Transcript CO – Internal Orders
Controlling Internal Orders
Controlling Internal Orders 1
Course Overview Objectives
Provide an overview of the CO module
Identify CO internal order/budget terminology and concepts
Understand the internal order/budgeting process
List the triggers for internal order/budget maintenance
Describe the various tools for processing internal orders/budgets
List and describe internal order/budgeting reports
Illustrate the integration between the CO and Funds Management modules
List the CO internal order roles and their authorized transaction codes
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Overview of Controlling (CO)
Definition
Controlling (CO)
revenue. It is also a management instrument for organizational decisions.
represents the County’s flow of cost and Controlling facilitates coordination, monitoring and optimization of all processes in an organization. Controlling (CO) and Financial Accounting (FI) are independent components in the SAP R/3 system. However, the two components are tightly integrated and the data flow between the two components takes place on a regular basis.
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SAP Financial and Purchasing Components
FI FI General Ledger Accounts Payable The “Top” book of financial records Manages vendor invoices FI FI Accounts Receivable Asset Accounting Manages customer billing Manages fixed assets and depreciation CO MM Controlling Materials Management Manages responsibility accounting Manages purchasing/inventory management
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HR/Materials Management Modules
What Goes Where
FI Module Other Financial Modules
ASSETS PAYROLL FUNDS MANAGEMENT ACCOUNT S PAYABLE PURCHASING CONTROLLING INVENTORY MANAGEMENT ACCOUNTS RECEIVABL E GRANTS MANAGEMENT
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Key CO Internal Order Terminology (Internal Orders):
Internal Order
Real
Statistical
Internal Order Group
Settlement
Closing
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Internal Order
Debits Credits Order Balance
Used to plan, collect, and settle the costs of internal jobs, tasks, or projects.
Examples:
New Law Center
Precinct One Benbrook Project WIC Site 01 Bedford etc.
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Internal Order (continued)
Debits Credits Order Balance
As internal orders are created, the following attributes are defined:
Order Type (ex: AUC* for Buildings, Public Health Services, etc.) Short Text (up to 40 characters) Company Code (will always be “TC01”) Business Area (typically “1000” for Tarrant County) Plant Functional Area (ex: Health Care, Roads & Bridges, etc.) Object Class (ex: Investment, Overhead, etc.) Responsible Cost Center * AUC = Asset Under Construction;
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Statistical Internal Order (informational purposes only)
Debits Credits Order Balance
Used to evaluate costs that are to be separated from other costs in cost element or cost center accounting.
Statistical orders are not settled.
Overhead cannot be applied to a statistical order.
Example: A statistical order for each fleet vehicle
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Real Internal Order
Debits Credits Order Balance
Used for assets under construction (ex: buildings).
Costs charged to real orders are settled to assets under construction (AUC’s).
Overhead can be applied to a real order.
Examples: New law center
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More On Internal Orders
Order Number Range: Real/Statistical Order: Internal Order Type (Code): Public Health Services Internal Orders (ZPHS) CDBG Internal Orders (ZCDB)
400000 – 499999 500000 – 599999
Statistical Statistical
Debits Credits Order Balance ROW Internal Orders AUC for Software Development (ZASW) AUC for Buildings (ZABD) AUC for Infrastructure (ZAIN)
600000 – 699999 910000 – 919999 920000 – 929999 930000 – 939999
Statistical Real Real Real
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Internal Order Group
A hierarchical group of internal orders.
Examples:
ROW State/ROW County
CDBG Projects AUC Law Building
etc.
After a internal order group is create, internal orders are assigned to that group.
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Internal Order Group (continued)
As internal order groups are created, the following attributes are defined:
Internal Order Group Name (10 characters) Description (up to 40 characters)
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Internal Order Group (continued)
Examples: = internal order group; = internal order;
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Settlement (real orders only)
TWO TYPES: Automatic Settlement – carried out on a monthly basis as part of month end closing process.
Full Settlement – carried out when a internal order (project) is completed.
Debits Credits Order Balance
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Closing (real orders only)
Use to lock an internal order from any further changes/updates.
Occurs after full settlement Debits Credits Order Balance
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Internal Orders/Groups Business Process
1.
Create Internal Order 6.
Close Internal Order (real orders only) 2.
Create Internal Order Group 5.
Settle Internal Order (real orders only) 4.
Create Budget for Internal Order (if it has budget)
Controlling Internal Orders
3.
Assign Internal Order To Group
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Process:
Process Triggers and Outputs (internal orders/groups)
Trigger: Output: Create an internal order (real) [KO04] Create an internal order (statistical) [KO04] Need to track, budget, collect, and settle the costs for an AUC project .
Need to track, budget, and collect costs for a non-AUC project.
Create an internal order group [KOH1] Business need for collective reporting/processing of internal orders.
A new internal order for AUC projects.
A new internal order for non-AUC projects.
A new internal order group.
Assign an internal order to a group [KOH2] Business need for internal order to be included in an internal order group.
Controlling Internal Orders An internal order included in an internal order group.
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Process Triggers and Outputs (internal orders/groups)
Process: Trigger: Output: Create an internal order budget [KO22] Automatic settlement of an internal order [KO88] Full settlement of an internal order [KO88] An internal order which has budget.
Month end processing.
A completed AUC project.
An internal order budget.
An internal order which is settled for the month.
A fully settled internal order.
Close an internal order [KO02] An internal order for AUC project that has been settled.
A closed internal order.
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1. Creating Internal Orders
OPTIONS: A. Manual Method (KO01) Debits Credits Order Balance B. Order Manager Tool* (KO04) *The order manager tool allows you to see the existing internal orders as you are creating new orders.
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1. Creating Internal Order (continued)
Debits Credits Order Balance A. Manual Method (KO01)
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1. Creating Internal Orders (continued)
B. Order Manager Tool (KO04) Debits Credits Order Balance
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1. Creating Internal Orders (continued)
REAL Orders: Debits Credits Order Balance Note that the “Statistical order” checkbox is not selected for a real order.
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1. Creating Internal Orders (continued)
REAL Orders: Debits Credits Order Balance Creating an “asset under construction” (AUC) for a real order.
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1. Creating Internal Orders (continued)
REAL Orders – Creating AUC: Debits Credits Order Balance Note: Additional description, serial number, and “capitalized on” date can be added on the General tab.
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1. Creating Internal Orders (continued)
REAL Orders – Creating AUC: Debits Credits Order Balance Note: Same cost center entered earlier will be entered in the “Resp.
Cost center” field on the Time-dependent tab.
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1. Creating Internal Orders (continued)
REAL Orders – Creating AUC: Debits Credits Order Balance Note: If needed, the depreciation fields can be overwritten on the Deprec area tab.
Next, you would use the button to return to the Order Manager screen.
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1. Creating Internal Orders (continued)
REAL Orders – Creating AUC: Debits Credits Order Balance Note: After completing the setup of the AUC, you would choose the button to save the real order.
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1B. Creating Internal Orders (continued)
STATISTICAL Orders: Debits Credits Order Balance Note that the “Statistical order” checkbox is selected.
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2. Creating An Internal Order Group
Create Order Group (KOH1)
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3. Assign Internal Order to Group
OPTIONS: A. Assignment during creation of order group (KOH1) B. Assignment after an order group has been created (KOH2)
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3. Assign Internal Order to Group (continued)
A. During creation of order group (KOH1): = used to assign/add an internal order to the group.
= used to search for the desired internal order number.
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3. Assign Internal Order to Group (continued)
B. After an order group has been created (KOH2): = used to search for the desired internal order number to be assigned.
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Key CO Budgeting Terminology (Internal Orders):
Budget: New Law Center
Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000
Current Budget – current value of budget including any additions (supplements) and subtractions (returns) [see formula below].
Original Budget – original value of budget for project.
Budget Supplement – additions to original value of budget.
Budget Return – subtractions from original value of budget.
CURRENT BUDGET = ORIGINAL BUDGET + SUPPLEMENTS RETURNS
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4. Create Budget for Internal Order (if applicable) Budget: New Law Center
Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000
TWO TYPES OF BUDGET SETUP:
Assets Under Construction – Enter an overall budget amount and yearly budget amounts.
Non-Assets Under Construction – Enter just an overall amount.
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4A. Create Budget for Internal Order [ASSETS UNDER CONSTRUCTION] Change Original Budget (KO22) Budget: New Law Center
Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000
Note: Both overall and annual budget amount(s) are entered.
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4B. Create Budget for Internal Order [ NON-ASSETS UNDER CONSTRUCTION] Change Original Budget (KO22) Budget: New Law Center
Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000
Note: Only an overall budget amount is entered.
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4C. Other Budget-Related Transaction Codes
Display Original Budget (KO23) Budget: New Law Center
Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000
Change Budget Supplement (KO24)
Display Budget Supplement (KO25)
Change Budget Return (KO26)
Display Budget Return (KO27)
Change Budgeting Document (KO2A) [to edit text for budget docs]
Display Budgeting Document (KO2B) [to view text for budget docs]
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5.Settling An Order (real orders only)
TWO TYPES OF SETTLEMENT:
Automatic Settlement – carried out on a monthly basis as part of month end closing process.
Budget: New Law Center
Commitment Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000
Full Settlement – carried out when a internal order (project) is completed.
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5A. Automatic Settlement of An Order [done monthly]
Settle Costs From Order (KO88) Debits Credits Order Balance Notes: Remove “Test Run” indicator and reexecute after successful test run.
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5B. Full Settlement of An Order [done after project is complete]
Settle Costs From Order (KO88) Debits Credits Order Balance Note: Remove “Test Run” indicator and reexecute after successful test run.
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5C. Collective Settlement of Orders
Debits Credits Order Balance Collective Settlement of Costs From Orders (KO8G) Note: With collective settlement, a variant (ex: INTORDERS) can be used to select/settle multiple orders.
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6. Closing An Order (Real Orders Only)
Close Internal Order (KO02) Debits Credits Order Balance
- used to close an internal order.
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Internal Order Reports
Display Actual Line Items for Internal Orders (KOB1)
Display Commitment Line Items for Internal Orders (KOB2)
Display Budget Line Items for Internal Orders (KOB4)
Display Actual Costs (KSB5)
Display Budget Document (KO2B)
Display Budget/Actual/Commitments (S_ALR_87013019)
Display Cost Centers Commitment Line Items (KSB2)
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Internal Order Reports (continued)
Display Actual Line Items for Internal Orders (KOB1) - used to view document for selected line item.
- used to view details for selected cost element.
Note: The other “Display Line Item” reports (KOB2, KOB3) look identical to the above report.
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Internal Order Reports (continued)
Display Actual Costs (KSB5) - used to view document for selected line item.
- used to view details for selected cost element.
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Internal Order Reports (continued)
Display Budget Document (KO2B) - used to view any long text for the budget document.
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Internal Order Reports (continued)
Display Budget/Actual/Commitments (S_ALR_87013019)
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Internal Order Reports (continued)
Display Cost Centers Commitment Line Items (KSB2) - used to view document for selected line item.
- used to view details for selected cost element.
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Internal Order Integration With Funds Management (set up in Funds Mgmt) Controlling (Managerial Reporting) Funds Management (Budget Control) Internal Order #6 Internal Order #7
Cost element Actual Plan Wages $10,000 $11,000 Overtime 3,000 4,000 Travel 6,000 6,000 Utilities 4,000 3,000 Total 23,000 24,000
Funds center #1 Fund ABC
Commitment Commitment Actual Budget Actual Budget Salaries $60,000 $70,000 Operating 15,000 25,000 Total 75,000 95,000 Total 75,000 95,000
Funds center #2 Fund DEF
Commitment Actual Budget Salaries $40,000 $50,000 Operating 15,000 35,000 Total 55,000 85,000
Budget control is at the combination of the fund/funds center/ commitment item/functional area Note: There is a one to one relationship of cost objects to funds centers
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CO Roles/ Authorized Transactions
“CO – Internal Orders” Role -
Create Internal Order (KO01)
Change Internal Order (KO02) Order Manager (KO04) Collective Proc. Of Internal Orders (KOK2)
Automatic Collective Proc. Of Internal Orders (KOK4) Create Internal Order Group (KOH1) Change Internal Order Group (KOH2) Change Original Budget (KO22) Change Budget Supplement (KO24) Change Budget Return (KO26) Change Budgeting Document (KO2A)
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CO Roles/ Authorized Transactions (continued)
“CO – Display” Role –
Display Internal Order (KO03)
Collective Display of Internal Orders (KOK3) Master Data List for Internal Orders (KOK5)
Collective Printing of Internal Orders (KOK6) Display Internal Order Group (KOH3) Display Original Budget (KO23) Display Budget Supplement (KO25) Display Budget Return (KO27) Display Budgeting Document (KO2B)
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Course Overview Summary (continued)
You are now able to:
Provide an overview of the CO module Identify CO internal order/budget terminology and concepts Understand the internal order/budgeting process List the triggers for internal order/budget maintenance Describe the various tools for processing internal orders/budgets List and describe internal order/budgeting reports Illustrate the integration between the CO and Funds Management modules List the CO internal order roles and their authorized transaction codes
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Accessing Training Materials
All TITAN training materials for Phase II are stored on the Tarrant County website This website is accessed through your Internet Explorer from any computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Materials website is: http://www.tarrantcounty.com/titan/lib/titan/training/index.asp
Set up this website as a favorite in your web browser for quick future access Enter the URL above in the address field in your browser When you reach the website, go to
Favorites > Add to Favorites
in the Browser menu A pop-up window will be displayed with a default name for the site. Click OK.
To access this site in the future, just click on the Favorites item in the menu and highlight the name for the website.
You will go directly to the website. Controlling Internal Orders 54
Accessing Training Materials (cont’d)
Review the instruction page to see how to use the website Click on the
Courseware
page link at the top of the Instruction A
Listing of Courses
will be displayed Click on the
Course Title
content of the course to see a general description of the or Click on one of the buttons beside the Course Title to go directly to either the
Overview, Quick Reference Cards, or Tutorials
These training materials will be available for your use and reference at any time Controlling Internal Orders 55
Running Tutorials
An additional learning tool is being provided with the Phase II SAP implementation - Tutorials Tutorials are simulations of the SAP system that take you through a transaction step-by-step in a mock SAP environment. These can be viewed in two ways: ► ► As a movie that takes you through the transaction in a demonstration, or As an interactive, hands-on practice session that stops on each screen and directs you to make entries in fields or take actions per instructions provided by the
wizard
and in the
bubbles
Tutorials are provided with each course in the Finance and Purchasing training A list of the tutorials is provided at the end of each course.
Go to the Training Materials website to access and run these tutorials. Detailed instructions are provided on the website
Happy Tutoring!!
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Training Sandbox
An SAP environment (Training Sandbox) where you can practice your skills in a real instance of SAP will be available after June 18 The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation course The only differences are: Highlight the Training environment on the Logon pad Click logon Enter 520 in the Client field Enter the same User Id and Password you are assigned for Production Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the Quick Reference Cards to walk you through the transactions.
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1 2 3
Getting Help
Review the on-line help in SAP Review your training materials and notes.
Ask your peers or super user for assistance.
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Tarrant County Help
Problems with running tutorials?
Training Mailbox – [email protected]
After utilizing the various methods of help on the previous page, if you still have questions or problems or If you have problems at any time with accessing SAP, printing, computer or network problems, etc.
Contact the Tarrant County IT Help Desk at 817-884-3507 Controlling Internal Orders 59