Valid from Valid to Actual overhead 1 2008 12 2008 10% Save From 10 To 10 Crdit B3

Keep the cursor on B3

From the menu select go to credit Company code :BIL Business area :BILH

Valid to :12 2008 Cost element :400105 Cost center :Dept Dummy

Save

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Define CO.no range interval for the business transaction KAZ1-Actual cost Center accrual:(Transaction Code KANK)

Give the controlling area :BIL Select maintain group button Double click on KAZ1- Actual cost center accrual Select CO.No range interval for BIL check box From the menu select Edit-Assigned element group Save


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


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)

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Accounting Controlling Cost element accounting-Actual postings Accrual calculation select cost center radio button give the cost center : Dept A period :5 fiscal year :2008 deselect test run check box select details list check box Execute Select next list level button

Go and see the cost center report KSB1

Give the cost center :Dept A Posting date :01.08.2008 to 31.08.2008 Execute

Select back arrow Give the cost center : Dept dummy Execute

Bonus provision in the year end in FI Transaction F-02

Give the document date & Posting :31.03.2009 Type :SA Company code :BIL Posting key :40 Account no. :400105 bonus account Enter Ignore the warning message press enter Amount :10000 Cost center :Dept dummy Text :Bonus provision for the year 2008-09 Posting key :50 Account :100500 outstanding exp. Enter Amount :* Business area :BILH Text :+ Document Simulate and save

Go and see the cost center report KSB1 Give the cost center :Dept dummy Posting date :01.04.2008 to 31.03.2009

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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 Total

Fixed Total If we choose fixed, values If we choose total To SKF are common for all months in the year, if we dont make changes in between Eg: Employee / Area

We have to enter values for SKF, for each and every month 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

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Define co.no range interval for the business transaction RKS-Enter Statistical key figures Transaction Code is (KANK )

Give the controlling area : BIL Select maintain groups button Double click on RKS Select Co.No.range interval for BIL check box From the menu select Edit Assignment element group. Save Ignore the warning message press enter.

Create Statistical key figures

Path :Accounting Controlling cost center accounting master Data-Statistical key figures Individual processing Create (Tr.Code is KK01)

Give the statistical key figure :EMP Enter

Give the Name :Employee Statistical key figure unit of measurement : Select EA each

Key figure category :Select fixed values under radio button Save

Path : Accounting Controlling Cost Center accounting actual postings-statistical key figures-Enter (Tr.code is KB31N)

Received cost center : Dept A Statistical KF : EMP

Total quantity :500 Received cost center : Dept B Statistical KF :EMP Total quantity :250 Save

Period end closing In the month end, we allocate costs from one cost center to other cost centers

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Dept C Dept A Dept B (Service department) (Production departments)

Salaries 500000 no.of employee of A and B Wages 300000 No.of employee of A and B Rent 50000 Percentage basis

Basis 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 B Wages 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 ===== ======= =======

Allocation Primary cost postings Secondary cost postings

B) Receiving cost centers cant 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.

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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 to create 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 B Wages 300000 No.of employees of A and B Rent 50000 Percentage basis

Option 1:

Cycle 1 Cycle 2 (Salaries and wages allocation) (Rent allocations) | | Segment 1 Segment 1 Option 2

Cycle 1 | ----------------------------------------------

| | Segment1 Segment2 (Salaries and wages allocation) (Rent allocation)

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ASSESSEMENT

1. 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 settingsDefine assessment (Tr.code S_ALR_87005742)

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Give the cycle :BIL1 Start date :01.04.2008 Enter Text : Assessment cycle Select iterative check box. Select save button or Ctrl+S Press enter to save in your request Select iterative check box Dept C Dept A 60% 300000 54000 Salaries 500000 Dept B 30% 150000 27000 Less :Allocation 500000 Dept Z 10% 50000 9000 --------

0 Add: Allocation 90000 Less :Allocation 90000 -------

0 Add: Allocation 1800

Dept Z Wages 400000 Dept X 50% 225000 4500 Add: Allocation 50000 Dept Y 30% 135000 2700 --------

450000 Dept C 20% 90000 1800 Less : Allocation 450000 -------

0 ====

We have to run number of items to make both cost center values zero. If we select interactive check box, system will run number of items automatically till both cost center values become zero.

Select attach segment button. Segment name : Segment 1

Description : Salaries allocation Assessment cost element :select 1000000

Sender rule :select posted amounts Share in % :100

Select actual value origin radio button Receiver rule :Select variable portions Variable portion type :Select actual statistical key figures

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Select sender / receivers tab Sender cost center :Dept C Under Cost element :400100 (Salaries a/c) Under Receiver cost center group :BILHYDPROD Select receiver tracing factor tab Statistical key figure :EMP

Select receiver weight factors tab Select save button or Crl+S Press enter to save in your request

Select attach segment button Segment name segment2 Description :Rent allocation

Assessment cost element :1000000 Sender rules :Posted amount Sharing in % :100% Select actual value origin radio button Select receive rule :Fixed percentages Select senders/ receivers tab sender cost center :Dept C Cost element :400300 (Rent ) Receiver cost center group : BILHYDPROD Select receiver tracing factor tab Dept A 70 Dept B 30


Go and see the cost center Report (Tr code is KSB1)

Give the cost center :Dept C Posting date :01.10.2008 to 31.10.2008 Execute Select cost element column Select sub totals button

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Dept C A B Salaries 1500000 No.of employees

500 250 100000 50000

Rent 25000 Percentage basis 70 30 17500 7500

Execution of assessment cycle:

Path :Accounting Controlling Cost center accounting Period end closing-Single functions-Allocations Assessment (KSU5)

Give the period :7 (October) Fiscal year :2008

Deselect text run check box Select details list check box Cycle select :BIL1 Execute

Select receiver button

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INTERNAL ORDERS

This is used to view costs for a specific task. Eg. A) Vehicle wise running expenses Management has to task decision whether to sell the (or) keep the vehicle in company

A) petrol expenses for the vehicle B) Repairs to the vehicle

It we take GL accounts in FI we will not create each vehicle wise petrol expenses and repairs account.

In cost center accounting vehicles will be under administration cost center and the petrol expenses 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 dont 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

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We don't know the exhibition costs by creating an order we can get exhibition costs

Orders will be of 2 types 1)Real orders 2)Statistical orders

Settlement is possible settlement not possible We 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 CO

In the production order valuation we cant take.(50000+50000) We have to take only one time 50000

When 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 dont 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 A Telephone expenses 50000 Allocation to paid order 50000

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Cost center Dept A Zero In the month end we allocation costs from Dept A to production orders there by cost center Dept A will be zero.

Order telephone no.66611983 Telephone expenses 50000

Management can see telephone wise expense at any point of time afterwards.

Suppose we create order as real order Telephone expenses Dr 50000 Cost center Dept A To Bank 50000 order telephone no.66611983 Real

Cost center c data Telephone Expenses 50000 Order Telephone no.6661987 Telephone expenses 50000 Allocation to production 50000

Order will be zero In the month end we allocate cost from order telephone no.66611983 to production order there by order will be zero.

Afterwards management cant 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 button Order category :Select 01 Internal order (Controlling) Enter

Order type :BILT Description :Telephone orders for BIL Planning profile :select 000001 (General budget /plant profile) Object class :Select Over head cost Select release immediately check box Save We get message no.range not processed Ignore the message press enter

Select assign /change interval button beside no.reage interval

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Double click order type :BILT Select motor pool A-ZZZZZZZZZZZZ(External) From the menu select Edit Assign element group Save

Ignore the message press enter

Creation of filed status group by making cost center and internal order required entry fields (OBC4)

Select field status variant :BIL Double click on field status group folder Select field status group G004 cost accounts Select copy as button Change the filed status group to G002 Change the text to cost accounts (CC & IO required) IO =Internal order Enter

Save CC=Cost Center Press enter to save in your request

Double click on G002 Double click on additional account assignment CO /PP order make it required entry field. Save

Creation of GL master telephone expense (FS00)

Give the GL account no.400305 Company code :BIL Select with template button GL account 400300 Rent account

Company code :BIL Enter

Change short text and GL a/c long text to Telephone expenses Select crate / Bank/Interest tab

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Change the filed status group to G002 Save

Select edit cost element button Valid from date :01.04.2008 Enter

Cost element category :Select 1

Save

Creation of Internal orders:

Path :Accounting Controlling-Internal orders-Master data-Special functions Order Create (Tr code is KO01)

Order type :Select BILT Enter

Order no. :BIL 66611983 (Telephone no.) Description :Telephone order no.66611983 Company code :BIL Business area :BILH

Select control data tab Select statistical order check box Save

One more order Order type :BILT Enter

Order :BIL66611984 Description :Telephone order no.66611984 Company code :BIL Business area :BILH

Select control data tab Select statistical order check box Save

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Creation order group

Up to master data the path is same Order group Create (Tr code is KOH1) Give the order group name :BILHYDTEL Enter Description :Hyderabad order group (GRP)for BIL Select insert order button(Select menu bar Edit Order Insert Order) Select to orders :BIL66611983 :66611984 Save

Posting of transaction in FI (F-02)

Document date :Todays date Type :SA


Account no. :400305 Telephone exp Enter

Give the amount :100000 Cost center :Dept A

Order :BIL66611983 Text :Telephone expenses

Posting key :50 Account no. :200105 (SBI current account ) Enter

Amount :*

Business area :BILH

Text :+

From the menu select Document Simulate and save

To view internal order wise report

Path :Accounting Controlling-Internal order-Information system-Reports for Interval orders -Line items Order -Actual line items-(Tr. Code is KOBI

Give the order no.BIL66611983 Remove the order group

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Execute Keep the cursor and telephone expense line item select document button

Planning order wise

Path :Accounting Controlling Internal orders Planning Cost and activity inputs Change (KPF6) Version :0 From period :8 (November) To period :8 Fiscal year :2008 Select next page or page down button Give the order no. :BIL66611983 Cost element :400305 Telephone expense Select from based radio button Select view screen button Cost element :400305 Total plan cost :75000 Select save button or Ctrl+S

To view variant report order wise

Path :Accounting Controlling-Internal order Information system-Reports for internal order-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)

Controlling area :BIL

Fiscal year :2008 From period :8 (Current month) To period :8 Pant version :0

Order values :BIL66611983 Execute

Real orders: They are used for vehiclewise expenses

Petrol expenses Dr 50000 Order no.AP9Z1234

52

To Bank 50000

In the month end: Cost center Dept A Order no.AP9Z1234 Settle to Cost center Dept B Cost center Dept C Settlement can be percentage basis / ratio basis /Amount basis

Order No AP9A1234 Petrol expenses 50000 Allocation Dept A 25000 Dept B 15000 Dept C 10000 ------- ------

50000 50000 ==== ====

Order will be zero

Petrol expense Dr 50000 Cost center:Common Order No.AP9Z1234 Statistical To Bank 50000

In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment / Distribution / Periodic posting /Direct activity allocation.

Cost center common Petrol Expenses 50000 Allocation to Dept A 25000 Dept B 15000 Dept C 10000 --------- -------

50000 50000 ==== =====

Cost center will be zero

Order no.AP9Z1234 Petrol 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)

53

Select filed status variant :BIL Double click on filed status group folder Select field status group G002 Select copy as button Change field status group to G010 Change the text to cost accounts (IO required ) Enter and save Press enter to save in your request

Double click on G010 Double cock additional account assignments Cost center make it optional entry field Save

Creation of GL master petrol expense under administration group (FS00)

Give the GL Account no. :400310 Company code :BIL Select with template button Give the GL account no.400300 Rent account

Company code :BIL Enter

Change short text and long text to petrol expenses Select create/bank /interest tab Field status group :G010 Save

Select edit cost element button Valid from date :01.04.2008 Enter

Cost element category :01

Save

Creation of secondary cost element i.e. Statement cost element (KA06):

54

Give the cost element :1000001 Enter Name and description settlement cost element Cost element category :Select 21 internal settlement Save

Maintain allocation structure:

Path :SPRO-Controlling Internal orders-Actual posting- Settlement-Maintain allocation structures

Select new entries button Allocation structure :B1

Text :BIL allocation structure

Save


Select :B1

Double click assignments folders Select new entries button Assignment :01 Text :Vehicle expenses settlement

Save Select :01

Double click on source folder From cost element :400310 Petrol expenses


Double click on settlement cost elements folder Select new entries button Receiver category :Select CTR cost center Settlement cost element :1000001

Save

55

Petrol expenses will be settled to cost center by using secondary cost element settlement cost element. Through orders.

Maintain settlement profiles:

Same path

Double click on maintain settlement profiles Select new entries button Settlement profiles :BIL1 Description :BIL settlement profile

Allocation structure :B1

Select to be settled in full radio button Double click on CTR cost center Select % settlement check box Select equivalence number check box Select amount settlement check box Under valid receivers For cost center :Select settlement required Max.no. distribution rules :999 Residence time :12 months Save Press enter to save in your request

Rule 1: Order no.AP9Z1234 settle cost center Dept A 30000 Petrol expenses 50000 settle cost center Dept B 15000 Dept C 5000

Rule 2 Order 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:

56

Maintain number range for settlement documents: Go through Same path (Tr.code is SNUM)

Select maintain groups button Double click on controlling area BIL Select Standard accounting document check box From the menu select EditAssign element group Save Ignore the message press enter

Creation of order type (KOT2_OPA)

Select new entries button Order category :Select 01 Internal order (controlling) Enter

Give the order type :BILV Vehicle order type BIL Settlement profile :BIL1 Budget profile :0000001 (General budget profile) Object class select :Overhead costs Select release immediately check box Save Ignore the message press enter save in your request

Select assign /Change intervals button beside no.range interval Double click on BILV Select motor pool A-ZZZZZZZZZZZZZZ external check box From the menu select Edit Assign element group. Save Ignore the message press enter

Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the transactions code (KANK)

Give the controlling area :BIL

Select maintain groups button

57

Double click on KOAO actual settlement Select co.no.range interval for BIL check box Form the menu select Edit Assign element group. Save


END USER AREA:

Creation of internal order (KO01) Give the order type :BILV Enter

Give the order :AP9Z1234 Description :Vehicle no.AP9Z1234 Company code :BIL Business area :BILH

Select control data tab Deselect statistical order check box Select settlement rule button Category :CTR cost center

Settlement receiver :Dept A Give the percentage :70

One more Category :CTR

Settlement receiver :Dept B Percentage :30

Save Ignore the warning message press enter

Posting of petrol exp F-02

Give the document date :Todays date Type :SA

Company cod :BIL Posting key :40

58

Account no. :400310 petrol exp. Enter

Give the amount :100000 Give the order no. :AP9Z1234 Text :Petrol exp.

Posting key :50 Account no. :200105 SBI current account Enter

Amount :*

Business area :BILH

Text :+

From the menu select menu document Simulate and save

Actual settlement :

Path :Accounting Controlling-Internal order-Period end closing-Single functions-Settlement Individual processing (K088)

Give the order :AP9Z1234 Settlement period :8 (current month) Fiscal year :2008 Deselect test run check box Select check transaction date check box Select execute button Select details list button

Note : Order means overall expenses Eg: Vehicle Expenses

Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc

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BUDGETING AND AVAILABILITY CONTROL

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 manager

If actual amount exceeds 85% of budget 425000 Or If the variance is above 20000 i.e actual 5200000 Or Both Whichever activity comes first Or If a actual amount exceeds 70% of budget go for option1 If actual amount exceeds 85% of budget go for option 2 If actual amount exceed 100% of budget go for option 3

When we do budgeting it generate a document We have to give budgeting No. range interval 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:

Planning Budgeting 1. We can plant cost element wise in the order

1.Budgeting will be done order wise

2. We can do planning period wise in a year (Month wise)

2. Budgeting should be done year wise

3.Micro level (Lower level) 3. Marco level (High level)

60

Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintain no.ranges for budgeting (Tr code is OK11)

Select change intervals button

Define tolerance limits for availability control Same path Select new entries button Controlling area :BIL

Profile :select 000001 General budget profile Tr.group :++ all activity groups

Action :select 2 waring with mail to person response

Usage :85 Save Press enter to save in your request

Specify exempt cost elements from availability control

Same path

Petrol expenses Repairs Drivers salary is Fixed cost

We can specify when we post to drivers salary all with order AP9Z1234 Even if, it exceeds 85% of budget no. message need to be given.

It is known expenditure

Select new entries button Controlling area :BIL Cost element :400100 Salaries account Save Press enter to save in your request

Maintain budget manager Same path

Select new entries button Controlling area :BIL

Order :BILV

61

Object class :OCost (Overhead cost) User name :SAP user (budget manager) Save Press enter to save in your request

Budgeting order wise (END USER AREA)

Path :Accounting-Controlling Internal order-Budgeting-Original budget Change (Tr code is K022)

Order :AP9Z1234 Enter

For the period :500000 (Budget amount) Over / budget also 500000 From the menu select Extras Availability: Control Activate Save

Posting of petrol expenses (F-02)

Give the document date :Todays date Type :SA


Account no. :400310 Petrol expenses Enter

Give the amount :350000 Order :AP9Z1234 Text :Petrol expense


Give the amount :* Business area :BILH

62

Text :+

From the menu select Document Simulate and save Ignore the message press enter

To view in box of the budget manager Path :SAP MenuOffice Work place (Tr code is SBWP)

Select inbox folder We get a message accounting document no.

63

PROFIT CENTER ACCOUNTING

This is used to view profitability division wise /product wise /location wise if business area is not use in FI

Idea scenario

Company FI | Company code FI | Business area FI (Location) | ----------------------------------------------------------------------------------------

| | | | Steel Cement Pharma Co-profit center Division Division Division Accounting | | Product wise Co profitability Analysis

Option 1 Option 2 Hyderabad location HYD BGL MOM | | | | Steel Cement Pharma Steel cement Pharma

Profitability Profitability Balance sheet

The advantage of profit center accounting is it derives profit center automatically though derivation rules. A) In case of expenditure Tough cost centers B) IN case revenues Automatic account assignment C) In case of balance Though business area

Sheet 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

64

b) At the time of posting

wages a/c Dr 500000 Dept A To Bank 500000

It 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 no derivation rules, system updates dummy profit center. Transfer form dummy profit center to respective center. Create derivation rule so that future transactions will not go to dummy profit center. They will go to respective profit centers.

Set controlling area (OKKS)

Path :SPRO-Controlling Profit center accounting-Basic settings-Set controlling area Give the controlling area :BIL Enter

Maintain controlling area settings: (OKE5) (Follow through path )

Path :Up to base settings the path is same- Controlling area settings-Maintain controlling area settings

Standard hierarchy :BIL Select elimination of business volume check box Profit center local currency type :Select 20 Controlling area currency Select confirm button Select store truncation currency check box Save

Elimination of internal business volume

Purchase Material no. 1 Profit center steel Order Vendor no. 1234 | Plant HYD | Profit center Steel | Qty 1 Kg | Rate 100 Goods Receipt

It should no take in steel profit center 100+100 It should take only one time

65

Create dummy profit center

Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-Create dummy profit center(Tr code is KE59)

Double click on dummy profit center Give the dummy profit center :BIL dummy Select basic data button Name :BIL dummy Description :Dummy profit center for BIL

Profit center group :BIL

Save

Set control parameters for actual date

Path : Up to basis settings the path is same Controlling area settings -Activate direct postings-Set control parameters for actual data (Tr code is 1KEF)

Select new entries button From year :2008 Select Line items check box Select online transfer check box Save

Maintain plan versions

Up to activate the path is same

Plan version Maintain plan version

Select version :0 Plan /Actual Version Double click on settings for profit center accounting folder Select new entries button Year :2008

Select online transfer check box Select line items check box Exchange rate type :B (bank selling rate) Save

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Define 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

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Year :2008 From no. :100001

To no. :200000 Enter and save

Creation of profit center:

Path :Accounting-Controlling-Profit center accounting-Master data-Profit center-Individual processing-Create (Tr code is KE51)

Give the profit center :Steel Select master data button Analysis period to :01.04.2008 to 31.12.9999 Name :Steel

Long text :Profit center steel

Person responsible :Mr A Profit center group :BIL

select activate button (Shift+F1)

One more profit center

profit center cement select master data button name :Cement long text :Profit center cement person responsible :Mr B profit center group :BIL select activate button

Create account groups

up to master data the path is sameAccount group create (Tr code is KDH1)

Give the account group name :PLITEMS ( Profit & Loss) Enter

Description :P & L accounts for BIL

Select insert account button From :300000

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To :499999 Save

Select Back Arrow Account groups :BSITEMS

Enter

Description :Balance sheet accounts for BIL

Select insert account button Form A/c :100000

To A/c :299999 Save

Assign profit center in cost center

Path :Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-Change (KS02)

Give the cost center :Dept A Select master data button Give the profit center :Steel Select save button or Ctrl+S Ignore the warning message press enter

Cost center :Dept B

Enter

Profit center :Cement

Save Ignore the warning message press enter

Creation of sales account as revenue element (FS00)

Give the GL account no. :300000 Sales A/c Company code :BIL Select edit cost element button Enter

Cost element category :Select 11 Revenues

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Save

Maintain automatic account assignment of revenue elements

Path :SPRO-Controlling Profit center accounting Actual postings-Maintain automatic account assignment of revenue elements (Tr code is OKB9)

Select new entries button Company code :BIL Cost element :300000 Sales A/c

Account assignment details :Select 2 Business area is mandatory Save


Select :BIL with cost element 300000

Double click on detail per business area /valuation area folder Select new entries button

Option 1 Option 2 HYD location | Steel cement Pharma HYD BGL MUM 300000 | | | HYD Steel Steel Cement Pharma 300001 Sales cement 300000 Sales account HYD Cement 300002 Sales pharma HYD Steel HYD Pharma BGL Cement Mum Pharma

Business area : BILH Profit center : Steel Business area : BILB Profit center : Cement Save

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option

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Same path Select choose accounts (Tr code is 3KEH)

select new entries button Account from :100000 Account to :299999 Default profit center :Steel Save


Select profit center determination button Select crate step button Step description :Profit center derivation though business area for balance sheet

items.

Select drop down button under name column Select GSBER businesses area Save

Select maintain rule values button Select source field intervals on /off button Account no.100000 To account no.299999 Business area :BILH

Profit center :Steel

Account no :100000 To account no. :299999 Business area :BILB

profit center :Cement

Save

END USER AREA 1) Planning profit center wise for p & L items

Path :Accounting Controlling Profit center accounting Planning cost /Revenues-Change (Tr code is 7KE1)

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Version select :0 From period :8 To period :8 Fiscal year :2008

Company code :BIL Select next page or page down button Profit center :Steel Account group :PLITES

Select from based radio button Select overview screen button Per account no.300000 Sales account Profit center reporting currency :600000 (Minus report currency) For account no.400100 salaries A/c without any sign Save

Planning profit center wise for balance sheet items (Only for second scenario)

Up to planning the path is same Balance sheet accounts change (Tr code is 7KE3)

Version :0 From period :8 To period :8 Fiscal year :2008

Company code :BIL select next page or page down button Profit center steel

Account group :BSITEMS

Select form based radio button Select overview screen button For account :100300 SBI rupee term loan Profit center reposting currency 20000- with minus sign

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For 200105 SBI current account profit centers reporting currency 200000 without any sign

Save

Posting of cash sales (F-02)

Give the document date :Todays date Type :SA Company code :BIL Posting key :40 Account no. :200105 (SBI current account) Enter

Amount :550000 Business area :BILH

Text :sales posting

Posting key :50 Account no. :300000 (Sales a/c) Enter

Amount :*

Business area :BILH

Text :+

Form the menu select Document Simulate and save

Posting of salaries (F-02)

Document date :Todays date Type :SA Company code :BIL Posting key :40 Account no. :400100 Salaries a/c

Enter

Give the amount :475000

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Cost center :Dept A Text :Salaries posting


Amount :*

Business area :BILH

Text :+

Document simulate and save

To View variance report profit center wise for P & L items

Path :Accounting Controlling Profit center accounting-Information system-Repost for profit center accounting-Interactive reporting Profit center group:Plan /actual /variance (Tr code is S_ALR_87013326)

From period :8 (Current /Running month) To period :8 Fiscal year :2008

Plan version :0 Profit center values :steel

Profit center accounts groups :PLITEMS Select execute button

To view variance report profit center wise for balance sheet items:

Up to interactive reporting the path is same Profit center group: Balance sheet accounts plant / Actual /Variance (Tr code S_ALR_87013336)

From period :8 (Running month) To period :8 Fiscal year :2008 Plan version :0

Profit center values :Steel Balance sheet account group :BSITEMS

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Execute

Transfer of values from one profit center to another profit center One cost center works for no.of profit centers we an assign only one profit center is cost center. In dept A Profit center steel From profit center steel transfer to cement Manual transfer through cycles

No.FI document will be generated No.CO document will be generated Only profit center document will be generated.

Path :Accounting Controlling-Profit center accounting-Actual postings-Profit center document Enter (Tr code is 9KE0)

Layout select 8A-001 document :Profit center /account Select execute button Company code :BIL Select Enter screen button Profit center :Steel

Account no. :400100 Salaries In profit center local currency 500000 (with minus sign) Profit center :Cement Account no. :400100 Salaries

Amount :500000 (without minus sign) Save

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INTEGRATION

Organization structure :

FI: Business area

Company | Company code MM:- Structure SD: Structure

Business area | Factory / Sales organization Company code level / | Plants Branch/Port | Regional location | | | Storage locations Raw material / Finished goods Distribution-> Direct sales through /Packing material Channel Agents | |

Division Product groups/ products

Why we create port as a plant:

Keep the material on ship HYD Chennai Customer Factory Port

Export sale Terms of delivery-FOB (Free on Board) ownership will be transferred once we kept the martial on ship.

Business area will be assigned to plants, plants will be assigned to sales organization business area will be assigned to sales organizations.

In SD module, combination of sales organization, distribution channel and division One sales area.

Sales Area 1 Sales Area 2 Hyd sales Org. Hyd Sales org | |

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Direct sales Through agents | | Steel Steel

Movement types: Similar to posting keys in FI 101 Material receipt against purchase order /production order 102/122 Reversal of 101

201 Issue to cost centers 202 Reversal of 201 261 Issue to orders 262 Reversal of 261 521 Production receipt without production orders. 522 Reversal of 521 561 Opening stocks taking 562 Reversal of 561 601 Delivery (sales) 602 Reversal of 601

Difference between 201 and 261

Cost centers Dept A Dept B Dept C Issue material Production order 1 (Movement type 261)

Stores items to issue Production order 2 (Mov.type 201) (cost center 201) Production order 3

Material issue is identifiable to production orders use movement type 261 Material issue is not identifiable to production orders use movement type 201

Transaction key /process key

a) BSX Inventory postings b) WRX Goods receipt /Invoice receipt (GR/IR) c) PRD Price difference /Production order differences d) GBB Offsetting entry for inventory postings (i) VBR consumption (ii) VNG Scrapping (iii) BSA Opening stocks (iv) ZOF Production receipt without production order (v) AUF Production receipt with production order

(vi) VAY Delivery where sales account is created as revenue element (CO implemented) (vii) VAX Delivery where sales account is not created as revenue element (Co not implemented)

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(viii) AUA production order differences

Eg: 400000 Raw material consumption 200121 Inventory raw material

For consumption Raw material consumption Dr To Inventory raw material

For GBB VBR Assign account no.400000 For BSX Assign account no.200121

Valuation class: Valuation class determines the GL accounts to be posted automatically. A) Raw materials Local Imported Inter unit purchases Inter company purchases 4 Valuation class B) Stores :Local 2 valuation class C) Finished goods own manufacturing 1 valuation class

Valuation grouping code / valuation modifier /Valuation modification key:

Company codes BIL BCL BSL Chart of accounts BIL Plants HYD-BGL BGL-MUM HYD-MUM Local raw materials RM1 RM2 RM3-RM1 RM2-RM3

Incase of purchases, 200121 Inventory raw material local

When we follow same chart of accounts for numbers of company codes, Instead of assigning accounts number of times, assign only one time by using valuation grouping code.

Valuation Chat of accounts Company code Valuation Areas Plants Grouping

HYD BIL BIL X BGL BIL BIL X BGL BIL BCL X MUM BIL BCL X HYD BIL BSL X MUM BIL BSL X

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For X in case of RM local purchases assign account number 200121, inventory Raw material local.

This is similar to posting periods in FI

A) Define posting period variant X B) Assign posting period variant to company codes X to BIL X to BCL X to BSL c) Define posting periods for variant X for X1, 2008 12,2008

Material types Price controls

Raw materials ROH V-Moving average price purchase price Stores & spares ERSA V-Moving average price purchase price Packing & material VERP V-Moving average price purchase price Finishing goods FERT S-Standard price Raw materials + Semi finished goods HALB Overheads Purchased V-Moving average price Purchase price Produced S-Standard price Raw material+Overheads Trading goods HAWA V-Moving average price Purchase price Services DIEN

Semi finished goods purchased Dept A Dept B Dept C Dept D 15 days FG Sales order To be delivered with in 2 days Purchase an item where with

In 2 days purchase an item Where processing of A,B and C is completed D processing of D

Se

sap-co-all conf. excl cin

Documents

controlling area business

company company code

bbusiness area

cost center acontrolling

asset accounting area

pp consultant area

cost center accounting

sd end user area