Transcript Document
Module 9 Setup for Controlling 7/16/2015 1 Controlling (CO) CO FI 7/16/2015 Controlling Internal Accounting Cost Accounting Managerial Accounting Flexible – Non-standard Financial Accounting External Accounting Financial Statements Taxes Standard 2 Controlling (CO) While there are different requirements for internal and external users of accounting data, the underlying data is usually the same for both purposes and can be “captured” while recording business transactions— purchase orders, goods receipts, material withdrawals, etc. The data can then be presented in different ways for different users. Information system reports in FI are standard G/L Account Listing, for example Information system reports in CO are flexible 7/16/2015 3 Cost Elements Primary Cost Elements Expenses in FI that are relevant to cost accounting are recorded in CO using primary cost element. Primary cost elements can only be created when a G/L expense account exists. Thus, there is a oneto-one relationship between primary cost elements and G/L expense accounts. When an FI posting occurs in a G/L account for which a primary cost element has been defined, a valid controlling object (cost center, production order, project, etc.) is required before posting. 7/16/2015 4 Cost Elements Secondary Cost Elements Secondary Cost Elements are used exclusively for certain types of CO transactions. Secondary cost elements have no corresponding G/L account. Secondary cost elements can be used in transferring costs from one cost center to other cost centers. Primary costs are grouped together and transferred to receiver cost centers using a secondary cost element. 7/16/2015 5 Cost Centers Cost centers are used to track WHERE costs occur in the organization, e.g. accounting, HR, marketing, production, R&D . As costs are incurred, they are assigned or posted to the appropriate cost center. The posting and assignment of costs to cost centers is a critical step in using the CO module. Cost centers in SAP are organized in a Standard Hierarchy. 7/16/2015 6 Cost Center Standard Hierarchy The cost center standard hierarchy organizes cost centers and provides the ability to organize reports at different levels in the organization: FS-CC-## (Standard Hierarchy) ##HQ (Cost Center Group / Hierarchy Area) HQ Cost Centers A010 – Finance A020 – H/R A030 – Sales A040 – Marketing A050 – Purchasing A060 - Administration ##MFG (Cost Center Group / Hierarchy Area) MFG Cost Centers P010 – Production P020 – Warehouse P030 – Receiving 7/16/2015 7 Cost Center Groups Cost Center Groups can also be defined to support additional reporting capabilities: ##HQ (Cost Center Group / Hierarchy Area) HQ Cost Centers A010 – Finance A020 – H/R A030 – Sales A040 – Marketing A050 – Purchasing A060 - Administration ## Sales group With the sales group defined, cost center reports can be produced for Sales, Marketing or Sales and Marketing combined. 7/16/2015 8 Cost Allocation Frequently, costs like rent, computer expense, utilities, etc. have to be allocated to cost centers to provide accurate cost reporting. Costs can be allocated using a statistical key figure, which defines some measurable value related to the cost center, like square footage, head count, CPU hours, etc. Costs can also be distributed using fixed percentages. 7/16/2015 9 Module 9 Tasks Define Controlling Area (self-contained cost accounting) and assign to company code Create and Maintain standard cost hierarchy Define Create cost centers and groups Create Alternative Cost Center Group Create Primary Cost Elements (related to G/L accounts) Create Secondary Cost Elements (for distributing costs) Create Primary and Secondary Cost Element Groups Create Statistical Key Figure (for distributing costs) 7/16/2015 10