Transcript Document
Module 9
Setup
for
Controlling
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Controlling (CO)
CO
FI
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Controlling
Internal Accounting
Cost Accounting
Managerial Accounting
Flexible – Non-standard
Financial Accounting
External Accounting
Financial Statements
Taxes
Standard
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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
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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.
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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.
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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.
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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
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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.
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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.
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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)
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